Free Republic

(Reuters) - Bank of New York Mellon Corp told some of its biggest depositors this week it does not want their money. BNY Mellon said it is charging a fee to big corporate and asset management clients that deposit more money than average, because it has been overwhelmed by deposits. Global economic turmoil -- including the Greek debt crisis and the U.S. debt ceiling debate -- has driven BNY Mellon's large clients to sell riskier assets and move the proceeds to deposit accounts. The flood of cash is likely to raise BNY Mellon's U.S. deposit insurance fees and could weaken...

The BNY Mellon apparently does not want money, not to lend, not at all. In a mad dash for cash Mellon has been flooded with it. Overnight lending rates went negative. Please consider BNY Mellon to Slap Fees on Some Big Deposits Amid Global Race to CashBank of New York Mellon Corp. is preparing to charge some large depositors to hold their cash, in the latest sign of the worries roiling global markets. The big U.S. custodial bank said this week in a note to clients that it will begin slapping a fee next week on customers that have vastly...

Preparing Your Investments For An Inflationary Future By Eric Fry 05/26/11 Laguna Beach, California – Let the boxing match begin!…In the near corner, we find deflation, with its furious fists of debt liquidation and credit contraction… And in the far corner, we’ve got Ben Bernanke’s printing press, with its menacing inflationary uppercut. Inflation will win this contest eventually, but the match might go the full 12 rounds. Deflation is no slouch. He packs a mean punch. Borrowers of all types – from single-family mortgage-holders to national governments – are defaulting on their loans…or moving rapidly in that direction. As the...

The table displayed immediately below is likely to surprise even our most-jaded readers. It shows the astronomical increase in cash prices for well-known food commodities over the past 12 months. With inarguable exactness, it contradicts the nearly constant prattle in the mainstream press that inflation is under control, or that it is peaking and likely to come under control sometime soon. Some items on the list have doubled -- even tripled -- in price over the past year. Others have risen at mere double-digit rates.

Inflation Fears: Real Or Hysteria? Economics / Inflation May 11, 2011 - 06:01 AM By: Ellen Brown Debate continues to rage between the inflationists who say the money supply is increasing, dangerously devaluing the currency, and the deflationists who say we need more money in the economy to stimulate productivity. The debate is not just an academic one, since the Fed’s monetary policy turns on it and so does Congressional budget policy. Inflation fears have been fueled ever 2009, when the Fed began its policy of “quantitative easing” (effectively “money printing”). The inflationists point to commodity prices that have shot...

Hyperinflation And Double-Dip Recession Ahead Economics / HyperInflation May 03, 2011 - 04:22 AM By: The Gold Report Economic recovery? What economic recovery? Contrary to popular media reports, government economic reporting specialist and ShadowStats Editor John Williams reads between the government-economic-data lines. "The U.S. is really in the worst condition of any major economy or country in the world," he says. In this exclusive interview with The Gold Report, John concludes the nation is in the midst of a multiple-dip recession and headed for hyperinflation. The Gold Report: Standard & Poor's (S&P) has given a warning to the U.S. government...

Osama Bin Laden To Cause U.S. HyperinflationMay 3, 2011 NIA is very pleased that Osama Bin Laden has been neutralized and is no longer a threat to American citizens. During a White House press event yesterday, counterterrorism adviser John Brennan was answering reporters questions and made the comment that al Qaeda "is becoming increasingly bankrupt". Unfortunately, Mr. Brennan got this backwards. The United States is becoming increasingly bankrupt as a result of al Qaeda. Although America has been safe since 9/11, we need to look at what the cost has been. The U.S. military is currently spending just as much...

Can We Give The Hyperinflation Thing A Rest? Economics / HyperInflation Apr 27, 2011 - 06:20 AM By: Mike Whitney The Federal Reserve is not going to push the economy into Zimbabwean hyperinflation. That's pure bunkum. The Fed's plan is to weaken the dollar to boost exports and to force China to let its currency appreciate to its fair-market value. The policy should help to lower the US's bulging current account deficit. By purchasing $600 billion in US Treasuries (QE2), the Fed effectively reduces the supply of risk-free assets, which sends investors into riskier assets like stocks and commodities. Is...

Over the past few years, mainstream analysts have shown a tenacious blind faith in the U.S. economy and the dollar that goes far beyond religion to the point of mindless cultism, so, when even they begin to question the future of American finance (as has been occurring more and more everyday), you know its time to worry. For those that have been following my work since 2007, the events of the past few months have not been a surprise at all, however, for those just waking up to the ongoing implosion of our fiscal infrastructure, the bubbling inflationary meltdown...

Inflation Versus Hyperinflation, The Crucial Difference Economics / Inflation Apr 17, 2011 - 12:49 PM By: Justice Litle Is it possible we will see hyperinflation in the United States? Yes, but not by the route you might think... "Hyperinflation." You've heard the word. You may have talked about it on the golf course or at the dinner table. (Or even in the grocery store.) There is a difference, though, between inflation and hyperinflation. They are not the same thing. And for the most part, there is no gradual path from one to the other. To wind up with true hyperinflation,...

