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Inflation? What inflation?


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The real inflation rate is higher than the present gov. calculation. The way inflation is calculated has been changed many times. At some point we are going to have an inflation that will make mr. peanut look like a financial genius. The seeds of the coming inflation are being sowed right now. An inflation is part of the plan. Fixed rate bonds will be paid back with dollars not anywhere near the value of the dollars when the bond was issued. Inflation is the enemy of banks. The fed will start to raise interest rates to cover the declining value of the dollar. Start to protect yourself now. I am not a gold bug. Plenty of money can be made by the informed investor. Look to what happened during mr. peanut. An example. When interest rates passed %10 on the way up to %12 and higher Zero coupon bonds were good for some people. Educate yourself in ways to make money in an inflation. It is coming.

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Monetizing the debt devalues the dollar where it requires more dollars to purchase the same items without the cost of those items being increased.

 

What difference does it make if the items went up in value or the dollar loses value, same affect. Takes more money to buy the same things as before.

 

Just a different interpretation of the same results. Reality makes fools of everyone fiollowing orders without questioning the balance of everything taking place currently.

 

Stop thinking outside self containment, it keeps ancestry misguided every ancestor added to the atmosphere.

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The real inflation rate is higher than the present gov. calculation. The way inflation is calculated has been changed many times. At some point we are going to have an inflation that will make mr. peanut look like a financial genius. The seeds of the coming inflation are being sowed right now. An inflation is part of the plan. Fixed rate bonds will be paid back with dollars not anywhere near the value of the dollars when the bond was issued. Inflation is the enemy of banks. The fed will start to raise interest rates to cover the declining value of the dollar. Start to protect yourself now. I am not a gold bug. Plenty of money can be made by the informed investor. Look to what happened during mr. peanut. An example. When interest rates passed %10 on the way up to %12 and higher Zero coupon bonds were good for some people. Educate yourself in ways to make money in an inflation. It is coming.

 

True. You have to get some of your assets overseas to protect them.

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Inflation is not the action of president, but of Congress and more importantly, the Federal Reserve.

 

 

Since the creation of the Federal Reserve in 1913, the US Dollar has lost a whopping 97% of its value.

 

 

The reason is quite simple, without using any of the economic jargon here's how it works.

 

The government decides it needs money. It tells the Federal Reserve it needs money. The Federal Reserve then prints money out of thin air, buys Federal Bonds, and charges interest.

 

Every one dollar the FED prints siphons value from the rest of the dollars in circulation. So new dollars gain value and existing dollars lose value.

 

Debt is money, money is debt.

 

If we were to pay back all the debt, there would not be 1 dollar in circulation. Those getting ahead of me now see the scam.

 

That's right, if we were to repay the principle of our debt, there would be no physical currency to repay the interest. Unless of course, you ask the FED to print more, which is only going to create more interest to pay off interest + principle. It is untenable.

 

So Congress and the Federal Reserve are swapping cocktail napkins with monetary amounts written on them and we get money printed out of thin air backed only by other money already in existence which all of it was printed out of thin air out of debt. In other words, money has no real value as debt isn't something you can go physically touch. It exists only in the metaphysical world.

 

Sooner or later this entire system will collapse, it came close during the Great Depression, and several recessions since then. It is only a matter of time before another global great depression and no one is sure our monetary system and by proxy the global monetary system, will survive it.

 

Unfortunately for most people, starvation, disease, famine, and privation will be our only reward when the house of cards collapses.

