It starts. Today. 9/8/09

Inflation. Mark this on your calendar. Today is the day inflation finally rears its bull horns into the U.S. economy.

For more than a year, many of us have been screaming about the sheer amount of dollars our Treasury department is printing to feed the national debt. Now after TARP, after bailouts, after "stimulus," the demon has finally taken hold.

As of this posting, Gold has broken through the $1,000/ounce ceiling and will stay that way; gas has shot up $3/barrel on no more reason than our currency is rapidly becoming worthless; and the dollar has hit lowest levels in months.

And why will the dollar crash further? Let's look at a little recent history. As you can see from that chart, that is the value of the dollar since 2001. After the dot com bust and the terrorist attacks, the Fed reduced interest rates to near zero. Initially, the dollar held its value. Then by the middle of 2002 -- free fall. It bottomed to where we ostensibly were as of Friday.

For months, gold has bounced between high $800 to low $900 an ounce, evidence of a battle between dollar bulls and dollar bears. The bears have roared as of today.

Remember, the dollar held its value for months after the Fed reduced short-term interest rates to zero. The Fed did the same thing a few months ago and the dollar held. At the same time, our country began printing money as never before.

Look how far the dollar fell between 02-05. How much more do you think this will fall now?

I hate being alarmist (or I like being alarmist, but really want to be wrong) but I think the day that we get Weimar Republic style inflation is upon us. Expect food shortages, rampant poverty and unemployment officially hitting 20% or more.

The Fed has failed, again. Your government has failed again. The rest of the world, especially one of our biggest dollar customers, feels this way. The few voices of reason among the many blinded or lying economic pundits see doom on the horizon.

If you're right, then it begins.

The dollar is rising against the yen, though:
money.cnn.com...

Well I do see the price of oil up $3.01.
Unleaded gas is $0.02 lower than normal. Hmm...:
money.cnn.com...

I guess we will see what happens.

Originally posted by havok
If you're right, then it begins.

The dollar is rising against the yen, though:
money.cnn.com...

Yeah, that's true. But who is the largest holder of U.S. Treasuries? Not China. Japan. Plus, Japan is in economic turmoil again and in a massive political transition.

I've speculated that Japan may also dump $.

GOOD let the dollar fall then we can go to a no money world # the 1 world currency we don't need money and it never should have been used in the 1st place everybody should be equal all adults 16 to 64 should have to work and not be paid a dime and everything should be free and if u don't work you don't get luxury items they only get food shelter nothing more and the people that work get all luxury items.

Inflation only occurs when the money supply of consumers expands (wage growth) which remains negative..

The increase in consumer products and commodities like gold and oil while wages stagnate or decline decreases consumption power.... thus, gold over 1k an ounce is a further sign of spiraling deflation that the feds cannot contain. NOT inflation. Prices inflate, the economy contracts.. we are in a deflationary spiral.

If anything it marks the next phase of this depression. But don't go worrying about inflation, deflation is so much worse..

Originally posted by weedman1978
GOOD let the dollar fall then we can go to a no money world # the 1 world currency we don't need money and it never should have been used in the 1st place everybody should be equal all adults 16 to 64 should have to work and not be paid a dime and everything should be free and if u don't work you don't get luxury items they only get food shelter nothing more and the people that work get all luxury items.

Wow - are you serious?

I am dumbfounded by what was just written - I ummm....I have no response - if you TRULY think this way I fear you may be too far gone to help.


Dorian Soran
"Working for EVERYTHING I have - including food and shelter

Originally posted by weedman1978
GOOD let the dollar fall then we can go to a no money world # the 1 world currency we don't need money and it never should have been used in the 1st place everybody should be equal all adults 16 to 64 should have to work and not be paid a dime and everything should be free and if u don't work you don't get luxury items they only get food shelter nothing more and the people that work get all luxury items.

Spoken like someone who doesn't have any marketable job skills, poor education, and a tendency towards laziness and complacency.

