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  #19  
Old 02-01-2010, 01:46 PM
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Re: NIA Warns Massive Inflation Could Hit the U.S.

February 1, 2010

Obama's Words Driving U.S. Dollar Higher, for Now

So far in early 2010, we have been seeing a short-term bounce in the U.S. dollar, just like we predicted in our December 21st, 'Top 10 Predictions for 2010'. One catalyst for this short-term bounce has been China's actions to cut down on lending in order to counteract their $586 billion stimulus plan, which caused China's economy to overheat and their GDP to rise by the most since 2007. Another catalyst has been comments from President Obama, which include his support of a "spending freeze" and the "Volcker Rule".

The U.S. dollar was overdue for a short-term bounce from a technical standpoint, because more people had become bearish on the U.S. dollar than ever before. The catalysts we mentioned have not changed the fundamentals of the U.S. dollar. They have only provided a short-term excuse for traders to take nominal profits on assets they perceive to be riskier, like U.S. stocks and precious metals, in order to buy what they perceive to be a safe haven, U.S. dollars.

Although for the past couple of weeks, investors have been reacting exactly like in late-2008, we don't expect to see a repeat of the financial crisis of 2008 with U.S. stocks and precious metals rapidly declining at the same time. There is simply too much excess liquidity in the system for this to happen. The next financial crisis won't be a crisis of a lack of liquidity, but will be a crisis of too much liquidity.

We have long been saying that we believe the prices of U.S. stocks to be overvalued. We expect to see precious metals prices decouple from the prices of U.S. stocks in 2010. Gold and silver provide both the safe haven investors sought in late-2008 when they mistakenly bought U.S. dollars, as well as the protection from inflation investors sought in 2009 when they mistakenly bought overvalued stocks. Inflation will become more evident to everyday Americans in the months ahead as some of those taking profits on U.S. stocks, seek to spend their U.S. dollars on consumer goods and services. When the prices of consumer goods and services begin to rapidly rise, the need to own gold and silver will become very obvious to the general population.

The current rise in the U.S. dollar and decline in U.S. stocks might actually strengthen the fundamentals of gold and silver. It is now more likely that Bernanke will continue to hold interest rates at 0% for a longer than expected period of time. Therefore, a rise in the U.S. dollar today could be setting the stage for a crash in the U.S. dollar as soon as late-2010, followed by the onset of hyperinflation.

It was just announced last week by the Congressional Budget Office that the 2010 budget deficit is expected to reach $1.35 trillion. A $1.35 trillion budget deficit assumes 2% GDP growth in 2010, which we believe is improbable. This morning it was announced by the White House that they are projecting a $1.56 trillion budget deficit this year, which accounts for a 7% increase in non-defense discretionary spending, not including costs for last year's stimulus package. With the stimulus package included, the increase in non-defense discretionary spending would equal 17%.

During his State of the Union address, Obama promised a three-year discretionary spending freeze in an effort to cut down on future deficits. However, this spending freeze won't begin until 2011 and it excludes defense, education, as well as programs like Social Security, Medicare and Medicaid, which currently make up over $60 trillion in unfunded liabilities. If Obama was serious about cutting down on the budget deficit, he would implement dramatic spending cuts across the entire Federal Budget immediately.

Obama's new budget is projecting the deficit to decline to $1.3 trillion in fiscal year 2011 and then to $700 billion in fiscal years 2013 and 2014. This budget assumes that the economy will recover and tax receipts will rise. Unfortunately, the only reason the economy is showing signs of recovery today, is due to the Federal Reserve's 0% interest rates. Interest rates will inevitably rise a lot higher over the next few years, which will put an end to the economic recovery. Combined with the retiring babyboomers, tax receipts are much more likely to decline in the years ahead. Once you take into account the likelihood of rising interest payments on our national debt, NIA believes the U.S. is on a path towards a very minimum of $3 to $4 trillion budget deficits this decade.

