No one wants to talk about the 600 pound gorilla in the room. Inflation: But I will.
Since 1960, and through the 70's we came to accept this term called “inflation” and that inflation was just a "fact of life." We didn't really understand it, so we openly allowed others to keep this vicious thing under control. We only hoped those in control of it, (the Federal Reserve and Treasury), through people like Alan Greenspan, (the secret controller of all things Dollar), had our best interest at heart. Trouble was, it wasn't your interest they had in mind.
Interest rates went up and down depending on the rate of inflation. They raised rates to cool off the economy and lower them to get it moving again. In a couple of words, we adopted...Blind Faith as our individual policy.
The only trouble now is the Rate has been at "near zero" for now 2 years and after spending 1.7 Trillion Dollars of your tax money on failed stimulus, the economy is actually worse off than when Obama began office.
Government expenditures and low interest unfortunately have not stimulated the markets to expand. Keynesian economics again is proven that it just simply does not work. Member banks are not lending and new regulations and strict lending policies are preventing money (credit), from flowing into the economy. In a few words, the "credit model" is self destructing and 100 years of inflation (theft) is finally coming home to roost...deflating values back to the reality of gold.
The site link I have provided below does a much better job of graphically explaining the effects of inflation and compares today's data with yesterdays baselines. At first glance, it looks a bit overwhelming, but the presentation in this site is almost flawless in its scope and delivery. It covers the gambit and focuses on the important comparisons we should each have "almost memorized." Their that important. We are in an "economic pickle" solely because we were lied to in 1913 when the Federal Reserve was created...and have not payed attention to these issues since.
We need a mental picture of the charts (or at least remember where they are located), so we can weed our way through the false and misleading messages we get fed each day from the slanted progressive liberal news. You know, things like “how we are doing” or “how and why we got here.” You don't have to worry much about the last one, because the media rarely connects “the dots of reasoning” past 2 connections....mainly the "House of Bush" and "those Republicans."
However good this site actually is, (and it is great), what it does not explain is the simple concepts that we need to get our heads around if we are to make sense of the charts: "Inflation Basics."
So, below I am providing a few views on inflation to consider.
Axiom 1: Inflation is raw and underhanded simple theft of your wealth...it is the dilution of money's value through things like over printing of the money supply, allowing a currency to float instead of pegging it to gold's value, extending credit to people who do not deserve it. Like air filling a balloon with air, it's the reason everything you buy, from Gasoline, to food, to medical cost is far more than yesterday, or more importantly, substantially more than 10 years ago. Remember when gas was 50 cents a gallon...or how about $1 a gallon, or now how about $2.50 a gallon. "Inflation is dilution of a currency's true stored production value." It's the reason why Wall Street DJIA is at 12,000 plus...and not 3,500-3,800. I just can't get over the "celebrations of theft" witnessed on TV each time the market rises in response to some attempt to shore up a losing model. The Fed does not care about your wealth and neither do Mutual Fund Managers. They do care about transferring your wealth though to their balance sheets.
Axiom 2: What goes up...comes down. What is inflated, will deflate at some point either slowly, or all at once. A balloon cannot be filled with air indefinitely. At some point it will “deflate” (see the opposite forces occur)...the lowering of the value of goods and services relative to a “financial standard.” That standard for 3000 years has been, gold and silver.
Axiom 3: Credit fills the balloon, by allowing “growth” without the opposing balancing effect of a stable currency's stored production value. When you pay cash for things, you quickly find out what you can afford...and the true worth of something in today's terms. CIP: Not long ago, you needed 50% down to purchase a home. In 2009, you could qualify for a home if you had no job, no income and only stated you had income. So as we look back, the expansion of credit since 1945, (and the perception of "scarcity"), have been the driving force behind the ever rising home price. That remains true while credit exists...the opposite force...a contraction of credit...thus drives home values down. Cash sales show the true value of something. As we have seen in the last 2 years, the drop in home prices has only just begun. Some economists say we will likely see home prices return to 1984 levels as “dis-inflation” occurs in the coming months and year. Bad for lenders...worse for those foreclosed upon.
