Inflation/Deflation

Core CPI [continues to rise, remaining] above the Fed's inflation target of 2%. [That being said,] how inflation is impacting our personal expenses depends on our relative exposure to the individual components. [Let's take a look at the specifics.] Words: 291

The Fed justified the previous round of quantitative easing "to promote a stronger pace of economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate". In effect, the Fed has been trying to increase inflation at the macro level, but what does an increase in inflation mean at the micro level — specifically to your household? [Let's take a look and see.] Words: 957

The primary obstacle to economic recovery is widespread insolvency among households and banks (meaning liabilities exceed assets). A consumer who is broke cannot spend, and a bank that is broke cannot lend. Devaluing the dollar would reduce the real value of the debt (increase the nominal value of the assets), rendering millions of households and most banks instantly solvent. [Let me explain.] Words: 590

I am astonished to see how much money the central banks are printing and how their balance sheets are expanding. We have the absolute perfect recipe for hyperinflation and thus a massive increase in the price of gold and silver. So said Egon von Greyerz (www.goldswitzerland.com) in edited excerpts from an interview* with King World News.  Lorimer Wilson, editor of www.FinancialArticleSummariesToday.com …

The U.S. economic and systemic-solvency crises of the last five years continue to deteriorate yet they remain just the precursors to the coming Great Collapse: a hyperinflationary great depression. The unfolding circumstance will encompass a complete loss in the purchasing power of the U.S. dollar; a collapse in the normal stream of U.S. commercial and economic activity; a collapse in the U.S. financial system, as we know it; and a likely realignment of the U.S. political environment.

The Fed is completely convinced that without an inexorably rising rate of inflation there won’t be enough money made available to finance our rapidly increasing national debt. [As such, they have just] disclosed that they now have an inflation goal of at least two percent . As a result, we are stuck with a perpetually decreasing standard of living, a middle class that is on the endangered species list and provided the holders of U.S. dollars a target rate for its destruction...[Indeed,] Bernanke’s actions are so destructive to savers that I’m sure if he were a broker, he would be telling his clients to buy more gold.

Most traders and some economists believe the Fed will step in with another round of Quantitative Easing (QE3) in the first half of 2012. This will pump up the stock market, particularly bank stocks, giving the impression that the US economy can’t be that bad, after all, [but in the process] debase the dollar and reduce purchasing power. [This, in turn, will result in higher]...inflation causing prudent investors to buy more gold. [Let me explain further what I see transpiring this quarter and why.] Words: 718

Economists are telling central banks to accelerate monetary growth even faster...to avoid a bank balance sheet implosion with all the deflationary consequences that implies. [As such,] the prospects for 2012, and thereafter, are for Total Money Supply to continue its hyperbolic trend - and when such a trend becomes established it becomes almost impossible to stop because the whole debt-based economy and the banking system would collapse. [Let me explain further.] Words: 550

Evidence shows that the U.S. money supply trend is in the early stages of hyperbolic growth coupled with a similar move in the price of gold. All sign point to a further escalation of money-printing in 2012...followed by unexpected and accelerating price inflation, followed by a rise in nominal interest rates that will bring a sovereign debt crisis for the U. S. dollar with it as the cost of borrowing for the government escalates...[Let me show you the evidence.] Words: 660

This article clearly demonstrate how the millions of investors who invested in the stock market over the past decade actually fared when their performance was measured in gold instead of dollars. You will be shocked at how poorly they (and you?) have really done and you, too, will come to the consclusion that - investing in the stock market is for losers. Words: 790