Obama's support of the "Volcker Rule", which would ban banks from making speculative investments into hedge funds and private equity funds, is another example of Obama addressing the symptoms of our problems and not the underlying causes. If the government allowed insolvent banks to fail, they wouldn't be able to recklessly speculate in hedge funds and private equity funds. Smaller banks with competent management would've taken over the assets of the failed banks that had incompetent management, and today banks would be competing with each other based on safety and who takes the least risk. By the government adding more regulations to address the problems they caused, they are creating new unforeseen problems that will have to be dealt with in the future, while preventing the free market from efficiently sorting out the mess we are in today.

http://inflation.us/obamaswordsdrivi...larhigher.html



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  #20  
Old 03-13-2010, 04:33 AM
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Re: NIA Warns Massive Inflation Could Hit the U.S.

U.S. Hyperinflation Possible By Year 2015

The U.S. government this week reported a record monthly budget deficit for February 2010 of $220.9 billion. Total tax receipts for the month were only $107.5 billion compared to outlays of $328.4 billion. The total U.S. deficit for the first five months of fiscal year 2010 was $651.6 billion, with tax receipts of $800.5 billion and outlays of $1.45 trillion. The deficit was up 10.5% for the first five months of fiscal year 2010 over the same period in fiscal year 2009.

We are now at a point where if the U.S. government taxed Americans 100% of their income, the tax receipts generated would not be enough to balance the budget. Likewise, if the U.S. government cut 100% of its spending including defense, but kept paying Social Security, Medicare and Medicaid, we would still have a budget deficit. NIA believes it will be impossible for the U.S. to have a balanced budget ever again.

The U.S. national debt is now $12.55 trillion of which $8.061 trillion is public debt. Due to the Federal Reserve's artificially low interest rates of 0% to 0.25%, interest payments on our national debt last month were only $16.9 billion, an interest rate of only 2.548% on our public debt. The reason for the spread between our 2.548% interest rate on the public debt and the federal funds rate of 0 to 0.25% is that a portion of our national debt is made up of long-term bonds at higher interest rates.

Our debt ceiling was recently raised to $14.3 trillion, which we are on track to reach in less than a year, sending our public debt up to about $10 trillion. If the Federal Reserve raises the federal funds rate up to just 2% during the next year, NIA believes the interest rate on our public debt could rise to 5% and our annual interest payments will likely rise to $500 million or 23% of projected 2010 tax receipts of $2.165 trillion.

The White House is not projecting for interest payments on the national debt to break the $500 million mark until fiscal year 2014. By then, even if we go by White House projections that the deficit will be cut to $828 billion in 2012, $727 billion in 2013 and $706 billion in 2014, in 2014 we will still be looking at a national debt of over $18.5 trillion with a public portion of around $13.14 trillion. We find it shocking that the White House is projecting an interest rate on our public debt in 2014 of only around 4%.

All of this means that the While House expects the Federal Reserve to leave interest rates at artificially low levels almost indefinitely. However, we know it will be impossible for them to do so without creating a huge outbreak of inflation in the prices of food, energy, clothing, and just about everything else Americans need to live and survive. In order to prevent hyperinflation, we need interest rates to be higher than the rate of inflation.

NIA believes the real rate of U.S. inflation to already be approximately 5%. If the Federal Reserve doesn't raise the federal funds rate to above 5% in the short-term, in our opinion, an outbreak of double-digit inflation is inevitable. By 2014, it is possible the Federal Reserve will be forced to raise the federal funds rate up to above 10% and the public portion of our national debt could exceed $15 trillion. Therefore, in 2014 we could see the interest payments on our national debt reach $1.5 trillion, about triple what is currently being projected and 43% of the government's projected tax receipts that year of $3.455 trillion.

NIA believes hyperinflation is possible by the year 2015. Besides the rising interest payments on our national debt, another major catalyst for hyperinflation will be social security payments, which adjust to the CPI-index. As the government's CPI-index rises, so will the social security payments that it owes. This could cause a death-spiral in the U.S. dollar. Inflation is still the last thing on the minds of most Americans, but soon it will be their primary concern.

http://inflation.us/videos.html


Today, in 2008, the price of 1 oz. of gold hit $1,000 for the first time. In future years, this may seem like the floor price


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  #21  
Old 03-13-2010, 04:59 AM
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Re: NIA Warns Massive Inflation Could Hit the U.S.

