High Probability Of The First Part Of The Collapse In The Fall, Easy Monetary Policy Is Now Showing Up In Prices, Gold Will “Go To Infinity, Because the Dollar Will Collapse Totally”
In this report we will discuss the latest news on the economic collapse. Corporate earning are in and they are dismal. Major corporations have missed expectations. The FED is reporting that they will still taper but they are not on any time schedule. This fall there is a high probability of a collapse which will suck the wealth away from most Americans. In 2008 the crash stole approximately 38% of Americans wealth, this time it be even more. The NDAA has been reinstated and the government is preparing for the first part of the collapse this fall.
Stagflation: The Fed’s worst nightmare
Commentary: Easy monetary policy is now showing up in prices
While unemployment remains stubbornly high, inflation has suddenly begun to rise.
If you look at the price indexes on a year-over-year basis, most measures of inflation seem to be subdued. This is even more so when you examine the so-called “core” rate of inflation, which excludes food and energy.
But we all have to consume food and energy, and as far as most people are concerned, it’s what’s happening now that matters more than what took place this time last year. Read “For home prices, it’s back to 2005.”
That said, an examination of the latest readings of two widely watched indexes, the producer price index and the consumer price index, reveal a rather disturbing trend. Inflation is slowly but surely returning. What do you think? Take our poll: What should the Fed fear most? Inflation or deflation?
Wholesale prices in June surged for the second straight month, rising a whopping 0.8%, the fastest rate since last September. For their part, consumer prices jumped 0.5% in June, the most since February, and matching the monthly gains posted last August and September.
Looking back, this should be no surprise. The degree of monetary ease emanating from the Federal Reserve these past few years has been nothing short of astounding.
As the great economist and Nobel laureate Milton Friedman famously said: “Inflation is always and everywhere a monetary phenomenon.” Simply put, what we’re seeing are the consequences of too much money chasing too few goods.
Ron Paul: Gold Will “Go To Infinity, Because the Dollar Will Collapse Totally”
The long-term is something you can get a handle on.
The short-term… I was never very good on short-term, whether it’s the stock market or what government will do. It’s just all over the place.
I think if you look at the record of the value of the dollar since the Fed’s been in existence, we have about a 2 cent dollar. You know, gold used to be $20 an ounce, so I would say the record is rather clear on the side of commodity money.
And, history is on our side… like 6,000 years of history shows that it maintains value and paper always self destructs.
I would say, long-term, as long as we have excessive spending and excessive computerized money, you’re going to see gold go up… and it could go to infinity because the dollar could collapse totally
The frightening reason the Fed’s QE program could get much, much bigger now
If you’ve been following American political theater since the start of the Global Financial Crisis in 2008, you’ve probably noticed how many (but not all) Republicans line up on the side of fiscal austerity and tight-money policies so as to limit the fiscal deficit and reduce the government debt (at least when it comes to non-military spending. And non-law enforcement spending. And non-bank-saving spending.)
Whereas the Democrats have insisted that the government needs to take on more debt and spend its way back to prosperity. In the Dems’ world view, deficits and debt don’t matter: What matters to them is how much the government is going to spend in order to “save the economy.”
But last Thursday, during the testimony Federal Reserve Chairman Ben Bernanke gave to the Senate Banking committee, Democratic senators questioned why Bernanke was thinking of tapering off the bond purchasing programs of Quantitative Easing (QE). They wondered out loud if maybe QE should continue “until the economy further improves.”
In other words, the Democrats have finally realized that…
PIMCO’s Bill Gross: Don’t believe the hype about the “end of QE”
U.S. wholesale electricity prices rise as much as 101%