John Maynard Keynes once said of inflation:
"There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose."
Neil Barofsky is resigning in style today with a scathing editorial in the NYTimes (when WILL Murdoch shut those radicals down?) in which he calls the program a FAILURE and "little more than a giveaway to Wall Street executives."
For now, the big fish are bailing out the little fish. Unfortunately, the US is the biggest fish of all and it's extremely unclear to see who exactly will be bailing us out when our rates start rising.
I think that we’re experiencing a sort of stock market survivor’s high, where investors are so relieved we didn’t crash that they’re ignoring the fact that there’s another cliff just ahead.
That chart from Tyler's article is reason enough by itself to get back to our BBB strategy (bullets, beans and bullion) and head for the fallout shelter - even without the fact that there is ACTUAL FALLOUT spreading across the globe from the STILL NOT FIXED nuclear reactor in Japan.
I don't think there's really anything an individual nation can do, not even China, when the Fed and the BOJ have their money spigots turned on full blast - everyone's going to get soaked and there's nothing they can do about it.
The Fed’s policies are pretty much the exact opposite of what our country needs to get back on it’s feet... Not surprisingly, the markets are flying on the doomed Dollar.
Speaking of inflation – let’s consider this chart (from Doug Short) and what complete and utter bullshit the CPI is! Very simply, without looking at anything else – it’s housing. Housing is 42% of the CPI and declining housing costs have masked rising inflation for 5 years now.
This is not "Commie talk" people. If you are not one of the Forbes 400 you are either a victim or a victim-in-waiting because what do you think the 400 will do when the bottom 90% are bled dry?
The US is now being run by an oligarchy, with lip service being paid to the electorate in allowing the people to vote for the candidates that the parties and the powers will put forward. There will be no recovery for the middle class until they assert themselves. I know I have stated this often in my tag phrase, “The banks must be restrained…”
Right now there is a mass exodus out of the city of Tokyo. But not everyone can leave the city. There are over 30 million people living in and around Tokyo. So where in the world could you possibly put 30 million refugees?