Quote:
Originally Posted by brucefan View Post
U.S. Hyperinflation Possible By Year 2015

The U.S. government this week reported a record monthly budget deficit for February 2010 of $220.9 billion. Total tax receipts for the month were only $107.5 billion compared to outlays of $328.4 billion. The total U.S. deficit for the first five months of fiscal year 2010 was $651.6 billion, with tax receipts of $800.5 billion and outlays of $1.45 trillion. The deficit was up 10.5% for the first five months of fiscal year 2010 over the same period in fiscal year 2009.

We are now at a point where if the U.S. government taxed Americans 100% of their income, the tax receipts generated would not be enough to balance the budget. Likewise, if the U.S. government cut 100% of its spending including defense, but kept paying Social Security, Medicare and Medicaid, we would still have a budget deficit. NIA believes it will be impossible for the U.S. to have a balanced budget ever again.

The U.S. national debt is now $12.55 trillion of which $8.061 trillion is public debt. Due to the Federal Reserve's artificially low interest rates of 0% to 0.25%, interest payments on our national debt last month were only $16.9 billion, an interest rate of only 2.548% on our public debt. The reason for the spread between our 2.548% interest rate on the public debt and the federal funds rate of 0 to 0.25% is that a portion of our national debt is made up of long-term bonds at higher interest rates.

Our debt ceiling was recently raised to $14.3 trillion, which we are on track to reach in less than a year, sending our public debt up to about $10 trillion. If the Federal Reserve raises the federal funds rate up to just 2% during the next year, NIA believes the interest rate on our public debt could rise to 5% and our annual interest payments will likely rise to $500 million or 23% of projected 2010 tax receipts of $2.165 trillion.

The White House is not projecting for interest payments on the national debt to break the $500 million mark until fiscal year 2014. By then, even if we go by White House projections that the deficit will be cut to $828 billion in 2012, $727 billion in 2013 and $706 billion in 2014, in 2014 we will still be looking at a national debt of over $18.5 trillion with a public portion of around $13.14 trillion. We find it shocking that the White House is projecting an interest rate on our public debt in 2014 of only around 4%.

All of this means that the While House expects the Federal Reserve to leave interest rates at artificially low levels almost indefinitely. However, we know it will be impossible for them to do so without creating a huge outbreak of inflation in the prices of food, energy, clothing, and just about everything else Americans need to live and survive. In order to prevent hyperinflation, we need interest rates to be higher than the rate of inflation.

NIA believes the real rate of U.S. inflation to already be approximately 5%. If the Federal Reserve doesn't raise the federal funds rate to above 5% in the short-term, in our opinion, an outbreak of double-digit inflation is inevitable. By 2014, it is possible the Federal Reserve will be forced to raise the federal funds rate up to above 10% and the public portion of our national debt could exceed $15 trillion. Therefore, in 2014 we could see the interest payments on our national debt reach $1.5 trillion, about triple what is currently being projected and 43% of the government's projected tax receipts that year of $3.455 trillion.

NIA believes hyperinflation is possible by the year 2015. Besides the rising interest payments on our national debt, another major catalyst for hyperinflation will be social security payments, which adjust to the CPI-index. As the government's CPI-index rises, so will the social security payments that it owes. This could cause a death-spiral in the U.S. dollar. Inflation is still the last thing on the minds of most Americans, but soon it will be their primary concern.

http://inflation.us/videos.html


Today, in 2008, the price of 1 oz. of gold hit $1,000 for the first time. In future years, this may seem like the floor price
more gloom and doom
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  #22  
Old 03-15-2010, 09:30 AM
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Re: NIA Warns Massive Inflation Could Hit the U.S.

more doom and gloom

Glenn Beck must have written this hit piece on the all mighty USA

What a fear monger he his!

( Maybe liberals just cant read at all???? )

Credit Agency: U.S. Debt Rating at Risk --------------------------------------------------------------------------------

Top Debt Rating Enjoyed by the United States Faces a Downgrade in the Wake of Massive Stimulus Measures

(AP) The United States and Britain are more likely than Germany and France to witness an embarrassing downgrade of their top debt rating, agency Moody's Investors Service said Monday.

In a quarterly report assessing the prospects of the triple A-rated countries, including Spain and the "less fiscally challenged" Denmark, Finland, Norway and Sweden, Moody's warned that the economic recovery remained fragile in many advanced economies.

"This exposes governments to substantial execution risk in the implementation of their exit strategies, which could yet make their credit more vulnerable," says Arnaud Mares, senior vice president in Moody's sovereign risk group and the main author of the report.

