INFLATION ALERT: Obama Calls For $9 Minimum Wage, A Dormant US Inflation Indicator Just Spiked, Russia And China Are Hoarding Gold To Kill The Petrodollar, G7 Fails To Defuse Currency Tensions, Bank Of England Is Firmly On The Side of Japan, And Top Economic Advisers Warn Currency Wars Lead To Trade Wars, Which Often Lead To Hot Wars!!
This will probably be the most controversial proposal of the State Of The Union: Obama calls for a $9 minimum wage.
We know our economy is stronger when we reward an honest day’s work with honest wages. But today, a full-time worker making the minimum wage earns $14,500 a year. Even with the tax relief we’ve put in place, a family with two kids that earns the minimum wage still lives below the poverty line. That’s wrong. That’s why, since the last time this Congress raised the minimum wage, nineteen states have chosen to bump theirs even higher.
Tonight, let’s declare that in the wealthiest nation on Earth, no one who works full-time should have to live in poverty, and raise the federal minimum wage to $9.00 an hour….
If you raise one side the other would even out with it!!! The money comes from the people that buy the product and the price just rose by $1 cause of the minimum wage raise!! He does not get it!!
ART CASHIN: A Dormant US Inflation Indicator Just Spiked, And It’s Got Me Thinking Of Weimar And Zimbabwe
…That having been said, the Federal Reserve Bank of St. Louis puts out what is called the ‘Monetary Stock.’ It is the ‘raw material’ of the money supply, and it has been dormant throughout the year.
The report for the first part of this year suddenly spiked higher, and it’s something that I’m going to keep a very close look at. It may be, and there is some seasonality, but I think people need to begin watching the money supply, particularly the M2, and see if that starts to accelerate…
If the velocity of money begins to accelerate and M2 begins to move up, then you will begin to hear people talking about or at least worrying about inflation again…”
An attempt to soothe global currency tensions backfired on Tuesday as a joint statement by the world’s richest nations roiled the markets. In private, the US has been pressuring Japan’s new government to refrain from mentioning the yen as it attempts…
Mervyn King who at 5:30 am eastern delivered his inflation reporting which he said that “it’s very important to allow exchange rates to move,” adding that “when countries take measures to use monetary stimulus to support growth in their economy, then…
Will oil soon be traded in a currency that is thousands of years old? What would a “gold for oil” system mean for the petrodollar and the U.S. economy? Are Russia and China hoarding massive amounts of gold because they plan to kill the petrodollar? Since the 1970s, the U.S. dollar has been the currency that the international community has used to trade oil around the globe. This has created an overwhelming demand for U.S. dollars and U.S. debt. But what happens when the rest of the globe starts rejecting the increasingly unstable U.S. dollar and figures out that gold can be used as a currency in international trade? The truth is that it doesn’t take a lot of imagination to figure that out. Demand for the U.S. dollar and U.S. debt would fall off the map and there would be a rush into gold unlike anything we have ever seen before. So are Russia and China accumulating unprecedented amounts of gold right now because they eventually plan to cut the legs out from under the petrodollar and they want to gobble up huge stockpiles of gold before the cat is out of the bag? Of course they will never admit this publicly, but there are rumblings out there that this is exactly what is happening.
Currency War ? Trade War ? Hot War?
According to numerous high-level insiders, the global currency war is accelerating:
- Current Bundesbank president Jens Weidmann
- St. Louis Federal Reserve Bank president James Bullard
- Philadelphia Federal Reserve Bank president Charles Plosser
- Outgoing Bank of England chief Mervyn King
- Russian Central Banker Alexei Ulyakeyev
- European Central Bank board member Benoit Coeure
- Reserve Bank of Australia Governor Glenn Stevens
- Brazil’s finance minister Guido Mantega
- German chancellor Angela Merkel
- Billionaire investor George Soros
Kyle Bass, Larry Edelson, Charles Nenner, James Dines, Nouriel Roubini, Jim Rogers, Marc Faber and Jim Rickards Warn or War
We’re already at war in numerous countries all over the world.
But top economic advisers warn that economic factors could lead to a new world war.
Kyle Bass writes:
Trillions of dollars of debts will be restructured and millions of financially prudent savers will lose large percentages of their real purchasing power at exactly the wrong time in their lives. Again, the world will not end, but the social fabric of the profligate nations will be stretched and in some cases torn. Sadly, looking back through economic history, all too often war is the manifestation of simple economic entropy played to its logical conclusion. We believe that war is an inevitable consequence of the current global economic situation.
Larry Edelson wrote an email to subscribers entitled “What the “Cycles of War” are saying for 2013?, which states:
Since the 1980s, I’ve been studying the so-called “cycles of war” — the natural rhythms that predispose societies to descend into chaos, into hatred, into civil and even international war.
I’m certainly not the first person to examine these very distinctive patterns in history. There have been many before me, notably, Raymond Wheeler, who published the most authoritative chronicle of war ever, covering a period of 2,600 years of data.
However, there are very few people who are willing to even discuss the issue right now. And based on what I’m seeing, the implications could be absolutely huge in 2013.