Inflating our way to a government controlled economy

[Dr.Who]

Spiraling food prices, record energy costs and federally mandated health insurance reflect this Administration's slavish ideological devotion to the centralized planning of key sectors of the American economy. So, what are the current results of Obama's indoctrination of America into progressive collectivism? Global food costs have risen an astonishing 29 % in the past year, and almost 4% a month between October and January of 2011. Retail prices for gasoline have doubled in the 26 months since Obama was inaugurated. And the Democratic majorities in Congress passed a mandated health insurance bill that is not only unconstitutional, but also riddled with exemptions, political payoffs while adding 159 new boards, commissions and programs.

The current quagmire of budget deficits coupled with the viral growth of the federal government continues to be carefully planned and executed. []
The first and second quartiles (the two lowest socio- economic populations) are more far more dependent on government subsidies then 26 months ago. Plus the federal government last week plummeted an additional $7.7 billion deeper into debt each day.

Yes, five dollars for a loaf of bread and six dollars for a 27.5 ounce box of corn flakes plus a few tablespoons of sugar. How absurd are these prices? Yuban coffee costs 24 cents an ounce, Frosted Flakes now costs 21.8 cent an ounce, and a loaf of bread runs 20.3 cent an ounce.[]

Maize prices have increased sharply and are affected by complex linkages with other markets. In January 2011, maize prices were about 73% higher than June 2010. These increases are due to a series of downward revisions of crop forecasts, low stocks (U.S. stocks-to-use ratio for 2010/11 is projected to be 5% the lowest since 1995), the positive relationship between maize and wheat prices, and the use of corn for biofuels. Ethanol production demand for corn increases as oil prices go up, with sugar-based ethanol less competitive at current sugar prices. Recent United States Department of Agriculture (USDA) estimates show the share of ethanol for fuel rising from 31% of U.S. corn output in 2008/9 to a projected 40% in 2010/11.

Read that stat one more time. "In January 2011, maize prices were about 73% higher than June 2010." That is a jaw-dropping annual inflation rate of 146%, for the most basic of food commodities. Corn also feeds cattle as well as making Frosted Flakes. Also, "Recent United States Department of Agriculture (USDA) estimates show the share of ethanol for fuel rising from 31% of U.S. corn output in 2008/9 to a projected 40% in 2010/11." Why does anyone think that harvesting food crops for fuel is a good idea?

http://www.americanthinker.com/2011/04/inflating_our_way_to_a_governm.html

 

[Dr.Who]

There are an awful lot of people who vote for programs like this because they think they pay no income taxes and get free services on the backs of the rich.

But who really pays for this when basic foodstuff inflates by 146%?

Lets suppose that the dollar fell 10% this year. (and 10% last year and 10% next year)

Lets suppose that you own a home or an asset or buy food.

How much less is YOUR home worth? How much more do you have to pay for food? Please post you answers on how much money you have lost.

For me a rough estimate using zillow shows that with careful avoidance of the housing collapse I was able to lose about 30k instead of the 80k I would have lost if I had not moved just before the bubble broke. An alternative way to measure the loss would be to add up my assets and subtract, maybe, 30%. That number would be higher. Even higher if the 10% guess of how much the dollar is falling per year is wrong.

And how much did the dollar really fall?

 

[TruthSeeker]

Great topic, DrWho. The left won't understand any of what you posted, of course.

But, facts are facts. We have had our homestead on the market for a year and a half. At last count, we have lowered the beginning asking price (as determined by our realtor) by 1/3, so far, and still we have not had a single offer.

My mother, who lives in Phoenix, Arizona (need I say more?) has seen the value of her home (my childhood home) drop from $230,000 to about $80,000 in the past 3-4 years.

A lot of people don't see the black clouds unless they are directly over them. There are thousands of stories in every state and every corner of this country about the economic devastation that has affected tens of millions of people.

Job losses, foreclosures, food banks closing due to lack of donations and funding, people committing suicide, families living in homeless shelters...........the fat cat politicians don't give a **** about these people, or for the people who are trying to hang on, like most of us are.

I have believed for the past 2-3 years now that this country is in an economic death spiral, and unfortunately I have been correct in my beliefs. I have sounded the warning loud and clear to everybody I know. Some have heeded by warning and accepted my advice, and some haven't. I pity those who choose to ignore the black clouds.

