Posted on 07/18/2013 5:59:34 AM PDT by Errant
As the FED turns up the heat in the central bank frying pan, the frogs (public) don't realize they are being cooked to death by inflation. I am quite amazed how loud the sizzling sound has become, but for some odd reason hardly anyone notices it.
Unfortunately, we are well past the point of no return. It's only a matter of time now before the whole "Financial Cliff" falls off the mountain side. Until then, gold and silver investors will have to put up with some of the worst analysis ever to come out of government and MSM.
You see this is quite amazing when we consider that just a few generations ago, gold and silver were the two most important monetary metals used in the economy. Gold's strategic role was shown when Roosevelt confiscated the precious metal in 1933 and revalued it to supposedly save the economy.
However, any mention of the subject of gold today to any of the members at the Fed or U.S. Treasury during a public hearing, and you will hear a subtle laugh or snicker as they explain it's just a traditional piece of metal taking up space in central bank vaults. Of course, down deep they believe the opposite, but when their job is cooking frogs for a living, the less the public knows... the better.
(Excerpt) Read more at marketoracle.co.uk ...
The real secret weapon is that the US has had no budget since 2009. The last ballanced budget was 2001! Since then we have seen a game of currency debasement musical chairs.
This one chart says it all:
https://en.wikipedia.org/wiki/File:GAO_Slide.png
Thanks for the chart. Given that interest is already a significant cost (looking at the chart), it’ll be a real shock to the system if it were to double! It’s no wonder Bernanke is doing everything he can to keep it near zero.
This is one of the most egregious market manipulations in history. The problem is that the criminal activity is being directed by governments. Futures expire next Thursday. I bet they keep it under 1300 and burn a bunch of speculators. After that, look out. My inflated 2 cents anyway.
Someone mentioned that by not having a budget, it allows the stimulus bill to be renewed. Perhaps someone can clarify this?
Agree. And as bad as that chart is, it’s not clear whether the chart takes interest rate into account. A rising interest rate may make this much worse. At any rate, at least it indicates an exponential function, something that too few folks understand.
The fed has pumped more than $4 trillion into the markets, printed a gazillion dollars, made more dollars out of thin air for credit use, and has manipulated stocks, interest rates, and other key financial areas. All this says we are wound tight for a springing forward into inflation like a Weimar Mark. Many power brokers are going to reap all kinds of profits and they couldn’t care less what happens to the rest of us.
Not only do we have no budget, we have a WH that takes NO initiative in budget cuts or controls, and accepts no Congressional limits on spending
the US “debt clock” was stopped yesterday when the govt was within 25 million of exceeding spending authority!
they have been running the govt for the past 2 months on money pilfered from the TSP federal employee (contributory) retirement fund
obama is treating this nation’s resources like a credit card with no limit and congress acting like indulgent wimp parents afraid of a temper tantrum from an out of control kid
Unfortunately, we will not have a growing energy supply for much longer.
why not?
Okay, I have a small IRA account slowly loosing value at a bank, left over from divorce. Would it make sense to liquidate it, take the tax/penalty hit, and buy silver? It’s less than $3k. Anyone? Anyone?
If consumption is 70%+ of the economy, how does implosion via hyperinflation benefit anyone financially? Especially with rises in all sorts of taxes, the imposition of more and higher fees, to the point where states offer tax credits or cost sharing for services that used to be covered by regular taxes, but have now been privatized and have fees attached?
I suppose there may be some who relish being King of the Dunghill, but I just don’t get it. Gutting the USA for spite or to boost other nations as superpower du jour, or to benefit the Global Governance of the UN could be a reason, I suppose, but it seems to me to just put the entire globe on a downhill slide. To whom will the new superpower sell its goods? From which turnips will it draw what blood? Destruction of US resources increases the availability of what and to whom?
Are there really those who truly desire fewer workers, lowered production, sequestered resources and a global serf class just large enough to serve the few super-wealthy elites? It’s possible, but smaller revolutions were brought about in isolated places in the past when this was tried. With nothing left to lose, would the world’s populations simply accept this sort of situation?
It is just so bizarre.
The very rich are buying properties, businesses, boats, planes, cars, metals, and other tangibles. This type money manipulation is giving them a period of deflation before hyper inflation. They Pump the markets to get more money then use the deflationary period to buy.
I’ll give you a for instance about what I am talking about: I can sell several thousands shares of Boeing for over $100 a share that I bought for $32-52/share. That allows me right now to buy a Florida waterfront property for $300k that was over $1 million just 5 years ago, boat dock included. It would be an additional home. With that I can also sell less than a thousands additional shares and get a rather nice boat for about $75k that was once $300+k to put in that dock. Even airplane prices have been cut by about 40%. An airplane that was $360k is now $240k at most, and sometimes down to $160k.
Axiom: Those with money make out in a recession. Their buying power is maximized. Toss in fed manipulation and they can ride the wave, too. Of course, they don’t know when the wave will end or even begin, but once it happens they can jump into it for excellent investing and buying opportunities.
How are you set for surviving a few months without the ability to get to the store?
If you aren't, I'd suggest purchases of a few months worth of long term storage foods, water, shelter (tent, sleeping bag, other camping supplies), and other survival type supplies are needed.
But their buying power is enhanced now.
When the inflation sets in how will their dollars be worth any more than mine? Their property may skyrocket in “value” because of the inflated dollars but who will buy it?
Just askin, not arguin...
Able to buy up assets at lower prices later from the profits they're taking through manipulation and insider information now.
If the FED keeps printing, and I think they probably will, then I believe like you that we will see skyrocketing prices of essential items.
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