Archive for inflationary depression
When I visited Mexico some years ago, I heard that our border guards were incensed because Mexicans BELIEVED that Americans walked around with bags of money. To their mind, this was laughable, a sign of how IGNORANT people were in Mexico. I mean, wouldn’t ANY American be suspicious of someone who walked around with BAGS of money?
However, when I went to cash a couple of hundred of dollars in for pesos, I discovered that the exchange rate was in the area of 3600 pesos PER DOLLAR and I did, indeed, NEED to walk around with a bag full of money.
Well, what’s a few zeros between you and me, hey? In Zimbabwe where their inflation increases the necessity to add zeros to their currency (at the rate of 215 MILLION percent) BY THE HOUR, knocking off ten or twelve every few months and re-setting the value of their currency is quite a common occurrence.
Shortly, when Obama calls a ‘bank holiday’ as predicted by Gerald Celente, your money won’t be available until the holiday is over, at an anticipated rate of ten cents on the dollar. Its either that, or you’ll be an instant trillionaire overnight, month after month after month.
Isn’t governance by the Federal Reserve a dream?
Inflationary depression. Not just for the Third World anymore! By the way, its all your fault.
Despite what our politicians are telling us, experts in other lands have issued the warning: Economic collapse within three months.
The Royal Bank of Scotland has advised clients to brace for a full-fledged crash in global stock and credit markets over the next three months as inflation paralyses the major central banks.
“A very nasty period is soon to be upon us – be prepared,” said Bob Janjuah, the bank’s credit strategist.
A very nasty period indeed.
Ron Paul was right. Globalization, according to Janjuah, the Royal Bank’s credit strategist.:
“Globalisation was always going to risk putting G7 bankers into a dangerous corner at some point. We have got to that point,” he said.
US Federal Reserve and the European Central Bank both face a Hobson’s choice as workers start to lose their jobs in earnest and lenders cut off credit.
The authorities cannot respond with easy money because oil and food costs continue to push headline inflation to levels that are unsettling the markets. “The ugly spoiler is that we may need to see much lower global growth in order to get lower inflation,” he said.
“The Fed is in panic mode. The massive credibility chasms down which the Fed and maybe even the ECB will plummet when they fail to hike rates in the face of higher inflation will combine to give us a big sell-off in risky assets,” he said.
Just as then, the dollar has plummeted far enough to cause worldwide alarm. In August 1992 it fell to 1.35 against the Deutsche Mark: this time it has fallen even further to the equivalent of 1.25. It is potentially worse for Europe this time because the yen and yuan have also fallen to near record lows. So has sterling.
Inflationary Depression is nearly upon us. Ron Paul was right, and he is being proven out in the most dire of ways. The Fed will save the banks like Morgan Stanley and Lehman, EVEN AT THE EXPENSE OF THE AMERICAN ECONOMY.
Our government is NOT our friend, even with ‘representatives’ of the people, since they have been bought and sold like cattle.
Brace yourselves, people. About 7 million died because of the last Great Depression. That was without a war, without martial law, without China being a well-armed enemy threatening war.
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?
Ron Paul’s predictions are all coming true. Here is a particularly unfortunate one.
It took long enough, but perhaps sooner there wasn’t enough economic misery among the American people to accept this plan as a good idea. It may not be enough misery yet, but to float this idea now, before the economic collapse and/or inflationary depression actually hits, makes it look like the Fed is ‘ready’ and prepared to ‘help’ us.
The NY Federal Reserve President, Timothy Geithner, has obliquely announced the benefit of, and the intention for, a global reserve bank. Of course, he has his own interests, as being the key architect of the HUGELY EXPENSIVE Bear Stearns bailout implies. For the Fed, financial structure over any other interest, any other consideration, is critical, particularly if your goal is to have ONLY ONE GLOBAL BANK.
In what can ONLY be construed as a complaint, given the unbelievable authority over all things economic that our so-called ‘representatives’ just gave the Fed,
“At present the Fed has broad responsibility for financial stability not matched by direct authority and the consequences of the actions we have taken in this crisis make it more important that we close that gap,” Mr Geithner says, in an excerpt of a speech to be delivered today at the Economic Club of New York.
A global bank will need to have assets to back up their system- destroying all the savings, acquiring through foreclosure millions of homes and business properties, buying up assets for pennies on the dollar, ALL ON AMERICAN TAXPAYER FUNDS, explains the flaccid impotence of Bernanke to act in such a way as to protect the American dollar, American assets or the taxpayer financed banking structure.
The ONE WORLD GLOBAL BANK is coming, at YOUR expense. You won’t have any assets left to provide for yourself, your children, your retirement. There will be NOTHING except a depression so great that unless we accept the electronic Amero (or other global currency) funds made available only through implantable electronic RFID chips, you will most likely die of starvation, homelessness or imprisonment.
Welcome to the fruits of the Federal Reserve Banking system.
Now from the experts we hear that gas can easily be $12 per gallon. In a year, maybe two. Then, $15 per gallon.
Well, WHO CARES?
An expert in economics, running for President, is just nuts.
So, far better to vote on plumbing, skin color, or war-mongering. THAT’S SANE.