 

-NW

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Prudent Citizens who live outside of the cities understand what may happen. I live in a small town about 15 miles from the nearest city. People out here are self sufficient. Lots of farming and vegetable gardens. Some people preserve food for the winter. Food is already being stockpiled. Freeze dried food keeps for quite a while. Canned goods last years. People would be quite surprised at the survivalist mentality in some parts of the country. Lots of veterans here from the Korean war thru the sandbox including myself from Vietnam. The army taught me and all the others the methods of staying healthy in an inhospitable environment without a lot of supplies. People have saved antibiotics and pain killers from prescriptions. My town is armed to the teeth. I have a scoped M-14 and a Browning High Power. Many own bolt action rifles, shotguns, pistols and assault rifles. Woman here have gun permits and know how to use guns. Knowledge of hunting techniques are common. People here have stored ammunition as the gov. is trying to raise prices on ammo. In the cities there will be chaos. Starvation and disease will rule. The hood will empty out looking for food. They will be heading in my direction. Residents in these small towns will band together to defend their families. Organized combat veterans, knowing the lay of the land, armed to the teeth are not going to roll over for ghetto rats looking to take food from their families. The fed and the know nothing president are setting the country up for an economic collapse. I hope it does not happen during my lifetime. People living in large cities might want to think about getting out now. Living in the country is a beautiful thing.

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Inflation is not the action of president, but of Congress and more importantly, the Federal Reserve.

 

 

Since the creation of the Federal Reserve in 1913, the US Dollar has lost a whopping 97% of its value.

 

 

The reason is quite simple, without using any of the economic jargon here's how it works.

 

The government decides it needs money. It tells the Federal Reserve it needs money. The Federal Reserve then prints money out of thin air, buys Federal Bonds, and charges interest.

 

Every one dollar the FED prints siphons value from the rest of the dollars in circulation. So new dollars gain value and existing dollars lose value.

 

Debt is money, money is debt.

 

If we were to pay back all the debt, there would not be 1 dollar in circulation. Those getting ahead of me now see the scam.

 

That's right, if we were to repay the principle of our debt, there would be no physical currency to repay the interest. Unless of course, you ask the FED to print more, which is only going to create more interest to pay off interest + principle. It is untenable.

 

So Congress and the Federal Reserve are swapping cocktail napkins with monetary amounts written on them and we get money printed out of thin air backed only by other money already in existence which all of it was printed out of thin air out of debt. In other words, money has no real value as debt isn't something you can go physically touch. It exists only in the metaphysical world.

 

Sooner or later this entire system will collapse, it came close during the Great Depression, and several recessions since then. It is only a matter of time before another global great depression and no one is sure our monetary system and by proxy the global monetary system, will survive it.

 

Unfortunately for most people, starvation, disease, famine, and privation will be our only reward when the house of cards collapses.

 

-NW

That is a very well-written summary of the Fed. And completely accurate.

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Submitted by Simon Black via Sovereign Man blog.............

 

As the saying goes, ‘desperate times call for desperate measures.’

 

The phrase is bandied about so frequently, it’s generally accepted truth. But I have to tell you that I fundamentally disagree with the premise.

 

Desperate times, in fact, call for a complete reset in the way people think. Desperate times call for the most intelligent, effective, least destructive measures. But these sayings aren’t as catchy.

 

This old adage has become a crutch– a way for policymakers to rationalize the idiotic measures they’ve put in place:

 

Inflation-adjusted interest rates that are… negative.

 

Trillion dollar deficits.

 

Endless wars and saber-rattling

 

Unprecedented expansion of central bank balance sheets.

 

DIRECT CONFISCATION of people’s bank accounts.

 

But hey… desperate times call for desperate measures. I guess we’re all just supposed to be OK with that.

 

One of those desperate measures that’s been coming up a lot lately is the re-re-re-introduction of capital controls.

 

It started in late 2012, when both the European Central Bank and the International Monetary Fund seperately endorsed the use of capital controls.

 

For the IMF, it was a staunch reversal of its previous position, and Paul Krugman lauded the agency’s “surprising intellectual flexibility” a few days later.

 

The IMF then followed up in 2013 with another little ditty proposing a global wealth tax. The good idea factory is clearly working ’round the clock over there.

 

Lately, two more leading economists– Harvard professors Carmen Reinhart and Ken Rogoff– have joined the debate.

