Get Ready for "HYPERINFLATION" in the U.S.

[kevenj]

Today the Federal Reserve had an unannounced Sunday meeting and lowered interest rates once again; they also voted to help bail out bankrupt investmtent firm Bear Stearns.

Once again, they are creating worthless money out of thin air, thus devaluing the savings of every one of us. Right now Gold is $1023 an ounce in Europe where the markets are open (up some $30).

This week is gonna be interesting, and it ain't gonna be pretty.

[marlinspike]

I like the weak dollar, and further decreasing interest rates should only weaken it. China's shifting the peg of their supposedly no-longer-pegged-to-the-US currency in the other direction. The profit margins gained by shifting production to China aren't all that big (because of decreased worker efficiency, increased transport costs, increased storage costs, the inability to properly meet on-demand inventories), this may be enough to bring back some production to the US. Maybe now that China isn't pegging to us, companies will realize it isn't worth the $4/pair of sneakers profit margin increase to produce in China where the value of the dollar is uncertain. Even if that doesn't happen, it helps reduce the trade defecit.

[OoTLink]

Okay kevin, enough of this armchair politician, dude, what would you do besides completely shutting the government down to fix inflation?

[marlinspike]

If he says go back to the gold standard, I'm going to note that in our current situation that would kill us (because with where our dollar has gone the second we do that everybody we owe money to will start demanding gold).

Though, I do know where we could find $275million every day. (and just to mess with people I would direct the money towards a program to come up with a way to synthesize platinum and gold, so that they'll become as worthless as aluminum did once we could cheaply extract it - with platinum I would just start mining the moon).

What I wonder is will this be the new base for gold, or will it come tumbling down in a few years.

[kevenj]

Originally Posted by OoTLink

Okay kevin, enough of this armchair politician, dude, what would you do besides completely shutting the government down to fix inflation?

I'd start by electing representatives who actually represent the interests of the citizens of the United States, not the corrupt bunch of theives and ex-Wall street good ol' boys currently running things. Do you even realize (of course you don't) that Secretary of the Treasury Henry Paulson is the former head of Goldman Sachs, which has the distinction of being the most fined firm by the S.E.C. for securities law violations? And this guy's the treasury secretary? This in just one example.

What about our President himself. He's more corrupt than Bill Clinton and more inept than Jimmy Carter. Two things I NEVER thought possible. I'm not anti government. In fact (sadly) I voted for President Bush twice! because I bought into his lies. But at some point we all have to wake up and see what's in front of our faces. As far as being in 'armchair politician' it is our obligation as patriotic citizens to recognize what's being done to us and to at least try to stop it before its too late. It may already be too late but I hope not. The declining dollar means that all of your savings (if you have any) is worth less - - essentially being stolen from you. If you don't have any savings it still means rising prices. Why in the world do you think gas is $3.50 a gallon? Some of it is rising demand by China and others, but a good portion of it is our declining dollar. The lower the dollar goes (because the fed is flooding the market with more dollars) the more of them it takes to buy a barrel of oil. It is SO SIMPLE that people don't understand it because they think this mess we are in must be complicated somehow. It isn't. Print money out of thin air backed by nothing and you will eventually have worthless money. Same with anything - - if Chrysler announced that they were going to increase production of 300C's tenfold tomorrow, what do you think would happen to the value of your car? The more supply there is of anything, the less each one is worth. Simple.

[kevenj]

Anyway, back on topic

Agree with me or not, watch what happens and in the next 6 months to a year come back to this thread and see if I'm right that we are heading into a depression; a shrinking economy combined with hyperinflation - - which has not been seen since the days of Jimmy Carter.

I sincerely hope I'm completely wrong and you can all tell me "I told you so", but I fear that I'm not wrong.

Watch and see; just don't keep your heads buried in the sand.

[marlinspike]

Well, but the question is might we want a weaker dollar. I think we do.

Also, voting for Pres. Bush once is excusable, but twice? He had already put a stop to the tobacco lawsuits, prevented the results of the Microsoft anti-trust hearings from being implemented, and made clear that even if he didn't lie about the war in Iraq he at least took such a grave step prematurely (ok, so now I'm just giving you a hard time).

[marlinspike]

Originally Posted by kevenj

Anyway, back on topic

Agree with me or not, watch what happens and in the next 6 months to a year come back to this thread and see if I'm right that we are heading into a depression; a shrinking economy combined with hyperinflation - - which has not been seen since the days of Jimmy Carter.

I sincerely hope I'm completely wrong and you can all tell me "I told you so", but I fear that I'm not wrong.

Watch and see; just don't keep your heads buried in the sand.

I thin you're right about that, but I think people just need to put up with it for a few years and then we'll see things swing back around to better than before (as long as we keep like this, i.e. weak currency).

[OoTLink]

Because yer never wrong voting a republican in

[kevenj]

Originally Posted by marlinspike

Well, but the question is might we want a weaker dollar. I think we do.

Ok you're gonna have to explain to me (in simple words or 3 syllables or less so I can understand please) why we would want a weak dollar???

If I have "X" number of U.S. dollars in the bank, and the dollar's value drops by 25%, how is that good for me? My wealth has just declined by 25% !!