Governments and central banks are looking at when and how to unwind their massive stimulus measures, which include historically-low interest rates, liquidity provisions, industry incentives and increased spending. Although some experts warn that exiting these policies too early risks creating a new economic downturn, they are also straining government finances.

http://www.cbsnews.com/stories/2010/...html?tag=stack


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  #23  
Old 03-15-2010, 06:05 PM
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Re: NIA Warns Massive Inflation Could Hit the U.S.

Quote:
Originally Posted by brucefan View Post
more doom and gloom

Glenn Beck must have written this hit piece on the all mighty USA

What a fear monger he his!

( Maybe liberals just cant read at all???? )

Credit Agency: U.S. Debt Rating at Risk --------------------------------------------------------------------------------

Top Debt Rating Enjoyed by the United States Faces a Downgrade in the Wake of Massive Stimulus Measures

(AP) The United States and Britain are more likely than Germany and France to witness an embarrassing downgrade of their top debt rating, agency Moody's Investors Service said Monday.

In a quarterly report assessing the prospects of the triple A-rated countries, including Spain and the "less fiscally challenged" Denmark, Finland, Norway and Sweden, Moody's warned that the economic recovery remained fragile in many advanced economies.

"This exposes governments to substantial execution risk in the implementation of their exit strategies, which could yet make their credit more vulnerable," says Arnaud Mares, senior vice president in Moody's sovereign risk group and the main author of the report.

Governments and central banks are looking at when and how to unwind their massive stimulus measures, which include historically-low interest rates, liquidity provisions, industry incentives and increased spending. Although some experts warn that exiting these policies too early risks creating a new economic downturn, they are also straining government finances.

http://www.cbsnews.com/stories/2010/...html?tag=stack
answer, get rid of moodys!? they serve no USEFUL purpose!? they are just pyramid scheme number whores workin for the elite rich!? they dont actually do any WORK!? off with their heads!? hang them from the town lightpost!? revolt against your enslaving capitalists america!?
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  #24  
Old 03-25-2010, 05:53 PM
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Re: NIA Warns Massive Inflation Could Hit the U.S.

We would like to provide you right now with the 10 most important NIAnswers that we have recently added to our database. Please take the time to read and enjoy!

1) Is there any kind of signal to look out for that would indicate that hyperinflation is close, or will it just all of a sudden happen one day and catch everyone off guard?

We see many signals that hyperinflation is almost here already. The price of gold has been rising to record nominal highs. Stocks have been rising despite rapidly deteriorating fundamentals. College tuition and health care costs are surging to astronomical levels. Social security is now paying out more money than it takes in. Our budget deficits are reaching record highs. Our national debt growth is rapidly accelerating. China is diversifying out of their U.S. treasury holdings.

Hyperinflation can literally occur at any time now. It will catch most people off guard, but not NIA members because we see all of the signals that the mainstream media is ignoring. It is important for us to prepare as if hyperinflation will be here tomorrow.

2) What do you think about the recent appreciation in the U.S. dollar?

The U.S. dollar index has only been rising because it is heavily weighted against the Euro. With the debt crisis in Greece, many investors have been shorting the Euro, which has caused the U.S. dollar index to rise. However, the price of gold has held strong around $1,100 per ounce, which shows the U.S. dollar in reality hasn't been appreciating in value at all.

3) What has happened in other countries when an 'inflationary holocaust' wreaks havoc on pricing? Will the (broke) government actually rescind the outrageous "gains" taxation and just print more money?

During historical instances of hyperinflation, the inflation took place so fast that governments funded over 99% of their spending with money printing and less than 1% through taxation.

Let's say for example you had a car that you purchased new for $20,000 and you decided to scrap it for $50,000 worth of metal. The government might force you to pay taxes on the $30,000 fantasy profit. However, if you merely delayed paying that income tax for a few months, it's possible inflation will be taking place so quickly that you will now be able to sell an old beat up pair of shoes for $50,000. Therefore, paying the tax, assuming there still was one, wouldn't be a problem at all.

4) Can you please explain how NIA estimates the real rate of inflation to be approximately 3-4% higher than what is indicated by the CPI index?

The government purposely understates inflation through the CPI index because social security and other programs adjust to the CPI index, and they want to keep payment increases for these programs as low as possible.