Axiom 4: Lacking a gold standard for the true value of our currency, if the “perceived value” or "confidence value" of our currency declines faster than proportional true gold value of the equivalent goods and services, you enter an economic phase called “hyperinflation.” Hyperinflation is unchecked run-away devaluation and theft. Think about it. As long as “gradualism” was employed and inflation was kept low people did not know they are being boiled, (being stripped of their wealth), like the poor frog in a pot of water rising in temperature to boiling. Bad for the frog. When inflation is out of control and is no longer gradual, the result is “hyperinflation”. Hyperinflation leads to a collapse in the value of the currency...a full blown “deflation”, where the value of everything must return to it's real price “expressed in terms of gold”. It happened many times in the past such as in Wiemar, Argentina, Roman Empire...and likely here in the USA sometime between 2012-2013. You don't have to be an economist to know that the financial wizards are almost out of tricks.
Axiom 5: When deflation happens, it will happen with lightning speed. Our electronic world is so connected, so "systemic", that a change in one country would be felt around the globe in a single day. This is why the powers that be are doing everything they can to prop up the Euro. If the Euro falls, the carnage both in Europe and abroad will be massive. On our end, many pension and 401K fund managers are heavily invested in Europe. I can only guess that some 12% of the derivative market, (a 645 Trillion dollar market), is in play in Europe's credit engine. If these derivatives, (insurance policies), come due all at the same time, it's going to make sub-prime fiasco look like a Sunday Church Picnic. Literally, you will wake up one morning and find 30% of your wealth has disappeared without explanation...and perhaps another 20% by days end. You won't need Facebook to tell you how it's going...you will be leaving home, or work, to go directly to your trusty bank. Unfortunately, when you get there the bank (all banks) will be closed for what is termed, "a Bankers Holiday." Guards with guns or the National Guard will be at the door saying “you will be told when you can come back.” In three days time you might be able to stand in line and get a paltry $300 in worthless cash. No one will be allowed to get to their safety deposit boxes. That will require a DHS officer to witness. Think it can't happen...it can...it has...and likely will this time. How do I know...the mechanisms to deal with the issue are already in place and executive orders are standing to respond...with force if required.
Solution: End the Federal Reserve. Seize the gold in every vault in the Federal Reserve, beginning with New York. In full transparency, report and show the world the true inventory of United States gold on-hand. Issue new United States Currency pegged to the value of the total gold reserves in hand and those confiscated. Convert the existing dollar to the new currency at the exchange rate of $1725/ounce to the equivalent value basis of the new currency. 1725 to 1 sounds good. Burn the old currency and melt down the coin. Revalue everything like was done in Europe when the Euro was put in play. Do not adopt the Amero, (a useless attempt to end our sovereignty by combining the countries in the Northern Hemisphere). Tell all countries you do not have any money for financial aid. The churches will provide the aid if they desire. Adopt a flat tax that sets 10% of all income to the government. Take the debts of all countries that owe the United States and inform China, Saudi and Japan (al el), the debt is theirs to collect if they wish in proportion. Our debts are hereby abolished as "paid in full." Issue new coinage in either gold, silver, or copper....nothing else. Bring all our fighting troupes fighting around the world home. Tell anyone that wants to mess with the USA that we will bring a bigger stick, hit hard and relentless until they say “uncle” or become a waste land. It was our response after December 7, 1941 and should be our policy now. You cannot fight our current five (count them five), wars on an empty tank...but you can adopt an all or nothing policy of victory or defeat. Abolish the Department of Eduction...they teach children how to become slaves. It can and will work.
So there you go. You have a basis in which to make an informed opinion about 2012. Either you choose more of the same, (accelerated socialism, the removal of God from our nation and collectivism), or you adopt God's laws (fiscal conservancy, moral code of social and individual conduct, self governance, true right and wrong). In summary, restore the meaning of the words..."In God We Trust"...for man is incapable of managing his own affairs.
