Tag: inflation raging

Biden’s campaign theme for November. Don’t live in a dwelling and don’t eat, and your inflation is not a problem. Inflation adjusted weekly earnings have only fallen for 17 straight months due to this transitory inflation. That’s longer than the great financial crisis of 2008-2009. At least Biden has drained our Strategic Petroleum Reserve to a 40 year low right before launching World War 3. Make sure you vote Democrat in November to help this administration keep breaking records.

From Birch Gold Group

Stagflation is a situation in which inflation is persistently high, overall economic growth is slow and unemployment rates stay high for an extended period of time.

By “extended period of time,” we mean a decade or more. The U.S. last saw stagflation during the 1970s, usually dated from 1972-1981. After Japan’s real estate bubble popped in 1989, the nation’s stock market dropped 60% and real estate lost 70% of its value, the Japanese economy experienced a “Lost Decade” of zero economic growth from 1991-2003.

Continue reading “We’re Facing the Real Prospect of Another Lost Decade”

When the things you need to live your life on a daily basis are going up in excess of 10% and your government is saying they are going up at 5.4%, how do you feel? Senior citizens living off their meager savings are getting .15% on their money market accounts due to the Federal Reserve lying about inflation and doing the bidding of their Wall Street owners. Your dollar savings are losing 10% of their purchasing power on an annual basis. They are trying to destroy the lives of the little people. Open your eyes.

Guest Post by Simon Black

When I was about five years old in the early 1980s, my dad brought home our first computer.

I’ll never forget it– it was an clunky IBM with a tiny, orange, monochromatic monitor, and dual floppy disks. It had 640 kilobytes of RAM, and no hard disk.

I loved it. With that computer I learned how to program, how to navigate a command-line interface, how to design algorithms, and how to solve constant problems… because it was ridiculously buggy and would break down all the time.

It was also painfully slow. The boot-up process could easily take an hour, from the time I flipped on the power switch, to the time I saw the ‘DOS prompt’.

Sometimes I think that computer is a great metaphor for the global economy. Turning it off is nothing; you flip the switch and the power goes off. But starting it back up again takes a long time. And the process isn’t so smooth– sometimes it crashes during bootup.

Continue reading “Three bizarre reasons why inflation is here to stay”

Guest Post by Ron Paul

This month marks fifty years since President Richard Nixon closed the “gold window” that had allowed foreign governments to exchange US dollars for gold. Nixon’s action severed the last link between the dollar and gold, transforming the dollar into pure fiat currency.

Since the “Nixon shock” of 1971, the dollar’s value — and the average American’s living standard — has continuously declined, while income inequality and the size, scope, and cost of government have risen.

Continue reading “From the Nixon Shock to Biden-flation”

Via International Man

Stocks, bonds, and urban property—conventional investments—aren’t cheap in today’s investment world.

Because of the trillions of currency units that governments all over the world have created since the start of the crisis in 2007, financial assets are grossly overpriced. Meanwhile, real wages are slipping rapidly among those who are working, and—regardless of what official figures say—a large portion of the population is unemployed or underemployed. The next chapter in this sad drama will include a rapid rise in consumer prices.

We are in a financial no-man’s land. That said, what you should do with your time and money presents some tough alternatives. “Saving” is compromised because of depreciating currency and artificially low interest rates. “Investing” is problematical because of a deteriorating economy, unpredictable and increasing regulation, and rising taxes. “Speculation” is the best answer, of course, and I cover what that means elsewhere. But it may not suit everyone as a methodology.

Continue reading “Doug Casey on Why Almost Nothing is Cheap”

Guest Post by Simon Black

Robert Woodruff, President and CEO of Coca Cola, was in a terrible jam in 1953.

Coke was already one of the most popular and successful products in the world. Everyone loved it.

Coca Cola had become such a staple in American life, in fact, that, in 1943, the US War Department requisitioned 6 million bottles of Coke per month to be delivered to American soldiers fighting overseas.

But World War II had taken a toll on the US economy, and inflation was rampant. By the early 1950s, Coca Cola’s production costs had soared… and the company could no longer justify selling a bottle of Coke for 5 cents.

Woodruff had always loved their 5 cent price. Part of the allure was that the company owned roughly half a million vending machines across the country. So US consumers could easily pay for a bottle of Coke with a single coin– a nickel.

Continue reading “Inflation, President AOC, and other future risks my daughter will face”

From Birch Gold Group

Stepping on a Lego in bare feet hurts. Once you know the Lego is there, and it hurts when you step on it, you can’t ignore it. That Lego is right out in the open, after all.

High inflation feels very similar. At first it’s a shock, then it hurts, then you just can’t pretend it’s not there. Unlike a stray Lego brick, though, you can’t just tidy inflation away. (That’s the Fed’s job.)

Inflation robs you in the subtlest possible way. And once you know high inflation is there, and it bleeds your buying power month after month, it’s hard to downplay or ignore. At least for you and me.

Continue reading “Highest Inflation in Thirty Years Vs. Denial, Hand-Waving and Excuses”

From Birch Gold Group

The “whack-a-mole” game of watching inflation fall and rise sharply over the past 25 years is disheartening at best. Here’s why…

Inflation officially sits at 5 percent (the highest since 2008). The last 25 years of inflation rising and falling are shown on the chart below:

As you can see, the blue line remains above zero almost all of the time. This means there has been consistent inflation over the last 25 years, with only a couple of brief exceptions.

Continue reading “Inflation May Be Transitory, But This Damage is Permanent”

Authored by Michael Snyder via The Economic Collapse blog,

Inflation is making headlines all over the country, but the mainstream media is not being honest about the true severity of the crisis.  We are being told that the official rate of inflation is still in single digits, but what we aren’t being told is that the way inflation is calculated has changed dramatically over the years.  In fact, according to Forbes “the government has changed the way it calculates inflation more than 20 times” over the past 30 years.  The rate of inflation directly affects so many other things in our system, and the government would like to keep that number as low as possible.  So they tinkered and tinkered with the formula until they got it just where they wanted it.

Continue reading “Inflation Is Starting To Get Really Crazy… And It Is Worse Than You Think”

Guest Post by Simon Black

A remarkable thing happened yesterday that tells you everything you need to know about inflation.

In the morning, US Treasury Secretary Janet Yellen stated bluntly that “interest rates will have to rise somewhat to make sure that our economy doesn’t overheat. . .”

For economists, an ‘overheating economy’ means inflation. So she was essentially saying that rates would have to rise to prevent inflation.

Yet hours later, she completely reversed herself, saying that interest rates would NOT have to rise because “I don’t think there’s going to be an inflationary problem.”

You don’t need a PhD in economics to smell the BS.

Continue reading “Three reasons why inflation is rising. Two of them aren’t going away”