Inflation

For Those Who Don’t Understand Inflation

usissuescom Foreign Policy, Monetary Policy , , , , , ,
By Alasdair Macleod– Re-Blogged From GoldMoney

This article is a wake-up call for those who do not understand the true purpose of monetary inflation, and do not realise they are the suckers being robbed by monetary policy. With the world facing a deepening recession, monetary inflation will accelerate again. It is time for everyone to recognise the consequences.

Introduction

All this year I have been warning in a series of Goldmoney Insight articles that the turn of the credit cycle and the rise of American protectionism was the same combination that led to the Wall Street crash in 1929-32 and the depression that both accompanied and followed it. Those who follow statistics are now seeing the depressing evidence that history is rhyming, though they have yet to connect the dots. Understandably, their own experience is more relevant to them than the empirical evidence in history books.

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Red Pill Realities

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By GE Christenson – Re-Blogged From Deviant Investor

We can face reality by swallowing the “red pill” (from the movie “The Matrix). This choice is uncomfortable because it opposes the propaganda from mainstream media, government statisticians, and Wall Street cheerleaders.

The “red pill” road is difficult and sometimes lonely. Gold is a “red pill” choice.

The “blue pill” path is easier and reassuring. Other “blue pill” advocates will applaud your choices. The herd approves this delusional path. Think debt-based fiat currencies.

The “blue pill” is best swallowed with a healthy slug of whisky, anti-depressant drugs, a few hits from now-legal “weed,” and platitudes from the evening news.

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Perfect Storm Brewing For Price Inflation

usissuescom Monetary Policy, Stocks & Commodities , , , ,
By Clint Siegner – Re-Blogged From Silver Phoenix

A “perfect storm” is brewing for midwestern farmers. Unending rains have led to the flooding of tens of millions of acres of farmland. The deluge comes on the heels of years of low crop prices.

It has the makings of an agriculture disaster on a scale never seen before.

The nation may see a “perfect storm” in terms of food inflation. Prices for some farm commodities figure to be a lot higher in the months ahead as markets adjust to dramatically lower crop yields. This will be coupled with price hikes associated with tariffs on all manner of goods from China and elsewhere.

To top it off, the Fed is signaling a reversal. The next move in interest rates now figures to be lower.

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Truth, Lies And Inflation

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By GE Christenson – Re-Blogged From Gold Eagle

Christopher Whalen wrote “Trump is Right to Blow Up the Fed.” He stated:

“Anybody who cares to read the 1978 Humphrey Hawkins law will know that the Fed is directed by Congress to seek full employment and then zero inflation. Not 2 percent, but zero. Yet going back a decade or more, the Fed, led by luminaries such as Janet Yellen and Ben Bernanke, has advanced a policy of actively embracing inflation.”

From the Federal Reserve’s web site:

“The Congress established the statutory objectives for monetary policy—maximum employment, stable prices, and moderate long-term interest rates—in the Federal Reserve Act.”

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Now Even Republicans Want A Dovish Fed

usissuescom Monetary Policy , , , ,
By John Rubino – Re-Blogged From Dollar Colapse

Not so long ago, the major US political parties had very different views on monetary policy. Democrats, representing labor, wanted high government spending, low interest rates and generally easy money to create as many jobs as possible. Republicans, representing capital, wanted relatively small government, low debt and tight money to give entrepreneurs a predictable future in which to build new factories.

But that was then. Today, across pretty much the entire sitting Establishment, easy money has become the goal of monetary policy, and the Fed is being reshaped to institutionalize this bias. Consider this amazing headline and the article that explains it:

A Trump dilemma: Finding a dovish GOP ally to serve on Fed

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Show Me The Real Money

usissuescom Monetary Policy , , , , , , , , ,
By GE Christenson – Re-Blogged From Gold Eagle

I’ll show you real money. It looks like this:

Those circulating dollar bills, euros, pounds, and yen are DEBTS (notes) issued by central banks to extract wealth from citizens and the economy, dilute the purchasing power of the currency, and nourish the banking cartel.

From Graham Summers:

“The problem of course is once it has done this [created the ‘everything bubble’], the Fed will NEVER be able to normalize interest rates because the entire financial system is now addicted to extraordinarily low rates.”

“… a Fed President stated point blank that the Fed is aware that the entire US financial system is one gigantic leveraged bet on low interest rates…and as a result of this, the Fed is DONE with normalization.”

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Magic Money Tree Economics

usissuescom Monetary Policy, Taxes & Spending , , , , , , ,
By GE Christenson – Re-Blogged From Silver Phoenix

Our Current Financial Circumstances

  1. The U.S. is $22 trillion in debt and burdened with $100 – $200 trillion more in unfunded liabilities. Just to pay the interest the U.S. must borrow. Debt is rapidly rising and cannot be paid unless “they” default or hyper-inflate the dollar.
  2. Chairman Jerome Powell stated, “The U.S. federal government is on an unsustainable path.” Even the Fed admits what everyone should realize.
  3. Global debt is $250 trillion. Some countries have descended farther down the debt-paved road to economic hell than the U.S.
  4. Pensions are under-funded, student debt is a disaster, the main street economy is weak, real estate prices and sales are falling, retail sales are down, real wages have been stagnant since the 1970s, and no credible plan exists to fix debt, deficits or devaluations.
  5. The political and financial elite profit from wars, inflation, devaluation, strip-mining assets, and income inequality.
  6. It’s an ugly picture with no easy answers. But debt, deficits and QE levitated stock markets to all-time highs.

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