Posted on 09/14/2010 12:17:12 PM PDT by Razzz42
Today is a case of being careful what you wish for – the Fed has pulled out all the stops in an attempt to avoid a deflationary trap tied to the inception of the credit crisis that broke loose in the summer of 2008. Since then they have flooded the system with liquidity through a process dubiously referred to as Quantitative Easing. They have also loaded their balance sheet with worthless loan paper and shoved interest rates practically to zero.
Not to be outdone, our illustrious administration has saddled us with enough debt at the federal level to last three generations all in the name of “stimulus”.
The result – they have gotten their wish – sadly for all of us, who actually have to live with their damn stupidity, they have let slip the dogs of inflation.... ....I shudder to say it but based on what I can see of the price action across the commodity sector today, an evil has now been loosed upon the land that portends the eventual ruin of the middle class.... ....When it does, home heating bills, home cooling bills, industrial energy costs and gasoline prices will join the list of soaring costs nationwide.
The one-two knockout punch of higher soaring food cost and higher energy costs will finish off the consumer whose wages have been stagnant for longer than I can now remember.
Make no mistake about what you seeing, especially with the price action of gold and silver. Both metals are signifying a loss of confidence in the Dollar and particularly in its management team....
Now to the technical picture in gold –
(Excerpt) Read more at jsmineset.com ...
It’s been a long time since silver was over $20. Wonder if we could see 50.
A sudden burst in commodity prices is one of the telltale stepping stones on the path to hyperinflation. See:
http://www.freerepublic.com/focus/f-news/2588631/posts
Gonzalo Lira lays it bare in terms so dire, even a Democrat Caveman can understand it.
I’ve been a CIGA for years.
Jim says gold @ $1650 in January, 2011, then onto Alf’s numbers.
The list, ping
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“...I shudder to say it but based on what I can see of the price action across the commodity sector today, an evil has now been loosed upon the land that portends the eventual ruin of the middle class.”
One of those blink and you’ll miss it things that, oh, could be kinda important.
Gold Prices Surge to Record Highs ($1,271.70 an ounce — a record closing high)
http://www.freerepublic.com/focus/f-news/2589068/posts
Glad to see you guys get it. A change from some of the usual clowns that show up on these posts.
Actually this banking (debt) system is crumbling before our eyes and taking everything down with it as gold and silver record the confidence level in all fiats with no clear cut winner emerging as stable.
The whole situation has been mild so far. October should give the masses a good taste of the future.
“Fiat” is based on full faith and credit.
*BLINK”
I’m diversifying anything I’ve got left into commodity based assets priced in USD. It’s the only way I see not to get wiped out.
Whouda’ thought it’d come to this?
I’m in gold and silver miners myself, it’s where the hard currency comes from doncha know.
I didn’t know you were a Gold Bug, Onyx! So am I. :)
0bama just has to knock off Carter, Eisenhower and Nixon and he’ll be crowned, ‘Worst Economic President Ever’!
That’s quite an accomplishment in 18 short months! *SMIRK*
http://www.miseryindex.us/indexbypresident.asp
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