The CPI used to account for inflation a lot more accurately, but many revisions have been made over the years. Through geometric weighting, the CPI index today gives a lower weighting to goods that are rising in price and a higher weighting to goods that are dropping in price. They justify this by saying that if the price of steak rises, Americans are more likely to eat something that is dropping in price like hamburgers.

The government also now uses hedonics to understate inflation. Hedonics account for the increased pleasure of using goods. For example, if an oven increased 25% in price but is now more "energy efficient" the government can say the price didn't actually gain at all. Also, if the government mandates that new safety features get added to cars and car prices rise by 10%, they can say because the cars are now safer, the price didn't rise at all.

Between the geometric weighting and hedonics changes, the CPI index understates inflation by approximately 7% compared to the way inflation used to be calculated. However, some respected economists believe the old way of calculating inflation slightly overstated inflation so NIA is being conservative with our estimates that real inflation is about 3-4% higher than what's reported by the CPI index.

5) China needs the U.S. to purchase their products. Do you really think their economy will grow without selling their products overseas?

The only reason the U.S. can afford to purchase cheap products from China is because the U.S. is exporting inflation to China and China is allowing the U.S. to run huge trade deficits. When China stops artificially propping up the U.S. dollar and allows their currency to strengthen, the Chinese will be able to afford to consume their own goods that they produce. They don't need Americans to consume goods that they are perfectly capable of consuming themselves.

6) Do the other countries have to buy our debt or face the wrath of our military?

We don't believe this is true, because if other countries stop buying our debt we won't be able to afford our military. Our military is bankrupting our country and one of the main reasons we have such large deficits that will eventually lead to massive price inflation. The world does not need our military to police it. Countries like China can afford their own militaries a lot more cost effectively.

7) With the current size of our national debt, is deflation even possible?

The U.S. is the most indebted nation in the history of the world with a national debt of $12.7 trillion, Fannie/Freddie debts of $6.3 trillion and unfunded liabilities of more than $60 trillion. Our real debts are now about 600% of GDP and it will be impossible to pay them back. The U.S. will either default on its debt or print its way out of it, creating massive inflation.

Because we believe the U.S. is unlikely to admit it can't pay back its debts, inflation is clearly the solution. We don't see any risk of deflation long-term.

The mainstream media talks about deflation because they see through a rear view mirror. They see some prices having fallen after the financial crisis of 2008, but they don't realize there were temporary forces driving prices down due to artificial forced liquidations and excess inventories that needed to be worked off.

When the artificial pressures holding prices down are gone, all that will be left is the trillions of dollars of newly printed money in circulation that will chase goods and services all at once.

8) What good would it be to elect a few select people to the Senate like Rand Paul and Peter Schiff? Shouldn't we focus our energy and efforts on changing the entire system?

We believe the system is corrupt because of the Federal Reserve and its ability to manipulate interest rates and create phantom money out of thin air. Before the creation of the Federal Reserve, the value of our currency was stable and we did not have the booms and busts that we do today.

In our opinion, the system our founding fathers created would work if we only followed the Constitution. The creation of the Federal Reserve and all of the actions of the Federal Reserve are unconstitutional.

We need to do more than elect a few select people to Washington. We need to replace everybody in Washington with people who will work to protect the Constitution. If everybody in Washington was like Ron Paul, our country would not be on the verge of a hyperinflationary crisis like it is today.

It is because of the mainstream media and how they brainwash Americans, that Congress is full of people who are clueless about the economy and the root cause of all our problems. With the Internet, the mainstream media is slowly losing its power and our hope is that an increasing percentage of Americans will see our documentaries and learn to think for themselves instead of electing politicians based on what the mainstream media tells them.

9) If no governments currently back their currency with gold then why do they still hoard it?

Even though there are no currencies that are still convertible into gold, gold is real money and it is important for central banks to hold gold in order to protect the value of their foreign exchange reserves.

The average country has about 10% of their foreign exchange reserves in gold. However, China currently only has 1.5% of their foreign exchange reserves in gold and they have most of their reserves in U.S. dollars. Due to the massive monetary inflation taking place in the U.S., China's reserves are at risk and it is important for them to diversify out of their U.S. dollars and accumulate more gold.

