America's Artificial Economy Is In Its Final Days – Here's Why!

Americans are enjoying their final days in an artificial economy that is being propped up by China and Japan… but when the bubble bursts we are going to see a societal collapse in the USA. Words: 694

So says the National Inflation Association (www.inflation.us) in a recent article* which Lorimer Wilson, editor of www.FinancialArticleSummariesToday.com, has reformatted into edited […] excerpts below for the sake of clarity and brevity to ensure a fast and easy read. (Please note that this paragraph must be included in any article reposting to avoid copyright infringement.) The National Inflation Association (NIA) goes on to say:

Never before in world history has nearly every developed country been in battle with each other to have the weakest currency. Currencies, however, are very fragile, especially when they are fiat and backed by nothing and the NIA believes that [such countries] are making the grave mistake of doing everything in their power to debase them.

Many Asian producing countries, such as Japan and China, want their currencies to be weak so that they can have the honor of shipping more of their products to Americans who can’t afford them.

Japan
In recent days, Japan has intervened in the foreign currency market to artificially drive down the value of the yen… against the U.S. dollar… in an attempt to “head off a deflation spiral” and “shore up its export-driven economy” [thereby helping] the sales of companies such as Toyota and Sony who saw their revenues decline [dramatically] as the result of the weak U.S. dollar vis-a-vis the yen.

[Had Japan not done so]… the revenues of its exporters would have continued to decline substantially, which is a healthy part of a free market economy, but within a year or two a strengthening yen would have allowed the Japanese to spend more on their own goods, and revenues for Toyota and Sony would come back strong. Unfortunately, Japan’s efforts to postpone a few Japanese corporations [from] going through a brief, but tough, readjustment period are helping to artificially prop up the standard of living for Americans one last time.

China
Although China recently made the wise decision to allow the yuan to strengthen, they haven’t allowed the yuan to strengthen fast enough. China is now facing a price inflation crisis that will soon spread to the U.S. Consumer prices in China rose by 3.5% in August compared to one year ago, the largest increase in nearly two years. On a month-over-month basis (including seasonal adjustments), consumer prices in China rose by 4.8% in August over July.

Examples of Coming Inflation
a) Wal-Mart Grocery Prices
Wal-Mart recently eliminated their “rollbacks” on grocery items in the U.S. increasing prices by a shocking 5.8% in July from June. Considering that in 29 states, Wal-Mart controls more than half the grocery market, almost all Americans are beginning to feel the effects of massive price inflation. With 70% of the goods sold in Wal-Mart made in China, NIA believes that Wal-Mart’s massive price increases for grocery items will soon spread to all other items sold. It is crystal clear for us to see what is ahead for U.S. prices of consumer goods, yet the mainstream media continues to talk about deflation.
b) Cotton Prices
Cotton prices have surged 28% during the past two months to their highest level in 15 years. That alone guarantees higher clothing prices, but combined with the wage situation in China, Americans could see an unprecedented surge in clothing prices in the months to come.

A massive outbreak of price inflation is already taking place all around us [and when Japan and China start] dumping our treasuries and the bond bubble bursts we are going to see a societal collapse in the USA.

*http://inflation.us/artificialeconomy.html

– The above article consists of reformatted edited excerpts from the original for the sake of brevity, clarity and to ensure a fast and easy read. The author’s views and conclusions are unaltered.
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