 

[Dr.Who]

Great topic, DrWho. The left won't understand any of what you posted, of course.

But, facts are facts. We have had our homestead on the market for a year and a half. At last count, we have lowered the beginning asking price (as determined by our realtor) by 1/3, so far, and still we have not had a single offer.

My mother, who lives in Phoenix, Arizona (need I say more?) has seen the value of her home (my childhood home) drop from $230,000 to about $80,000 in the past 3-4 years.

A lot of people don't see the black clouds unless they are directly over them. There are thousands of stories in every state and every corner of this country about the economic devastation that has affected tens of millions of people.

Job losses, foreclosures, food banks closing due to lack of donations and funding, people committing suicide, families living in homeless shelters...........the fat cat politicians don't give a **** about these people, or for the people who are trying to hang on, like most of us are.

I have believed for the past 2-3 years now that this country is in an economic death spiral, and unfortunately I have been correct in my beliefs. I have sounded the warning loud and clear to everybody I know. Some have heeded by warning and accepted my advice, and some haven't. I pity those who choose to ignore the black clouds.

All of that is in part the result of printing money. Tinkering with the economy is responsible for another part. I would even guess that some of it is due to corporatists (colusion between government and big busines) manipulating the economy knowing it will have devastating effects but just not caring as long as they get what they want.

 

[TruthSeeker]

All of that is in part the result of printing money. Tinkering with the economy is responsible for another part. I would even guess that some of it is due to corporatists (colusion between government and big busines) manipulating the economy knowing it will have devastating effects but just not caring as long as they get what they want.

You hit it right on the head. I would also add that the government has created false hope and vastly understated the economic meltdown that is well under way, by vastly understating the number of unemployed Americans and the actual inflation and cost of living numbers.

 

[Dr.Who]

You hit it right on the head. I would also add that the government has created false hope and vastly understated the economic meltdown that is well under way, by vastly understating the number of unemployed Americans and the actual inflation and cost of living numbers.

I suspect that to say it is understated might be an understatment.

If you go looking for news about the inflation and devaluing of the dollar right now you will find lots of articles but few that spell it out. Why is that?

 

[TruthSeeker]

I suspect that to say it is understated might be an understatment.

If you go looking for news about the inflation and devaluing of the dollar right now you will find lots of articles but few that spell it out. Why is that?

It's called the "pay no attention to what's behind the curtain" tactic.

You have to dig real deep to get past the Jim Cramers and the Larry Kudlows and the Tim Geithners and the CNBC talking heads, to arrive at the facts and therefore, the truth.

I subscribe to several different e-mail-driven websites that keep me apprised of what is really happening to our economy, so unlike many people who really believe that Jim Cramer knows what he is talking about, I prefer to believe what I read from people who don't have TV shows and who aren't profiting from their analyses and opinions.

 

[Gipper]

It's called the "pay no attention to what's behind the curtain" tactic.

You have to dig real deep to get past the Jim Cramers and the Larry Kudlows and the Tim Geithners and the CNBC talking heads, to arrive at the facts and therefore, the truth.

I subscribe to several different e-mail-driven websites that keep me apprised of what is really happening to our economy, so unlike many people who really believe that Jim Cramer knows what he is talking about, I prefer to believe what I read from people who don't have TV shows and who aren't profiting from their analyses and opinions.

Here are two websites worth visiting when it comes to learning the truth about what government/Fed and the corporate elite are doing to the economy.

http://www.oftwominds.com/blog.html
http://globaleconomicanalysis.blogspot.com/

This from Charles Huge Smith - "Con of the Decade" seems to ring true.
http://www.oftwominds.com/blogapril11/setup-con-of-decade4-11.html

 

[Dr.Who]

Here are two websites worth visiting when it comes to learning the truth about what government/Fed and the corporate elite are doing to the economy.

http://www.oftwominds.com/blog.html
http://globaleconomicanalysis.blogspot.com/

This from Charles Huge Smith - "Con of the Decade" seems to ring true.
http://www.oftwominds.com/blogapril11/setup-con-of-decade4-11.html

That first one really stopped me in my tracks.

I had never thought of buying the US dollar as a contrarian trade.