Although the U.S. has the largest gold reserves at 8,133.5 tonnes, which makes up 68.7% of its foreign exchange reserves, the value of the U.S.'s gold and other reserves is nothing compared to its $12.7 trillion national debt plus Fannie/Freddie debt and unfunded liabilities.

10) Don't you think the short U.S. dollar/long gold trade is too crowded for it to work?

In December when everybody was bearish on the U.S. dollar, we predicted a short-term really in the U.S. dollar index in early 2010 and we were right. Today, everybody is bullish on the U.S. dollar and bearish on the Euro. Soon traders will be forced to reverse their trades and the U.S. dollar will plummet. With interest rates at 0%, it will be impossible for gold prices to crash. There is simply way too much excess liquidity in the system. The average American is still more likely to be selling their gold than buying it. There are still more Americans looking to invest into Real Estate foreclosures, than precious metals. We have a dollar bubble, not a gold bubble.

The National Inflation Association
http://inflation.us


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Old 04-15-2010, 05:04 PM
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Re: NIA Warns Massive Inflation Could Hit the U.S.

The HIDDEN TAX that the Government doesn't want you to know about.




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Old 05-16-2010, 03:42 PM
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Re: NIA Warns Massive Inflation Could Hit the U.S.

Found an abridged 10 minute version of this very important film

NIA Meltup - Abridged




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Old 05-16-2010, 09:26 PM
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Re: NIA Warns Massive Inflation Could Hit the U.S.

this BS isn't fooling anyone bruce!? you better be gettin paid to pedal this stuff or i'll really think your a moron!? go down to your local yacht club!? see any little people there!? why's that!? cause they all gave their money to your elite fear mongering profiteers!? i could see inflation if employment went way up but we know that's not in the cards so quit bein a cheap side show PUSHER!?
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Old 05-26-2010, 04:48 PM
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Re: NIA Warns Massive Inflation Could Hit the U.S.

As the last of the Obama zombies finish their beer and focus in on who is going to win Dancing with the Stars, people who understand economics and tell the truth , are preparing friends and family for the crash landing



Don't Doubt Bernanke's Ability to Create Inflation
With the Dow Jones now down 11% nominally from its high last month, NIA has been getting hundreds of emails and phone calls asking if there is any way we could be wrong about the threat of hyperinflation in the U.S. and if indeed deflation is the real problem we need to be worried about. The names Nouriel Roubini, Robert Prechter, and Harry Dent get mentioned to us a lot, with many NIA members asking why these so-called "experts" believe deflation is in our future.

Roubini, Prechter and Dent have been wrong about the overwhelming majority of their economic forecasts over the past decade. When it comes to their latest predictions about deflation, they will actually be right to some extent. We will see deflation in some assets like stocks and Real Estate, but only when priced in terms of real money - gold and silver. In terms of dollars, prices for pretty much all goods and services are guaranteed to rise dramatically over the next few years. Creating inflation is the only thing in the world Federal Reserve Chairman Ben Bernanke knows how to do and is good at.

During the past week, the mainstream media has shifted from saying we are experiencing an "economy recovery" to now saying we are at risk of a "double dip recession". Nothing fundamentally has changed in our economy. The fact is, the U.S. economy has been in a recession since mid-2000. All government reported positive GDP growth since mid-2000 has been due to nothing but inflation. Our economy should have experienced a depression in 2001 and an even greater one in 2008, but the depression has been temporarily avoided at the expense of an inevitable Hyperinflationary Great Depression down the road.

NIA believes it is impossible for the U.S. to experience price deflation when the Federal Reserve has held interest rates at 0% for the past 17 months. Sure, there will probably be a second wave of mortgage defaults that could cause another round of forced liquidations on Wall Street, but during any future period of forced liquidations, we doubt the U.S. dollar will still be looked at as the "safe haven" it was in 2008/2009. Gold and silver will soon be looked at as the only real safe havens because they are the only assets that provide protection from both a deteriorating economy and massive inflation. Precious metals will decouple from the Dow Jones and we will begin to see gold and silver rise at the same time as the stock market falls.

Bernanke was questioned yesterday following a speech at the Bank of Japan about whether a 4% inflation target would be better than the Fed's current inflation target of 2%. Bernanke responded that "it would be a very risky transition" if the Fed changed their inflation target, claiming that U.S. inflation expectations are currently "very stable". (NIA estimates the real rate of U.S. price inflation is already north of 5%.)