Personally, I think exactly the opposite should be done. Forget the luxury items, if you don't work, you don't get food and shelter. Effort should be rewarded, not laziness.

reply to post by weedman1978


Typical ignorant commie... if no one gets paid, no one gets "luxury"... you can't make everyone rich, you can make everyone poor.. while those in power use what wealth there is to trade for luxury items.. communism is a flawed concept, as to attain true communist goals one must first assume Human Nature is not present in the final product.. where Humans are there will be power, corruption, greed, wealth, social structures and most importantly, ambition... all these traits destroy true Communist Utopia ideologies...

reply to post by Rockpuck


Actually, there's another way for communism to work. It may not qualify as "communist utopia" and it certainly doesn't fit the Russian romanticism surrounding all the happy farmers and laborers toiling peacefully at their tasks, whistling, smiling, and proudly saluting Mother Russia, but it is the only viable way it works. It's called party-rule totalitarianism. You beat the holy bejesus out of anyone who isn't working as hard as you believe them capible of, you summarily execute those unable/unwilling to work to ensure no negative net production, and you keep your inner party members just happy enough to ensure that they all see each other as equals and continue to be satisfied with holding gross power over the "proles."

It has always fascinated me to ponder Marxist-leninist communism. That form of government was doomed to failure the day Marxism was judged by Lenin to go hand in hand with atheism. Truly, where else but the Christian Bible can a person find the tenents of functional communism? Only religion provides an intangible benefit for complete unselfishness and going against human nature... and thus non-totalinarian communism is an abject failure.

Originally posted by behindthescenes
Gold has broken through the $1,000/ounce ceiling and will stay that way

Well not quite ... while the market has a few hours left in it's trading day right now

Gold 998.90 2.20 0.22

Source
so it has fallen below the 1k mark and most likely will again once this little bubble bursts

[edit on 8-9-2009 by DaddyBare]

Originally posted by weedman1978
GOOD let the dollar fall then we can go to a no money world # the 1 world currency we don't need money and it never should have been used in the 1st place everybody should be equal all adults 16 to 64 should have to work and not be paid a dime and everything should be free and if u don't work you don't get luxury items they only get food shelter nothing more and the people that work get all luxury items.

*pinches cheek* awww, that idealistic shine will wear off of you once you graduate from grade school. looking at it, you just explained the perfect welfare state. Don't do jack but sit on your backside, and someone will give you a place to stay and food to eat. heck, throw in some clothes and books and I'll happily sit on my ass until it grows roots. What incentive do I have to do anything else?

Originally posted by behindthescenes

Yeah, that's true. But who is the largest holder of U.S. Treasuries? Not China. Japan. Plus, Japan is in economic turmoil again and in a massive political transition.

I've speculated that Japan may also dump $.

When did Japan take back the reigns from Japan as biggest foreign holder of US treasuries? Also, the Federal Reserve is the largest holder of treasuries in the world. Just an FYI

I don't give a **** about "luxury items." I live a very Spartan lifestyle relative to my actual holdings...I literally sleep on a bare board with a sheet and awake to cold showers because I think a HARD, DISCIPLINED LIFE is ITS OWN REWARD. The endless fixation with "luxury" leads only to decadence and its part of what has ruined this nation and planet. I work, eat sparingly, exercise to the best of my ability, and read the great books (or at least sites like ATS) rather than sitting on an over-padded sofa, medicating myself into mindlessness, and spacing out to the crap on a plasma screen TV.

Do I care about money? Yes, quite a bit...I SAVE IT, put it in commodities and precious metals, and foreign currencies. Does this make me a materialist? NOT AT ALL. On the contrary: I consider myself a "temporalist." If "time is money," that means "money is time." Since the human lifespan is limited, time is THE ONE THING that CANNOT be replaced. Beyond the basics, people should be more concerned with the relationship between money and time. The less debt and the more equity you have, the more potential time you have to do what you like (fishing, hunting, reading the classics, and surfing the net, in my case), both now and in the future. Or, you could choose to blow it all on plastic crap and marble countertops.

This is one of the greatest financial secrets out there, and yet it is in plain view, in front of everyone's faces. Instead of using their precious resources for TIME and FREEDOM, people end up on an endless treadmill of debt and mountains of useless goods that they lose interest in ten minutes after buying. The more you think about it, the more profound the relationship between money and time becomes. This is exactly what TPTB DON'T want you to realize.

Become a temporalist, not a materialist.



[edit on 9/8/09 by silent thunder]