(Rohr 2012)
Since 1960, and through the 70's we came to accept this term called “inflation” and that inflation was just a "fact of life." We didn't really understand it, so we openly allowed others to keep this vicious thing under control. We only hoped those in control of it, (the Federal Reserve and Treasury), through people like Alan Greenspan, (the secret controller of all things Dollar), had our best interest at heart. Trouble was, it wasn't your interest they had in mind.
Interest rates went up and down depending on the rate of inflation. They raised rates to cool off the economy and lower them to get it moving again. In a couple of words, we adopted...Blind Faith as our individual policy.
The only trouble now is the Rate has been at "near zero" for now 2 years and after spending 1.7 Trillion Dollars of your tax money on failed stimulus, the economy is actually worse off than when Obama began office.
Government expenditures and low interest unfortunately have not stimulated the markets to expand. Keynesian economics again is proven that it just simply does not work. Member banks are not lending and new regulations and strict lending policies are preventing money (credit), from flowing into the economy. In a few words, the "credit model" is self destructing and 100 years of inflation (theft) is finally coming home to roost...deflating values back to the reality of gold.
The site link I have provided below does a much better job of graphically explaining the effects of inflation and compares today's data with yesterdays baselines. At first glance, it looks a bit overwhelming, but the presentation in this site is almost flawless in its scope and delivery. It covers the gambit and focuses on the important comparisons we should each have "almost memorized." Their that important. We are in an "economic pickle" solely because we were lied to in 1913 when the Federal Reserve was created...and have not payed attention to these issues since.
We need a mental picture of the charts (or at least remember where they are located), so we can weed our way through the false and misleading messages we get fed each day from the slanted progressive liberal news. You know, things like “how we are doing” or “how and why we got here.” You don't have to worry much about the last one, because the media rarely connects “the dots of reasoning” past 2 connections....mainly the "House of Bush" and "those Republicans."
However good this site actually is, (and it is great), what it does not explain is the simple concepts that we need to get our heads around if we are to make sense of the charts: "Inflation Basics."
So, below I am providing a few views on inflation to consider.
Axiom 1: Inflation is raw and underhanded simple theft of your wealth...it is the dilution of money's value through things like over printing of the money supply, allowing a currency to float instead of pegging it to gold's value, extending credit to people who do not deserve it. Like air filling a balloon with air, it's the reason everything you buy, from Gasoline, to food, to medical cost is far more than yesterday, or more importantly, substantially more than 10 years ago. Remember when gas was 50 cents a gallon...or how about $1 a gallon, or now how about $2.50 a gallon. "Inflation is dilution of a currency's true stored production value." It's the reason why Wall Street DJIA is at 12,000 plus...and not 3,500-3,800. I just can't get over the "celebrations of theft" witnessed on TV each time the market rises in response to some attempt to shore up a losing model. The Fed does not care about your wealth and neither do Mutual Fund Managers. They do care about transferring your wealth though to their balance sheets.
Axiom 2: What goes up...comes down. What is inflated, will deflate at some point either slowly, or all at once. A balloon cannot be filled with air indefinitely. At some point it will “deflate” (see the opposite forces occur)...the lowering of the value of goods and services relative to a “financial standard.” That standard for 3000 years has been, gold and silver.
Axiom 3: Credit fills the balloon, by allowing “growth” without the opposing balancing effect of a stable currency's stored production value. When you pay cash for things, you quickly find out what you can afford...and the true worth of something in today's terms. CIP: Not long ago, you needed 50% down to purchase a home. In 2009, you could qualify for a home if you had no job, no income and only stated you had income. So as we look back, the expansion of credit since 1945, (and the perception of "scarcity"), have been the driving force behind the ever rising home price. That remains true while credit exists...the opposite force...a contraction of credit...thus drives home values down. Cash sales show the true value of something. As we have seen in the last 2 years, the drop in home prices has only just begun. Some economists say we will likely see home prices return to 1984 levels as “dis-inflation” occurs in the coming months and year. Bad for lenders...worse for those foreclosed upon.
