Right now, the problem is deflation. Some folks think deflation will remain the problem for years.
Jim Rogers doesn't know when deflation will stop being the problem, but he knows what the next problem will be: Inflation. And he thinks it will be worse than the 1970s.
Aaron Task, TechTicker: Given the Fed's extremely easy policies, runaway government spending and shortages of many commodities, inflation pressures are building and destined to get much worse, according to famed investor Jim Rogers of Rogers Holdings.
"The Federal Reserve has laid the groundwork for some serious inflation down the road by printing all this money," Rogers says. "So have many other central banks."
Although "the U.S. government lies about inflation" in its official data, inflationary pressures are already evident in nearly everything, excluding energy, Rogers says. Inflation is "going to continue, going to accelerate," he says. "We're going to be paying more for just about everything down the road."
Asked if he foresees a 1970s-style stagflation period ahead, Rogers chuckled and gave an ominous reply: "I hope it's that good. It might be much, much worse."
Given that view, Rogers remains very bullish on commodities as we discuss in subsequent clips.
LINK HERE
While trying to figure out what is going to dominate the economy (inflation or deflation), which pretty difficult since we do not know what the Fed does behind the closed doors, try to use the same logic as an investigator in a murder case. There is no doubt that as you read these lines the crime is being committed against you and your children, not only in the States, but the World over by the Bilderberg elites. In any investigation a motive is leading factor in cracking the case. So, what is the motive of the banksters? The motive is very simple – transfer of wealth from you to them, both in the States and across the World. That is why they tied the international trade to their system. As a result, they “borrowed” tonnes of money from countries all over the World. When you owe somebody, is it in your interests that the amount that you owe devaluated? In other words, if you borrow the amount that buys a car and return the same amount, but now it buys only a loaf of bread, is it in your interest? Of course, it is. Since these people control the finances, that’s what is going to happen. Deflation is created so that these bastards could crash (trash maybe a better verb) the economies in order to acquire valuable assets at the lowest prices (for instance water infrastructure in Argentina, or land in Ukraine, or a bank in some country). So, do not sweat too much trying to figure out what is going to happen. There were 3 steps to the process.
ReplyDeleteStep 1. Creating inflation to fool the idiots around the world to invest in America
Step 2. Trash the economies to acquire valuable assets
Step 3. Creating inflation to wash off the debt.
That’s all there is to it. So, since we are not in charge of finances and apparently not up to challenging the bastards with pitchforks, plan your survival accordingly.
First post - absolutely dead on.
ReplyDeleteGood post 9:50! It is best to think of the "Bilderburgers" or "Illuminati" as metaphors for bankster oligarchs. Here is more detail about the methods and goal of the oligarchs:
ReplyDeletehttp://www.counterpunch.org/hudson02172009.html
Bottom line: oligarchs push society to a point of crisis, then collect their profits by selling their private losses to a government, which has both the taxation power to collect future wages to pay down the debts, and the police power to neutralize dissenters.
And as always, read "Creature from Jekyll Island" by G Edward Griffin to understand the history and grand architecture of the oligarchs.
Question for 9:50: did you mean to say that DEflation would "fool the idiots around the world to invest in America" instead of INflation? The illusion of a Dollar deflation would indeed make the Dollar seem more valuable and encourage buyers. The effect of deflation would also lower prices, again making assets (stocks, bonds) appear agreeable.
ReplyDeleteEither way, deflation or inflation - it's all monopoly money. Who cares about the quantity and velocity of worthless paper????
to 11:39
ReplyDeleteNo, I meant exactly what I said. Take a look at the last bubble. Inflation was created in the real estate market. Fools around the World flocked to the States to make money on “hot” market and rising house prices. Deflation will attract looter willing to risk, because no sane person would come anywhere near the United States on the brink of collapse. That is why people like Jim Rodgers took his assets out of the States and even physically moved to Singapore.
Why did I say “on the brink of collapse”? Because the first politician in any given state who will figure out that separating from the States will make his/her state free of debt is going to set the domino effect. Again, just look back at the Soviet Union. Former Soviet republics opted for a separation hoping that they were not going to be responsible for the country’s debt. And they were right. Russia alone assumed the debt. The irony of the decision was that they did manage to get out for free, that made them a very good target for IMF sharks that eventually bankrupted these countries. So much to pay for the ignorance…..
Deflation is more likely than inflation. The above article does not take into account the impact that a change in monetary and Fiscal policies, and the pullback of stimulus packages by the fed will have. The fed has for now plenty of time to react and avoid inflation, right now they are combating deflation and are preparing plan to pull back all stimulus and change policies should inflation show its nose.
ReplyDelete