Winding Road

Inflation, Deflation, Stagflation: I call it wealth confiscation

This economic mess is getting bigger.  The cost-of-living pain being inflicted through the destruction of our currency is staggering.

Its called wealth transfer, I call it confiscation.

The government creates the myth of inflation, that prices can only go up, while in fact their money printing and easing is the inflation.

***Get that: the printing/easing/debasement is the inflation, higher prices the result***

(remember money is a commodity, subject to the same laws of supply and demand as anything else, more supply and its value falls)

Printing & Easing = Lower Dollar
Lower Dollar = Higher Prices
Higher Prices = Less purchasing power
Less purchasing power = lower standard of living for avg. Americans

The daisy chain goes something like this:

*Govt. overspends and over benefits itself, going hugely in debt (remember a govt. does not create or make anything, they live off our taxes, off our hard work).

*Govt. prints money, trying to hide its debt (inflate its way out of overspending).

*Prices rise because of the printing & easing, the Govt. claims its from real demand, but is phony.

*Now the govt. claims that costs have risen, that running the govt is more expensive, so they need to raise taxes.

*Govt. kicks back some of the money to the unions, wealthy and other connected individuals to ensure re-election (Many forms:  subsidies, tax breaks, campaign advertising, pork barrell projects, etc,  you name it).

*The gravy train recipients use the taxpayer money and lobbyists to get their causes at the top of the next political agenda.

*Repeat, over and over!

The rich and politicians keep more and more. Every printing and easing cycle allows the well-to-do and connected, to increase their wealth.

As the dollar gets devalued repeatedly, on a relative basis the wealthy can still spend and consume, buying up more and more of the means-of-production (relegates average citizens to servitude/serfdom in a way).

The latest example is the housing market.  A large percentage of the average population is stuck renting apartments and leasing, as the wealthy run around buying up all of the property (cherry-picking) at great prices (transfer of wealth).  And, NO people not paying their mortgages are are not justified either, that is just as wrong.

Happens over and over, its just a different asset class each time.

Tell the govt. to stop devaluing your money. Stop creating bubbles.  Remind them that they work for you, the taxpayer. Make them live with in a budget.

Why do I write this. I must share it!  It feels like a duty.  I only hope that in some small way it helps others by creating awareness.

"I am only one, but still I am one. I cannot do everything, but still I can do something; and because I cannot do everything, I will not refuse to do something that I can do. "
Helen Keller

 

Reading for those interested in learning more:  (no particular order)

The Inflation Tax

The Economy Is Sliding Into a Stagflationary Spiral

Big Five Most Vulnerable to Derivatives

Taleb Says Fed Doesn't Understand Risks of Quantitative Easing

(Video) DJIA Priced in Gold: What It Means for the Long-Term Trend

Inflation (monetary) Is Not Inflation (price)

The Accidental Egalitarian: Technology and the Distribution of Income

Private equity's egregious tax loophole

Here's Why The US Is Screwed

Bill Gross: The leader Treasury, Fed needs Commentary: We need new blood to save investors, retirees

 

 

 

 

 

 

 

 

 

 

 

The Biggest Bailout Yet: Yen up Dollar down

Americans should be very concerned about their currency.

The unwinding of the Yen carry trade should have happened.   The worlds financial elite have been shorting and leveraging up in Yen for 15 years plus.

But, instaed a bailout, Yen intervention.

Since Thursday, the Yen annd Dollar have fallen against the worlds currecnies,  But, looking at the Yen/Dollar in isolataion, it shows a differnt story.

Nothing but Yen/Dollar up.  Which means, the Yen up & Dollar down. Both are falling against the world, but the dollar is falling faster then the Yen.

The big boys (G7) are being allowed to roll their levergae from short Yen into short Dollars.

 

Great read, especially the first page. Read and share.

Crony Capitalism Strikes Again

"In any event, the yen intervention certainly had nothing to do with the evident distress of the Japanese people. What happened is that one of the potent engines of the global carry-trade -- the massive use of the yen as a zero cost funding currency -- backfired violently in response to the unexpected disasters in Japan.

Accordingly, this should have been a moment of condign punishment -- wiping out years of speculative gains in heavily leveraged commodity and Emerging Markets currency and equity wagers, and putting two-way risk back into the markets for so-called risk assets. Instead, once again, speculators were assured that in the global financial casino operated by the world’s central bankers, the house always has their back---this time with an exchange rate cap on what would otherwise have been a catastrophic surge in their yen funding costs."

 

Understanding Monetary Inflation and Monetizaton

This article on Quantative Easing is worth reading and sharing with everyone.  Even if you choose to disagree, at least you have seen the info and are informed.

Q.E. Money Printing Negative Feed Back Loop to Hyper-Inflation Oblivion

 

 

Smoke, Mirrors and Stimulus

I cannot take credit for this story.  It was posted as an anonymous comment on an investment board, but sums up the BS that has been happening for the last two years perfectly.

SMOKE and MIRRORS
 
It is a slow day in the small Saskatchewan town of Pumphandle, and streets are deserted. Times are tough, everybody is in debt, and everybody is living on credit.
 
A tourist visiting the area drives through town, stops at the motel and lays a $100 bill on the desk saying he wants to inspect the rooms upstairs to pick one for the night.
 