One word (well technically two) can describe what is going on in the electronic pre-market arena right now: inflationary hysteria. Gold is at a new record, wheat is surging, corn is at highest since 2008, crude at a new 30 month high, silver is at $41.10 - a new fresh post Hunt high, beans surging, etc, etc, etc. Essentially everything is bid, following news first reported on Zero Hedge that PIMCO is betting the farm that either inflation is about to go parabolic and force bondholders to dump everything, or that the Fed will have no choice but to pursue...

Federal Reserve Must Implement QE3April 6, 2011 Gold prices surged today to a new all time high of $1,463.70 per ounce, while silver prices soared to a new 31-year high of $39.785 per ounce. Silver is now up 129% since NIA declared silver the best investment for the next decade on December 11th, 2009, at $17.40 per ounce. The gold/silver ratio is now down to 37, compared to a gold/silver ratio of 66 when NIA declared silver the best investment for the next decade. This means that not only is silver up 129% in terms of dollars since December...

HERSHEY, Pa. (AP) -- Chocolate is going to cost a little more green. The Hershey Co. on Wednesday said it raised wholesale prices by 9.7 percent, because its own costs have risen. The candy maker says the price increase takes effect immediately. It cited higher costs for raw materials, packaging, fuel, utilities and transportation as driving the hike. Consumers may not see the impact on store shelves right away, however. A Hershey spokesman said many retailers will be able to buy products at the old prices for about eight weeks. The announcement comes weeks before one of the most popular...

One of the most frequently asked questions we receive at the National Inflation Association (NIA) is what warning signs will there be when hyperinflation is imminent. In our opinion, the majority of the warning signs that hyperinflation is imminent are already here today, but most Americans are failing to properly recognize them. NIA believes that there is a serious risk of hyperinflation breaking out as soon as the second half of this calendar year and that hyperinflation is almost guaranteed to occur by the end of this decade. In our estimation, the most likely time frame for a full-fledged outbreak...

TAMPA - With food prices on the rise and families struggling to stretch their food dollars, sales of Spam are up – and so is the price. Spam is just the sort of food you'd expect Americans to turn to in an economic crisis. The iconic metal can has been a part of the country's food landscape since 1937, fed the troops during World War II and harkens back to Baby Boomers' childhood. Spam also enjoys something of a cult standing in popular culture, with legions of devoted fans swapping recipes online, annual festivals in Hawaii and Minnesota, and Spam...

Two thousand years ago, Marcus Cicero said “any man can make mistakes, but only an idiot persists in his error.” By such logic our species is idiotic indeed. For our ability to pass knowledge down through the generations applies only to the physical sciences. In the realms of the social decision making, where humility and realism are so often the dupe of hubris and self-delusion, each generation is condemned to relearn the mistakes of generations past. The abuse of political power, wars and popular uprisings are as prominent in ancient history as in today’s newspapers. In the 5th century BC...

The one thing that could lead to a recession, economist David Rosenberg said Monday, is inflation. "We have this unusual situation where food and energy prices are going up double-digits," said Rosenberg, chief economist and strategist at Gluskin Sheff & Associates. "In the past when this has happened, you've had a significant squeeze not just on corporate profits down the road, but [also] on household incomes." In real terms, Rosenberg said average weekly earnings are negative for four months in a row. Consumers have been helped by a payroll tax cut, but Rosenberg said this "incremental benefit" will subside after...

WASHINGTON — Wholesale prices jumped last month by the most in nearly two years due to higher energy costs and the steepest rise in food prices in 36 years. Excluding those volatile categories, inflation was tame. The Labor Department says the Producer Price Index rose a seasonally adjusted 1.6 percent in February, double the 0.8 percent rise in the previous month. Outside of food and energy costs, the core index ticked up 0.2 percent, less than January’s 0.5 percent rise. Food prices soared 3.9 percent last month, the biggest gain since November 1974. Most of that increase was due to...

Q.E. Money Printing Negative Feed Back Loop to Hyper-Inflation Oblivion Interest-Rates / Quantitative Easing Mar 09, 2011 - 09:16 AM By: Jim Willie CB USFed Chairman Bernanke and the Quantitative Easing programs are caught in a negative feedback loop, the instruments at risk being the USDollar and the USTreasury Bond. The former suffers from lost integrity and direct inflation effect. The latter suffers from direct intervention and market ruin. The next QE round is guaranteed by the failure of the previous program in an endless cycle to be recognized later this year. Leaders are confused why the recovery does not...

Hyperinflationary Deluge Is Imminent Economics / HyperInflation Mar 07, 2011 - 03:59 AM Tyler Durden Tyler Durden writes: A deluge of an unprecedented magnitude is both inevitable and imminent. The consequences of the economic and political mismanagement will have a devastating impact on the world for a very long time. And the consequences will touch most corners of the world in so many different areas; economic, financial, social, political and geopolitical. The adjustment that the world will undergo in the next decade or longer, will be of such colossal magnitude that life will be very different for coming generations compared...