Tag Archives: Inflation

15 Ton Gold Repatriation Hits JP Morgan London Vaults – Wealth Cycles Article

The global trend of nations “repatriating” their gold reserves from the custodial vaults where it has long been stored continues. The issue, as WealthCycles has reported extensively, is the near certainty that not all the gold recorded to be held in the bullion banks is really there. Much of it has been pledged and repledged against the debt that keeps the world’s monetary system afloat. The more physical gold that is reclaimed and delivered to sovereign treasuries, the less that remains to back up all the pledges. When the chips are called in, many of those who believe they own gold will find themselves holding nothing but pieces of paper. At that point, “price will solve everything.”

via 15 Ton Gold Repatriation Hits JP Morgan London Vaults – Wealth Cycles Article.

Ron Paul on Jobs – Minimum Wage, Money Printing, Inflation

Mandated wages & unions hurt unprotected workers

Minimum wage laws & mandating union contracts (closed shop) are designed to help a small segment of workers gain economic advantage while actually hurting unprotected workers. Long term, even the beneficiaries suffer from the unemployment that excessive wage demands bring about. High wages are great, but if there are no jobs they become meaningless. In a free society with free markets, workers should always negotiate for the highest wage, while businesses should always strive for maximum profits. And if left to the market, the consumer will decide which businesses thrive, and wages must go up, not because of coercive legislation but because under the circumstances there would be competition by businesses to seek out the best workers and reward them with the best wages. Coerced union wages and dictated minimum wages grossly distort the market process and contribute to the malinvestment initiated by the Federal Reserve policy and guarantee that in the correction, wages must come down.

Source: Liberty Defined, by Rep. Ron Paul, p.309-310 Apr 19, 2011

via Ron Paul on Jobs.

National Inflation Association – Real Inflation and marginalizing Ron Paul

Since Obama was elected President on November 4th, 2008, the U.S. dollar has lost 48% of its purchasing power. Americans today spend 48% more for gasoline than they did the day of the last election. Americans today also spend 105% more for sugar, 78% more for coffee, 58% more for corn, with similar gains for many other agricultural commodities. The U.S. government and Federal Reserve created all of this inflation in an attempt to reinflate the Real Estate bubble, yet the median U.S. home price declined by 2.4% during this time period. Meanwhile, the real unemployment rate has increased from 16.8% to 22.3%.

via National Inflation Association.

The 12 Gold Bugs of Christmas :: Liberty Maven

Warren Buffett recently remarked that you can’t value gold like an oil company or farmland, so we should forget gold and buy equities. But he misses the point! Gold doesn’t produce value because it is value; in other words, gold is money.

It’s sad to see Mr. Buffett go to the dark side. But, as I’m about to show, he’s losing company when it comes to his views on gold.

It’s difficult to fathom why a professional money manager – someone who looks at markets all day long and tries to make money for his clients – doesn’t see the in-your-face arguments for buying precious metals. It’s borderline irresponsible. You may think that’s a strong statement, but I ask: what would you do if you were responsible for investing other people’s money and found yourself in the following investment environment:

via The 12 Gold Bugs of Christmas :: Liberty Maven.