Just imagine- think taxes are high now? Wait until the government decides it needs more money to pay for its additional gas expenses. Wait for government officials to increase your taxes to pay for the extra fuel fees for flying around the world for no benefit to us. Wait until the taxes go up to pay for the extra gas costs for the post office delivery system. For busing the kids to and from school. For the firetrucks, inspectors vehicles, police cars, military fuel expenditures.
Wait until your costs go up at the stores- plastics are made from oil, anything with plastic in it, on it or packaging it will skyrocket in price. Ordering online instead of driving to shop? Wait till you see the new shipping fees. Groceries shipped in from Mexico, Brazil, China or across the country? Try adding those fuel costs over distances and see what the price of food becomes. Clothing made with oil based synthetics will suddenly become as pricey as haute couture. Medical care is heavily dependent on oil-based plastics. Think your insurance and health care costs a lot now? Wait til then…
But, Ron Paul, the only candidate who even has a clue what economics is all about, is the one that’s nuts.
Unemployment is bad NOW? There won’t even be work at McDonalds. Nobody will be able to afford to eat there anymore. There won’t even BE a McDonalds. Maybe you’ll get lucky and get drafted, so at least you’ll get an e-paycheck. Into the military. Into the wars the ‘powers-that-be’ seem to determined to ‘win at all COSTS.’
Far better to give the government to people who want to double government expenditures at TODAYS prices, and who cares what those costs, and the taxes on YOU, will become as gasoline continues its hideous climb. When it takes everything you’ve got and MUCH MORE to heat your home in the winter. That’s when the truth of what an inflationary depression REALLY is will hit HOME.
Maybe we’ll be immigrating to Russia! Now, THAT’S SANE!
That’s when you’ll say ‘we didn’t know!’
You didn’t want to know.
As our economy has deteriorated into an inflationary recession gaining steam, with an inflationary DEPRESSION on the horizon; and Homeland Security in concert with the FDA and USDA have trashed our local farms, destroyed our food producing communities like the Amish, with AT BEST ‘overzealous’ enforcement of unnecessary regulations and monitoring devices, there has been an insidious creep of food insecurity that terrorists could NEVER accomplish without the help of Big Brother.
From family and friends in the Upper Peninsula of Michigan, I heard that wheat is actually being rationed. Now I hear that wheat is being rationed in Massachusetts. While the UP of Michigan may be a ‘backwater,’ NOBODY thinks that Massachusetts is one.
This news is getting much worse by the day. There are reports that there are only ten weeks left of supply, which only takes us to the beginning of the growing season.
We are hearing of panic buying of U.S. wheat.
Investors, losing their shirts in the criminal financial markets, have discovered food crops as the next ‘great’ profiteering opportunity and have therefore more than doubled the price of futures. “Wheat futures for March delivery rose 30 cents, or 2.8 percent, to a record $10.93 a bushel on the Chicago Board of Trade. The contract rose the 30-cent exchange limit for five straight days. The 16 percent gain this week is the biggest in history.”
If you haven’t figured it out by now, if these people don’t care if you and your family are homeless, as long as they can make their money off of you, they ALSO won’t care if you starve.
We are being told to ‘Forget the oil! The NEXT big crisis is FOOD!’
So, what are the reasons that YOU have to worry about food now? Will your grandmother starve because her SS won’t cover the higher food prices AND higher utilities and rent?
The first is, of course, the profit-taking of the futures market. The rich who can afford to play with futures to get their ‘fair share’ don’t care what they do to the rest of the market. They WANT higher and higher prices to increase their profits.
Corporate agri-business. It has already driven most small family farms out of business, and with this sub-prime mortgage mess, many farmers are ‘losing their shirts.’ Whether you want it or not, the ‘powers-that-be’ want to pursue genetic modification of foods like corn, and they’re FORCING it on us. “Mr. Coxe said crop yields around the world need to increase to something close to what is achieved in the state of Illinois, which produces over 200 corn bushes an acre compared with an average 30 bushes an acre in the rest of the world.”That will be done with more fertilizer, with genetically modified seeds, and with advanced machinery and technology,” he said.
Genetically modified foods do NOT grow their own seeds, no farmer anywhere can save out seeds for next year’s crops. The seeds MUST be purchased from agribusiness, guaranteeing a minimum PROFIT to corporate agriculture, no matter what happens. If corporate agriculture owns all the best farm land, and all the crops, they can EXPORT ALL OF OUR FOOD to the highest bidder, regardless of the needs of our own country. Corporate agribusiness has created entire lakes of animal poo, contaminating underground water supplies and endangering everyone around. Genetically modified crops have killed butterfly populations, contaminated other fields and has generally run riot over the safety and security of our food supply, all the while accepting huge payouts from our government to NOT grow food on land agribusiness has set aside, to keep prices high enough.
Yes, environmentalists have demanded that we pursue ethanol as an alternative fuel source, but there is NO REASON it should contribute to the destruction of our food supply because only the stalks and extra material need be used to create ethanol. The food itself can, and should remain within the food supply. Why isn’t it?