Axiom 4: Lacking a gold standard for the true value of our currency, if the “perceived value” or "confidence value" of our currency declines faster than proportional true gold value of the equivalent goods and services, you enter an economic phase called “hyperinflation.” Hyperinflation is unchecked run-away devaluation and theft. Think about it. As long as “gradualism” was employed and inflation was kept low people did not know they are being boiled, (being stripped of their wealth), like the poor frog in a pot of water rising in temperature to boiling. Bad for the frog. When inflation is out of control and is no longer gradual, the result is “hyperinflation”. Hyperinflation leads to a collapse in the value of the currency...a full blown “deflation”, where the value of everything must return to it's real price “expressed in terms of gold”. It happened many times in the past such as in Wiemar, Argentina, Roman Empire...and likely here in the USA sometime between 2012-2013. You don't have to be an economist to know that the financial wizards are almost out of tricks.
Axiom 5: When deflation happens, it will happen with lightning speed. Our electronic world is so connected, so "systemic", that a change in one country would be felt around the globe in a single day. This is why the powers that be are doing everything they can to prop up the Euro. If the Euro falls, the carnage both in Europe and abroad will be massive. On our end, many pension and 401K fund managers are heavily invested in Europe. I can only guess that some 12% of the derivative market, (a 645 Trillion dollar market), is in play in Europe's credit engine. If these derivatives, (insurance policies), come due all at the same time, it's going to make sub-prime fiasco look like a Sunday Church Picnic. Literally, you will wake up one morning and find 30% of your wealth has disappeared without explanation...and perhaps another 20% by days end. You won't need Facebook to tell you how it's going...you will be leaving home, or work, to go directly to your trusty bank. Unfortunately, when you get there the bank (all banks) will be closed for what is termed, "a Bankers Holiday." Guards with guns or the National Guard will be at the door saying “you will be told when you can come back.” In three days time you might be able to stand in line and get a paltry $300 in worthless cash. No one will be allowed to get to their safety deposit boxes. That will require a DHS officer to witness. Think it can't happen...it can...it has...and likely will this time. How do I know...the mechanisms to deal with the issue are already in place and executive orders are standing to respond...with force if required.
Solution: End the Federal Reserve. Seize the gold in every vault in the Federal Reserve, beginning with New York. In full transparency, report and show the world the true inventory of United States gold on-hand. Issue new United States Currency pegged to the value of the total gold reserves in hand and those confiscated. Convert the existing dollar to the new currency at the exchange rate of $1725/ounce to the equivalent value basis of the new currency. 1725 to 1 sounds good. Burn the old currency and melt down the coin. Revalue everything like was done in Europe when the Euro was put in play. Do not adopt the Amero, (a useless attempt to end our sovereignty by combining the countries in the Northern Hemisphere). Tell all countries you do not have any money for financial aid. The churches will provide the aid if they desire. Adopt a flat tax that sets 10% of all income to the government. Take the debts of all countries that owe the United States and inform China, Saudi and Japan (al el), the debt is theirs to collect if they wish in proportion. Our debts are hereby abolished as "paid in full." Issue new coinage in either gold, silver, or copper....nothing else. Bring all our fighting troupes fighting around the world home. Tell anyone that wants to mess with the USA that we will bring a bigger stick, hit hard and relentless until they say “uncle” or become a waste land. It was our response after December 7, 1941 and should be our policy now. You cannot fight our current five (count them five), wars on an empty tank...but you can adopt an all or nothing policy of victory or defeat. Abolish the Department of Eduction...they teach children how to become slaves. It can and will work.
So there you go. You have a basis in which to make an informed opinion about 2012. Either you choose more of the same, (accelerated socialism, the removal of God from our nation and collectivism), or you adopt God's laws (fiscal conservancy, moral code of social and individual conduct, self governance, true right and wrong). In summary, restore the meaning of the words..."In God We Trust"...for man is incapable of managing his own affairs.
(Rohr 2012)
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