Thursday, February 24, 2011

Inflation: We Have Seen Nothing Yet

WASHINGTON - DECEMBER 07:  Federal Reserve Ban...

Reported inflation is headed higher  — much higher.
The stakes have seldom been higher.  With the unemployment rate still above 9%, and federal debt at record levels, this latest error by the monetary authorities is likely to be the most costly since the Great Inflation of the 1970s.  Monetary instability will slow employment growth and further erode confidence in government at the same time that higher interest rates will add billions of dollars to the interest cost on the national debt.  Yet, failure to act in a timely basis will lead to an even greater crisis.
When it arrives, the Federal Reserve and its defenders will call it “cost-push” inflation and blame it on economic growth, the weather, Arab sheiks, China, and perhaps greedy companies and labor unions.
The actual cause of the looming crisis is the same as the cause of the Great Inflation of the 1970’s:  a too easy monetary policy that has devalued the dollar by 40% against gold during the past two years.
More Here..


  1. Secret inflation in the downsizing of products and decreasing quality of products combined with the more measurable price increases of the same products amounts to a 20% or more inflation that is already here for most products we need. Products we don't need may have dropped some, but inflation for everything else is very high and going ballistic soon. Somebody fire the Federal Reserve before they collapse us completely.

  2. Bernanke counterfeit low interest money printing to socialize bankster losses serves the Elite but destroys middle class savings.
    While America jails more people proportionally to the population than Stalinist Russia in its Gulags even during WW2 .Even without a foreign Fascist invasion a looted country hands out government funded handouts and bonuses to its criminal banksters But no important criminals will ever go to jail.

    Are there no pitchforks or honest judges left in big farming de-industrializing America?
    Now that’s a service industry that America needs!
    Perhaps America needs to import a working French Guillotine to put next to that great French gift to once justice seeking revolutionary America ,the statue of liberty in NY?
    See the Rolling Stones story by Matt Talibi :

    “Why Isn't Wall Street in Jail?
    Financial crooks brought down the world's economy — but the feds are doing more to protect them than to prosecute them”
    First, Tallibi revealed the existence of the G.S.Squid sucking the financial lifeblood of America and indeed the world .
    AND NOW Talibi Reveals the …
    .. “Invasion of the Home Snatchers
    Instead, federal regulators and prosecutors have let the banks and finance companies that tried to burn the world economy to the ground get off with carefully orchestrated settlements — whitewash jobs that involve the firms paying pathetically small fines without even being required to admit wrongdoing.
    To add insult to injury, the people who actually committed the crimes almost never pay the fines themselves; banks caught defrauding their shareholders often use shareholder money to foot the tab of justice. "If the allegations in these settlements are true," says Jed Rakoff, a federal judge in the Southern District of New York, "it's management buying its way off cheap, from the pockets of their victims."

    …“Not a single executive who ran the companies that cooked up and cashed in on the phony financial boom — an industrywide scam that involved the mass sale of mismarked, fraudulent mortgage-backed securities — has ever been convicted. Their names by now are familiar to even the most casual Middle American news consumer: companies like AIG, Goldman Sachs, Lehman Brothers, JP Morgan Chase, Bank of America and Morgan Stanley. Most of these firms were directly involved in elaborate fraud and theft. Lehman Brothers hid billions in loans from its investors. Bank of America lied about billions in bonuses. Goldman Sachs failed to tell clients how it put together the born-to-lose toxic mortgage deals it was selling. What's more, many of these companies had corporate chieftains whose actions cost investors billions — from AIG derivatives chief Joe Cassano, who assured investors they would not lose even "one dollar" just months before his unit imploded, to the $263 million in compensation that former Lehman chief Dick "The Gorilla" Fuld conveniently failed to disclose.
    Yet not one of them has faced time behind bars.”…

  3. all preplanned. timmy say's we can handle it as we've now gone from a recovery to a real growth phase. yeppers


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