This dangerous and terrible overregulation of food production by our government, ‘justified’ by only TWO isolated cases of mad cow disease, and the drumbeat of terrorism fears affecting food supplies, is just hyperbole designed to get the public to allow the complete take over of our food production sources. As the Amish are discovering, there is no reasoning with these departments, and civil and constitutional RIGHTS to property, to religion, to privacy are GONE.
Soon the biblical prophecy of ‘a days wages for a quart of wheat’ will not just be ‘pretty words,’ but a genuine reality, thanks to our ANTI-CONSTITUTIONAL GOVERNMENT and those who are profiteering at YOUR EXPENSE.
This is the path of an inflationary depression, with food prices skyrocketing as wages, wealth and equity dissolve into thin air. Thanks to Homeland Security and the USDA, YOU CANNOT EVEN GROW FOOD FOR YOURSELF ANYMORE.
A new crisis is emerging, a global food catastrophe that will reach further and be more crippling than anything the world has ever seen. The credit crunch and the reverberations of soaring oil prices around the world will pale in comparison to what is about to transpire, Donald Coxe, global portfolio strategist at BMO Financial Group said at the Empire Club’s 14th annual investment outlook in Toronto on Thursday.”It’s not a matter of if, but when,” he warned investors. “It’s going to hit this year hard.”
We MUST get rid of Homeland Security’s hold over our food supply. We must END the regulations that strangle our farmers and destroy our ability to feed ourselves. Only Ron Paul has even ADDRESSED THIS ISSUE in an intelligent manner. The rest of our candidates haven’t even NOTICED the crisis, much less thought about how to address it.
How are YOU going to feed YOUR family as this worsens? Grandma has already been living on dogfood and noodles for a year…
A Perfect Storm of INSANE governance and unnecessary suffering for… what?
Hold on to your hats- this is going to get UGLY.
We have forgotten the stagflation of the ’70’s, created by the ‘powers-that-be’ with a false ‘oil crisis.’ As mentioned in other posts, my father was a gas station owner/mechanic at the time, and it was a hideous time for enterpreneurs in that industry. The lines for people to get gasoline often went blocks and blocks, sometimes a mile or more. I was surprised, even then, that the stress alone in dealing with desperate customers didn’t kill him.
In our day, the ‘powers-that-be’ have created a new economic crisis and they, once again, have done it on purpose. Using oil, and creating crises around the world that continually put oil at risk, among other pre-planned economic problems, they are setting us up for a financial catastrophe that will go screeching around the world.
Another coup for Big Oil, and the military industrial complex. Look!
It isn’t a coincidence that just when the housing bubble collapses that two things happen. The first is the easy credit cards that permit people to continue a standard of living they can no longer afford, at criminally high interest rates. You may not remember, but thanks to our bought and sold congress, you can’t claim credit card debt on your bankruptcy anymore, like student loans and back taxes. But there is another feature- if you are late on ANY bill, even a non-credit card bill, something like your light or phone bill, your credit card company can increase your interest rate to the very highest allowed by law.
The second is that suddenly, though the companies are whining about all the lost mortgates, they have dried up all new and re-financing mortgages that could help people keep their homes, saving more foreclosures.
Drying up mortgage credit purposefully is what made the Great Depression so terrible, so long lasting, and drove the government to consider fiat money. Removing re-mortgaging options meant that a very few people walked away with most of the assets for pennies on the dollar, and they’re doing it again.
You cannot be enslaved to a system that permits you to declare bankruptcy and remove all of your debt. By keeping you obligated in ways the rich NEVER are, it isn’t hard to foresee the return of ‘debtor’s prisons.’
Furthermore, this time, there is no fixing the problem. It is fiat money that got us into this mess, and the estimates look now like we OWE 720 times the GDP so far!
Ron Paul is the ONLY candidate that understands the workings of this criminal economy and how it works and doesn’t work. He’s the ONLY one who knows what to expect and how to fix it. But, it is so painful that it is hard to face.
Take stagflation, for example. This was the crisis of the 70’s and it made everything about living extremely difficult. Businesses went under. Families suffered. Credit was denied to women and minorities as a matter of principle. Home ownership was very difficult to achieve and for young couples, establishing credit at all was a tough hill to climb. To avoid hyper-inflation we had wage/price freezes that kept things stagnant, but perhaps the alternative was worse.
Now, we’re looking at INFLATIONARY DEPRESSION. What does that mean? It means that inflation will not only make prices for everything rise faster and faster, which is the inflation part, the depression means that people won’t buy or sell anything. They won’t be able to.
We are seeing this already in some areas of Michigan, where even yard sales sell almost nothing. You may want that used couch, but you don’t dare buy it- your utility bills and gasoline expenses are going up at such rates that you may need the extra money just to stay at the same place. You may want to sell that couch because you’ve lost your house, and are hoping to raise the cash for a move elsewhere, but nobody wants it for a price. You have to nearly give it away.
A depression means that nobody can buy or sell anything. They just don’t have the money for commerce. Combine that with high-test inflation, and even the things you MUST buy, like food, get more expensive by the day.
Even Faux News has decided they had better talk to Ron Paul, since there isn’t another Presidential Candidate that can even approach this issue with credibility.