Archive for collapse of the dollar
As if we didn’t notice all by ourselves, we are told by the media that ‘inflation is getting uglier and uglier.’
The also tell us that inflation is 4.2% and THIS is how they arrive at that number. You see if YOU can work the figures out.
The index for fuel oil rose 10.4% in May (2007) and soared 64% over the 12 months. The gasoline index rose 5.7% in May and surged 20.8% on a year-over-year basis. The index for natural gas rose 5.6% in May, and was up 16.5% over the last year.
Tossing us a bone, we are told:
“These (CPI) numbers are nowhere near to what we’re seeing in the real world,” said Peter Beutel, energy analyst for Cameron Hanover, who believed the “real” cost of living has increased at a higher rate than the index shows. “But even these diluted numbers are showing that inflation is getting uglier and uglier and uglier.
I say that we are being ABUSED.
Bernanke hoped his statements to the global bankers would shore up the value of the dollar. Funny how that works, only NOW do lies not actually translate into confidence.
Bernanke devoted most of his speech to a candid review of what he doesn’t know. He isn’t really sure of the effect of commodity prices and rising wages on inflation, and “there is much we do not understand about inflation expectations”. Not much reassurance there for those who think the Fed chairman’s hand is firmly on the tiller, steering the economy between the twin shoals of inflation and recession.
The gods want human sacrifice in retribution for the boom period.
According to Roben Farzed of Business Week, about Lehman Brothers MASSIVE losses:
Wall Street is a merciless place. And it almost helps to use the angry god imagery of old Aztec lore. At the end of every boom cycle, the gods are very angry. And not only do they want layoffs, but assets and entire firms to be sacrificed, kind of as retribution and as indication of the creative destruction.
My guess is, they just didn’t get enough wealth off of YOUR back.
With Katrina STILL in catastrophe mode, STILL vulnerable to more storms, tens of thousands (if not hundreds of thousands of people STILL unable to come home, have a home to come to; with Iowa flooded nearly from stem to stern and FEMA and DHS nowhere to be found; with 1 out of 100 homes being foreclosed upon; the Federal Reserve JUST HAS TO SAVE THE CRIMINAL BANKERS FIRST, last and always.
There is NOTHING for you, out of YOUR TAX DOLLARS, except further losses. Oh, and that pittance of a loaner ‘refund’ to you that didn’t even cover the increased costs of your gasoline this past year.
About that miraculous boost in your income they say:
All this adds up to an economy that is treading water but not sinking. The stimulus checks have given the economy added strength, but when that temporary boost wears off, its ability to stay afloat will depend on an easing of petrol prices, a recovery of house prices and sales, continued recapitalisation of the banks, and consumers’ willingness to continue spending, which in turn will depend on a strengthening labour market.
The social contract Americans have with the Federal Reserve is that they will manage the money, and the economy, well. For the benefit of AMERICA and AMERICANS. This ‘trust’ provided the opening for opportunists of all types to take advantage, with the added abuse and insult of our own ‘representatives’ giving this PRIVATE CORPORATION even more power and control over the entire economy of America. Our ‘representatives’ only make the matter worse, diverting blame for their own incompetency, focusing on things that make no difference at all, and IGNORING the few who REALLY DO know economics and can resolve the situation.
Job losses are extreme, with as we know, at least another 52,000 major jobs being lost in the near future, but this is what we are told:
Payrolls sink in February, fueling recession anxiety. Unemployment rate declines, but that’s because there are fewer people in the workforce. (???)
Where did those people go? Died of exposure?
and in the same article this:
There was a net loss of 63,000 jobs, which is the biggest decline since March 2003 and weaker than the revised 22,000 jobs lost in January. Economists had forecast a gain of 25,000 jobs.
Yes, the new social contract in every respect is abuse. In politics, in society, in economics Americans are being used, abused, lied to, sucked dry, and tossed out in the streets. While we pay taxes like never before in history, our people get no help when disaster strikes. We cannot get health care. We cannot even get the truth.
What will happen to YOUR life when oil is $250 a barrel, meaning that your money is worth about half of what it is now, while the costs for EVERYTHING go up another 64%?- pardon me, 4.2%?
“It would be a disaster for all the oil-importing countries, all the democracies and China,” says James Woolsey, the vice-president of consultant Booz Allen & Hamilton.
“And it would be hugely beneficial for the many monarchies and dictatorships that are the main suppliers.”
Some investors are already betting on Mr Miller’s forecast.
However at US$ 250 a barrel, “there would be a massive shutdown of companies”, says Carlos Mattei, procurement vice-president for glassmaker Vitro SAB.
And big companies would be nationalised.
The absolute bottom line of inflationary depression. All unnecessary. All to make a few incredibly rich. Is that NOT abusive?
I had the benefit of knowing a family who immigrated from Russia some time after the economy collapsed there. I asked the wife: “What did people do when that happened? People MUST have lost their houses, their jobs, their property!”
Her answer was that people just ‘stayed put.’ Not only did no one have any money to move, the authorities had no money to remove people. There was no money to foreclose or repossess.
Last year, our dollar was worth $.04 of what it was when the gold standard was dropped.
Where can it go except to $.00 with all these fabulous moves of our government to send us back, temporarily, a little money; with Bernanke creating more inflation with drops in interest; with the government pumping Russian money into our economy by selling off assets?
When we hit ZERO, we are bankrupt. I suggest we’re there already, thanks to these recent ‘solutions’.
We’ve been told for years that change would mean some pain and sacrifice, and because of that there was no political ‘will’ to force those changes.
We’re now facing the kind of pain that the world has never experienced before.
Too bad people are more interested in voting for a rock star like Barak Obama, who is entirely ignorant of economics and wants to add unbelievable amounts to our current spending instead! Where, exactly, will he get that money from?
We need someone who understands economics, like Ron Paul, who is also courageous enough to tell us that, one way or another, there will be pain. Healing pain, or catastrophic death-dealing pain- we’re going to get one or the other.
Rather than come clean about the thieves that are destroying our money, the government has instead decided to remove from their website, a piece at a time, information that makes public the cascading collapse of America. Perhaps if we’re busy watching the latest sitcom, we won’t notice!