Unfortunately, no policymaker in the world is smart enough to accurately control the rate of price inflation through the manipulation of interest rates, and certainly not Bernanke. It's mind-boggling to us how the mainstream media could believe anything Bernanke says about inflation after how wrong he has been about everything else. Maybe the press has already forgotten that it was Bernanke who in July of 2005 said, "it's a pretty unlikely possibility" that home prices will decline across the country, "house prices will slow, maybe stabilize but I don't think it's going to drive the economy too far from its full employment path". We are 100% sure that Bernanke will be proven wrong again when it comes to inflation.

The U.S. Dollar Index has rallied from 75 to 87 since December and is approaching its high from March of 2009 of 89. This has given Bernanke the cover to keep interest rates at a record low 0%, but NIA believes Bernanke is misreading these economic signals. When the U.S. Dollar Index reached its high last year of 89, gold was only $900 per ounce. Today, gold is approximately $1,200 per ounce. The fact that gold has held up so strong despite a rapidly rising U.S. Dollar Index, proves that our financial system is getting ready to overdose on excess liquidity. The U.S. Dollar Index has rallied only because it is heavily weighted against the Euro. The Euro is now overdue for a huge bounce, which we believe will send the U.S. dollar crashing while sending gold to new record highs.

It's not good for us to pay too much attention to short-term volatility in the financial markets. Short-term "noise" often causes investors to second guess what they know is true. In our new documentary 'Meltup' (which has now surpassed 441,000 views in 10 days) we said, "If stocks were to see a nominal decline one last time, we will likely see Bernanke shoot up his largest ever dose of quantitative easing, which could turn the current Meltup into hyperinflation."

We are seeing signs of this coming true already. Washington is now calling for another stimulus. Larry Summers, senior economic adviser to President Obama, has asked Congress to begin drafting a new stimulus bill in an attempt to prevent a "double dip recession". The proposed size of this new stimulus is so far only $200 billion, much smaller than the last $787 billion stimulus bill. However, we are sure Congress will increase the size of it, especially if stocks continue their nominal decline. The new stimulus bill will likely coincide with trillions of dollars in additional quantitative easing by the Federal Reserve.


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  #29  
Old 05-27-2010, 02:03 PM
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Re: NIA Warns Massive Inflation Could Hit the U.S.

Quote:
Originally Posted by brucefan View Post
Thanks Uncle Barak!


NIA Warns Massive Inflation Could Hit the U.S.
Thu Mar 12, 12:35 pm ET

To: POLITICAL EDITORS


Contact: Gerard Adams, +1-862-220-8808, Editor@inflation.us


FORT LEE, N.J., March 12 /PRNewswire-USNewswire/ -- The National Inflation Association today released the following statement to its http://inflation.us members:


"The United States today is in a short-term deflationary phase caused by forced liquidations, de-leveraging, going out of business sales, and other temporary factors.


It is our belief that the monetary policies of the Federal Reserve and United States Treasury will soon put an end to this deflationary phase, and we will see massive inflation in the U.S. that could ultimately lead to Zimbabwe-style Hyperinflation.


Total funds allocated by the Federal Reserve and United States Treasury during the financial crisis have now reached $10.3 trillion. Although only $2.6 trillion or 25.5% of these funds have so far been spent, it is our belief that the Federal Reserve has been taking worthless assets onto its balance sheet. Not only is it possible that the whole $10.3 trillion will be spent, but this could be just the tip of the iceberg.


The United States currently has an $11 trillion national debt which it has no way of paying back. Sure, we have an annual GDP of $14 trillion, but most of this comes from consumption and not production.


In the year 2000 when the United States was facing a bursting dot-com bubble, former Federal Reserve Chairman Alan Greenspan lowered interest rates from 6.5% down to 1%. The inflation Alan Greenspan created did not go back into dot-com stocks, but instead went into Real Estate and created the housing bubble. By current Federal Reserve Chairman Ben Bernanke taking interest rates from 5.25% down to 0-0.25%, we believe the Federal Reserve did not learn from its previous mistakes and is creating the next bubble. This time, instead of money flowing back into Real Estate, it is our belief that Americans will want tangible assets for their Dollars that they can hold in their hands, and we could see a rush into Gold and Silver.