Though I am not a fan of making contrarian trades JUST to be contrarian. One must also have other justifications.

 

[TruthSeeker]

That first one really stopped me in my tracks.

I had never thought of buying the US dollar as a contrarian trade.

Though I am not a fan of making contrarian trades JUST to be contrarian. One must also have other justifications.

I think the whole idea of "contrarian dollar buying" is a load of crap. That sort of "plan" is the same thing that people do when they buy a new car or truck or SUV. They are buying something that will depreciate in value over time, but they don't care about that because being contrary is OK with them.

As soon as the author disclosed that he was involved in ETFs, he lost me completely. Anybody who gets sucked into ETFs is playing with fire, and paper burns very fast.

Why is it that nobody seems to understand that gold and silver are acting independently of the stock market and the U.S. dollar? Yes, gold and silver used to go up or down based on the the stock market and the U.S. dollar, but those days have been gone for over two years now.

People are buying gold and silver as an alternative asset protection tool, and as an investment that has real value, and will prove to be the only legitimate currency recognized around the world when the smoke clears. It's that simple.

All of these so-called "experts" continue to live in the past, and continue to distribute very poor advice to unsuspecting and uninformed financial novices.

 

[nobull]

It's called the "pay no attention to what's behind the curtain" tactic.

You have to dig real deep to get past the Jim Cramers and the Larry Kudlows and the Tim Geithners and the CNBC talking heads, to arrive at the facts and therefore, the truth.

I subscribe to several different e-mail-driven websites that keep me apprised of what is really happening to our economy, so unlike many people who really believe that Jim Cramer knows what he is talking about, I prefer to believe what I read from people who don't have TV shows and who aren't profiting from their analyses and opinions.

I love this post..thanks

doug

 

[nobull]

I think the whole idea of "contrarian dollar buying" is a load of crap. That sort of "plan" is the same thing that people do when they buy a new car or truck or SUV. They are buying something that will depreciate in value over time, but they don't care about that because being contrary is OK with them.

As soon as the author disclosed that he was involved in ETFs, he lost me completely. Anybody who gets sucked into ETFs is playing with fire, and paper burns very fast.

Why is it that nobody seems to understand that gold and silver are acting independently of the stock market and the U.S. dollar? Yes, gold and silver used to go up or down based on the the stock market and the U.S. dollar, but those days have been gone for over two years now.

People are buying gold and silver as an alternative asset protection tool, and as an investment that has real value, and will prove to be the only legitimate currency recognized around the world when the smoke clears. It's that simple.

All of these so-called "experts" continue to live in the past, and continue to distribute very poor advice to unsuspecting and uninformed financial novices.

I love most of this one..lol..
you are a very sharp man/woman..thats why I get concerned when you talk pro gold and silver..people are listening...

regards
doug

 

[TruthSeeker]

I love most of this one..lol..
you are a very sharp man/woman..thats why I get concerned when you talk pro gold and silver..people are listening...

regards
doug

I am a man, "doug". As I said many times, I am pro-asset preservation. For some people, that means buying gold. For me, that means buying silver.

I'm not sure if you are being sarcastic when you post that you "loved" my last couple of postings. Doesn't matter to me whether you "loved" them or not. I post what I believe, and let the chips fall where they may.

 

[nobull]

I am a man, "doug". As I said many times, I am pro-asset preservation. For some people, that means buying gold. For me, that means buying silver.

I'm not sure if you are being sarcastic when you post that you "loved" my last couple of postings. Doesn't matter to me whether you "loved" them or not. I post what I believe, and let the chips fall where they may.

NOT being sarcastic..we agree on most things..thanks

 

[Dr.Who]

I am a man, "doug". As I said many times, I am pro-asset preservation. For some people, that means buying gold. For me, that means buying silver.

I'm not sure if you are being sarcastic when you post that you "loved" my last couple of postings. Doesn't matter to me whether you "loved" them or not. I post what I believe, and let the chips fall where they may.

A quick question (for both of you).

(and off topic too)

My wife wanted to start investing in stocks in a retirement account in addition to her pension. Despite my objections that there were better uses for the money, it is a puny small amount, so I went along.

We get statements telling us that from the date of purchase we have put in $2,900 and that it is worth $3,198 now. Does that really mean it has earned money?