 

In a speech to the American Economic Association earlier this month, the pair suggested that rich economies may need to resort to the tactics generally reserved for emerging markets.

 

This is code for financial repression and capital controls.

 

The idea behind capital controls is simple: create barriers to restrict the free flow of capital. And if you’re on the receiving end, capital controls can be enormously destructive.

 

But for politicians, capital controls are hugely beneficial; once they trap funds within their borders, the money can be easily taxed, confiscated, or inflated.

 

Historically, capital controls have been used in ‘desperate times’. Too much debt. Too much deficit spending. Wars. Huge trade deficit. Intentional currency devaluation. Etc.

 

Does any of this sound familiar? It’s no surprise that policymakers have once again turned to this ‘desperate measure’. They’re already here.

 

Iceland has capital controls, over five years after its spectacular meltdown. We can also see capital controls in Cyprus, India, Argentina, etc.

 

I’ve been writing for years that capital controls are a foregone conclusion. This is no longer theory or conjecture. It’s happening. And every bit of objective evidence suggests that the march towards capital controls will quicken.

 

This is a HUGE reason to consider holding a portion of your savings overseas in a strong, stable foreign bank where your home government won’t as easily be able to trap your savings.

 

Other options including storing physical gold (even anonymously) at an overseas depository. Or if you’re inclined and tech savvy, you can also own digital currency.

 

But perhaps the best way to move some capital abroad is to own foreign real estate, especially productive land.

 

Foreign real estate is not reportable. It’s a great store of value. It generates both financial profits and personal resilience. It’s a LOT harder to forcibly repatriate. And it ensures that you always have a place to go in case you need to get out of Dodge.

 

Even if nothing ‘bad’ ever happens, you won’t be worse off for owning productive land in a thriving economy.

 

Like I said– desperate times don’t call for desperate measures. More than ever, it’s time for a complete reset in the way we look at the most effective solutions. These options are certainly among them.

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Inflation is not the action of president, but of Congress and more importantly, the Federal Reserve.

 

 

Since the creation of the Federal Reserve in 1913, the US Dollar has lost a whopping 97% of its value.

 

 

The reason is quite simple, without using any of the economic jargon here's how it works.

 

The government decides it needs money. It tells the Federal Reserve it needs money. The Federal Reserve then prints money out of thin air, buys Federal Bonds, and charges interest.

 

Every one dollar the FED prints siphons value from the rest of the dollars in circulation. So new dollars gain value and existing dollars lose value.

 

Debt is money, money is debt.

 

If we were to pay back all the debt, there would not be 1 dollar in circulation. Those getting ahead of me now see the scam.

 

That's right, if we were to repay the principle of our debt, there would be no physical currency to repay the interest. Unless of course, you ask the FED to print more, which is only going to create more interest to pay off interest + principle. It is untenable.

 

So Congress and the Federal Reserve are swapping cocktail napkins with monetary amounts written on them and we get money printed out of thin air backed only by other money already in existence which all of it was printed out of thin air out of debt. In other words, money has no real value as debt isn't something you can go physically touch. It exists only in the metaphysical world.

 

Sooner or later this entire system will collapse, it came close during the Great Depression, and several recessions since then. It is only a matter of time before another global great depression and no one is sure our monetary system and by proxy the global monetary system, will survive it.

 

Unfortunately for most people, starvation, disease, famine, and privation will be our only reward when the house of cards collapses.

 

-NW

Good analysis!

 

Buy physical GOLD and SILVER!

 

You cannot manufacture gold or create it out of nothing like fiat paper money.

 

The price is comparatively low now, but we are headed into much higher prices soon. Many gold mines have been shut down at $ 1300/oz. which will only create a shortage to boost prices soon.

 

I don't care what the central banks do,as they cannot corner the market for gold in the long run to depress prices.

 

When the SHTF, gold will skyrocket to over $ 10,000/oz, as a new world currency will come.

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