The world is currently hoarding their U.S. Dollars because they perceive it as a safe haven. The fact is, the U.S. Dollar is fundamentally no different than the Zimbabwe Dollar. It is a fiat currency that is backed by nothing but confidence that its supply will be kept scarce and it will always be accepted as money.


However, with Ben Bernanke and Treasury Secretary Timothy Geithner seemingly willing to bailout every single financial institution in America due to unfounded fears of systemic risk, the confidence people have in the U.S. Dollar could quickly evaporate.


House Speaker Nancy Pelosi said on Tuesday that another stimulus package might be needed to help the economy and she directed House Appropriations Committee Chairman David Obey to begin drafting a new stimulus proposal.


Well, we all know that President Bush's $170 billion stimulus led to oil and food prices surging to record highs. We haven't even begun to feel the inflation that is coming from President Obama's $787 billion stimulus. With another stimulus already being considered and no one there to keep Nancy Pelosi in check, we are practically guaranteed to see massive inflation down the road that could wipe out the savings of most Americans."


Sign-up at http://inflation.us today to have future National Inflation Association updates emailed to you for free.


About us:


The National Inflation Association is an organization that is dedicated to preparing Americans for hyperinflation. The NIA offers free membership at http://www.inflation.us and provides its members with articles about the economy and inflation, news stories, important charts not shown by the mainstream media; YouTube videos featuring Jim Rogers, Marc Faber, Ron Paul, Peter Schiff, and others; and profiles of gold, silver, and agriculture companies that we believe could prosper in an inflationary environment.



I quess a simple analogy would be:

Dollar Tree Stores.... Everything in the store is $1.00 each
with Hyperinflation:
Dollar Tree Stores.....Everything in the store is $2.00 each

I quess they will have to change the name because it will no longer be a dollar store.
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  #30  
Old 06-04-2010, 05:12 PM
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Re: NIA Warns Massive Inflation Could Hit the U.S.



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  #31  
Old 06-16-2010, 03:02 PM
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Re: NIA Warns Massive Inflation Could Hit the U.S.

Important economic events since the release of Meltup. Become a member of NIA for free at http://inflation.us



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  #32  
Old 06-16-2010, 04:26 PM
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Re: NIA Warns Massive Inflation Could Hit the U.S.

when i was a kid, we had 5 & dime stores. everything was either a nickle or a dime.



our grandchildren will think the $100 store is quite normal.


right now there isn't any inflation because so much money vanished from the stock market, real estate market and retirement funds. the government can keep on printing it and passing it out until the total money supply is back to where it was, without causing price inflation.

nobody wants deflation because then, the national debt would have to be paid with real money from everybody doing real work.



Last edited by mumbles : 06-16-2010 at 04:33 PM.
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  #33  
Old 06-16-2010, 05:13 PM
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Re: NIA Warns Massive Inflation Could Hit the U.S.

I think growing up as a kid you just accepted and learned in school , inflation was some sort of a natural occurrence , like the seasons changing

Little did I know that the progressive movement was destroying our currency, and enslaving the poor

If there is no inflation, why is gold going up?


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  #34  
Old 06-16-2010, 06:12 PM
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Re: NIA Warns Massive Inflation Could Hit the U.S.

yo bruce, do you hang at kitco or gold eagle!? i used to love to read the editorials, still do occasionally!? tell me when it hits 10,000, i'll be stinkin rich!? and still alive hopefully!?

http://www.kitco.com/ind/Lewitt/jun142010.html
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Last edited by lexx : 06-16-2010 at 08:57 PM.
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  #35  
Old 08-06-2010, 11:43 AM
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Re: NIA Warns Massive Inflation Could Hit the U.S.

Japan: America's Lost Decade



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  #36  
Old 08-06-2010, 12:05 PM
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Re: NIA Warns Massive Inflation Could Hit the U.S.

Quote:
Originally Posted by brucefan View Post
I think growing up as a kid you just accepted and learned in school , inflation was some sort of a natural occurrence , like the seasons changing

Little did I know that the progressive movement was destroying our currency, and enslaving the poor

If there is no inflation, why is gold going up?
Inflation's always a lib thing. I get my gold advice from Glenn.



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