As soon as he walks upstairs, the motel owner grabs the bill and runs next door to pay his debt to the butcher.
 
The butcher takes the $100 and runs down the street to retire his debt to the pig farmer.
 
The pig farmer takes the $100 and heads off to pay his bill to his supplier, the Co-op.
 
The guy at the Co-op takes the $100 and runs to pay his debt to the local prostitute, who has also been facing hard times and has had to offer her "services" on credit.
 
The hooker rushes to the hotel and pays off her room bill with the hotel owner.
 
The hotel proprietor then places the $100 back on the counter so the traveler will not suspect anything.
 
At that moment the traveler comes down the stairs, states that the rooms are not satisfactory, picks up the $100 bill and leaves.
 
No one produced anything. No one earned anything. However, the whole town is now out of debt and looks to the future with a lot more optimism.
 
And that, ladies and gentlemen, is how a Stimulus package works.

 

The Definition of Inflation

We must educate everyone (even many of our politicians), starting with the definition of inflation

Monetary Inflation is the act of printing money or the debasement of the currency (loss of purchasing power) through increasing the money supply.

The result is higher prices and a lower standard of living.

Catch that: Inflation is the printing of money. The result is the higher prices.

So if we learn that, we would never let our politicians print.

The printing is the inflation. The result is higher prices, the robbing of our purchasing power.

The dirty little secret that our politicians, govt and debtors do not want the average American to learn.

Learn this, teach it to your children, teach it to everyone.

 

Politicians need to keep their hands off our money.

Nassim Taleb: “The Fed’s Business Is Price Instability”

“Assuming there is a very small risk, who is bearing that small risk? Retirees. The debasement of the currency is something that would be borne by those who were the victims will not be the ones who benefited from the crisis. The thing is that you’re trying to print money to bail out those who have made mistakes by taking a mortgage that they shouldn’t have taken…and by bankers. Who is paying the price? Retirees. And you’re debasing the currency and people who hold your currency."

 

 

Understanding Budget Deficits with Pennies

This is simply brilliant, takes 2 min to understand deficits and budget cuts.  Watch and share please.

PENNY VIDEO

 

 

Citizens Against Government Waste Videos

The CAGW is starting a new add campaign.  There are two videos that address our debt levels:

Video about China owning US Debt:  "Chinese Professor"

 

 

Here is a video on our debt that  was banned by the 3 major networks:  "The Deficit Trials."

 

 

Dan Rather did a story on the controversy of the video being banned.

Something Stinks in the Currency Markets: Monetary Inflation & Debt Monetization

These are all just my observations, thoughts and opinions.  Take them for what they are worth:

Something Stinks in the Currency Markets

It all started, WED 10/20, with comments from Geithner on the dollar, that made me think Central Banks were going to try and lock the $$$-Euro-Yen together, basically the debtor nations trying to devalue against everyone else in the world. 

 

China goes along because they win either way, by being pegged to the US dollar.  Then the China - ASEAN currency agreement, smoothed tensions and bought compliance from the rest of Asia.  Throw in the extra IMF voting rights/seats Europe transferred to China and India, and some major deal was struck.

 

This is exactly what currency markets have shown since the G20 get together and the Geithner comments that the $$$ did not need to fall against the EURO and YEN.  (all walking in lock step the last week, with the dollar just slightly weaker then the rest, check out the $$$/Yen chart, record lows).

 

Well,

 

Something else is suspicious,  the FED meeting has been scheduled for WED 11/3 for months, but in the last 10 days there have been changes.

 

The Bank of Japan has moved their meeting up to Thursday, 11/4 too.  The ECB (European Central Bank) and Bank of England have their meeting on THUR 11/ 4 as well.  (Central banks schedule)

 

It feels like some big coordinated announcement is coming.  Something huge, where they all pile on the FED QE2 plan and do a large global easing.  There could be large coordinated asset buys from the FED, ECB and Japan of non-traditional assets.  The Bank of England may even join in (remember they have a printing press too).

 

Governments and politicians are all joining hands, trying to devalue together.  Killing the dollar and purchasing power of American citizens (the people of Europe and Japan too).

 

All just to hide their government debt and overspending ways.  Remember the Bill Gross Ponzi Scheme comments this week. 

 

It is in action.  The largest wealth transfer in history.  Monetary Inflation is thievery.

Learn more about Monetary Inflation Below

See what Monetary Inflation looks like in markets, 3 min video from Robert Prechter

Quick explanation and definition of Debt Monetization

Hayek vs. Keynes, best economics lesson you could ever learn, quick music video

Why printing money and monetary stimulus does not work, The Jaguar Inflation Story

How this financial crisis is being placed on the back of US Taxpayers through Stealth Debt Monetization

Bill Gross's Ponzi scheme comments

Money Printing has been going  on for decades U. S. Debt Clock

Simon R. Mouer III, 6 page PDF on "Understanding Monetary Inflation"

Wikipedia on the Austrian School of Economics

Is the FED Co-Opting the Treasury?

Jeremy Grantham, GMO Newsletter PDF:  "Night of the Living Fed"

 

Ratigan: Foreclosure-Gate

Have to see and hear to believe it.  Watch and Share!

Ratigan