U.S. Austerity Necessary to Prevent Hyperinflation

U.S. Austerity Necessary to Prevent Hyperinflation
In NIA’s latest economic documentary ‘Meltup’, we said that the simple act of the U.S. government eliminating its $7.25 per hour minimum wage and implementing a new $7.25 per hour maximum wage for government employees, would go a long way in helping rebalance America’s unstable economy. NIA is very pleased that California Governor Arnold Schwarzenegger appears to have watched Meltup. Schwarzenegger last week announced plans to cut pay for over 200,000 state employees down to the minimum wage of $7.25 per hour due to a budget impasse.
Although most expect these salaries to rise back up after California passes a new budget, NIA believes the only way California will be able to survive without a bailout from the Federal Government, is if these wage cuts are made permanent. In fact, if the U.S. government wants to have any hope of preventing and/or delaying hyperinflation from occurring by the year 2015, we believe the Federal Government will need to implement similar wage cuts on a nationwide basis within the next 24 to 36 months.
Both the U.S. dollar and Euro experienced a decline in their share of the world’s foreign-exchange reserves during the first quarter of 2010. Meanwhile, central banks reported a 19% increase in the “other currencies” category, which includes currencies like the Canadian dollar and Australian dollar. While many European countries are now making the right choice of implementing tough austerity cuts to counteract weakening demand for Euros, there have been no calls for major austerity cuts in the United States. Before long, NIA expects short-term confidence in the Euro to be restored, which could turn the U.S. dollar short-term bounce into a huge crash, exactly like NIA predicted in its top 10 predictions for 2010.
The U.S. is currently in a death spiral of accelerating national debt growth, endless deficits, and soon to be skyrocketing interest rates and massive price inflation. Beginning in late-2010/early-2011 as confidence is restored in the Euro and the spotlight is put on the U.S. debt crisis, NIA expects to see a dramatic rush out of the U.S. dollar that will accelerate going into 2012. A select group of educated Americans who reach the exit door first will become the wealthiest Americans of the future, while the rest of the country sees the purchasing power of their savings disappear.
Despite what the U.S. government would have you believe, deflation is a good thing. Our country was able to survive the Great Depression of the 1930s because we were lucky enough to have across the board price deflation. Shockingly, even back then the U.S. government took unprecedented measures in order to battle some areas of price deflation, which NIA believes prolonged the Great Depression.
During the Great Depression, the U.S. was faced with overproduction of agricultural commodities due to technological advances made during the Roaring Twenties. The one problem no American should have had at that time was finding food to eat. However, rather than let Americans eat cheap food, our government compounded problems by enacting the Agricultural Adjustment Act, which paid farmers to destroy their crops in an attempt to artificially raise agriculture prices. This led to millions of Americans overpaying for food and nearly starving to death.
The one problem no American should have today is finding shelter. The agriculture overproduction during the early years of the Great Depression pales in comparison to the overproduction of new homes the U.S. experienced this past decade. Rather than let Americans enjoy affordable housing, the U.S. government once again implemented wasteful policies such as the $8,000 home buyer tax credit in an attempt to artificially prop housing prices up. There are now hundreds of thousands of Americans who are “squatting” in homes, by occupying homes they neither own, rent or have permission to use.
Deflation is good for all Americans because it increases the purchasing power of their U.S. dollars. There were no good reasons for Americans to have gone without food during the Great Depression and to be squatting in homes today. These problems were created as a direct result of the government’s interference in the free market, as part of their ill-conceived war against deflation. If the government simply got out of the way, food would have been affordable for all Americans during the Great Depression and housing would be affordable for all Americans today.
NIA believes it is important for the government to also get out of the way when it comes to wage controls. NIA frequently tells young people that the best way to start a successful career in the U.S. is not by getting deeply into debt to attend college, but by immediately entering the workforce and gaining first hand knowledge and experience. Without a minimum wage, a recent high school graduate who wants to start a career in the oil drilling industry, could write letters to the CEOs of oil drilling companies offering his/her services for just $5 per hour. Under current labor laws, this would be illegal, even though the high school graduate would be receiving an education that is far superior to what he/she would receive in college.
NIA’s biggest fear is that the U.S. government will implement price controls during hyperinflation, by ordering stores to sell goods at government mandated prices. A couple months ago while NIA was producing Meltup, an event took place just outside of a major U.S. city that demonstrates just how devastating price controls will be on the lives of all Americans during hyperinflation. This story was largely ignored by the mainstream media, but NIA is currently producing a video that will expose the significance of what took place inside of our very own country. We will be releasing this shocking video later this month.
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U.S. Food Inflation Spiraling Out of Control

U.S. Food Inflation Spiraling Out of Control

The Bureau of Labor Statistics (BLS) today released their Producer Price Index (PPI) report for March 2010 and the latest numbers are shocking. Food prices for the month rose by 2.4%, its sixth consecutive monthly increase and the largest jump in over 26 years. NIA believes that a major breakout in food inflation could be imminent, similar to what is currently being experienced in India.

Some of the startling food price increases on a year-over-year basis include, fresh and dry vegetables up 56.1%, fresh fruits and melons up 28.8%, eggs for fresh use up 33.6%, pork up 19.1%, beef and veal up 10.7% and dairy products up 9.7%. On October 30th, 2009, NIA predicted that inflation would appear next in food and agriculture, but we never anticipated that it would spiral so far out of control this quickly.

The PPI foreshadows price increases that will later occur in the retail sector. With U-6 unemployment rising last month to 16.9%, many retailers are currently reluctant to pass along rising prices to consumers, but they will soon be forced to do so if they want to avoid reporting huge losses to shareholders.

Food stamp usage in the U.S. has now increased for 14 consecutive months. There are now 39.4 million Americans on food stamps, up 22.4% from one year ago. The U.S. government is now paying out more to Americans in benefits than it collects in taxes. As food inflation continues to surge, our country will soon have no choice but to cut back on food stamps and other entitlement programs.

Most financial experts in the mainstream media are proclaiming that the recession is over and inflation is not a problem in the U.S. Unfortunately, they fail to realize that rising food and gasoline prices accounted for 58% of February’s year-over-year 3.85% rise in retail sales. NIA believes price inflation is beginning to accelerate in many areas of the economy besides food and energy, and all increases in U.S. retail sales this year will be entirely due to inflation.

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