The demise of the dollar In a graphic illustration of the new world order, Arab states have launched secret moves with China, Russia and France to stop using the US currency for oil trading
So, who to believe? My guess is that eventually some countries will succeed in trading in other currencies for oil but it’ll take a lot of effort and time. The bottom line is that oil will get more expensive over time but we have the time we need to become less reliant on foreign oil.
Hyper-inflation is another issue. Right now, the moves the Fed made are inflationary but there is no inflation as of yet. The quantitative easing will be reduced gradually and that will help avoid too much inflation from happening down the road. For the time being, no problem. Deflation is still a concern. Over the next few years, the real threat is stagflation which is inflation coupled with high unemployment. The worst of these effects can be avoided with good monetary policy but it’ll take years to get employment back on track. Some jobs are never coming back but eventually, new types of jobs will take their place.
It’s going to take a long time to recover from this recession. At the moment, the stock market is surging. AAPL (Apple, Inc.) is up 110 points since March or 137.5% in 6 months but it’s still down over $12 from its December, 2007, high. The market often leads the economy by 6 to 9 months so it’s anticipating that the economy will hit bottom during that period next year. Indeed, unemployment should peak 6 to 9 months from now.
Dug on October 6, 2009 at 4:42 pm
In terms of visible inflation, the only thing that is preventing the hyperinflation from occurring right now is the velocity of the money supply is not there. The Fed has expanded the money supply to such a large degree that there is no way they are going to be able to re-absorb it that quickly. When and if the economy finally does pick up steam and the velocity of the money supply picks up, then you will see the visible inflation kick in.
The other thing the Fed is doing right now is buying a huge percentage of the treasuries being placed on the market, by monetizing these purchases… which is really what Beck is referring to. This causes a hidden inflation in that purchasing power of the dollar is less and less. If one has ever wondered why the reported CPI is low and yet one’s ability to buy the same amount of groceries for the same amount of money is reduced… this is why. The Fed and the politicians (on both sides of the aisle) have been doing this for decades, so they don’t have to raise taxes. Decades ago, families could live on one income from one job… it’s a rarity today… for the same reason. This has profound implications for future generations.
Supposed recovery has some assumptions… one of which is that some of these proposed programs will not occur… mandated health care, cap/trade, expiration of the Bush tax cuts… any one of which will have a major impact on small business and employment. I agree that we are headed for stagflation… on levels we have never seen in our history… unless the voting public elects some adults to go to Congress in the next election and clean up this mess.
We have a bunch of insane children running this government right now.
“It was Paulson and Bernanke and members of the House and Senate that forced the Financial Accounting standards Board to abandon mark-to-market to virtually no standard at all, known as mark-to-myth. That was the result of an avalanche of campaign contributions used to pay off our political class.
This is one of the greatest frauds of all time and it is not yet half over. There are no regulators, there are no policemen, there is no Congress; everyone in NYC and Washington is in on it, except the poor taxpayers. Commercial real estate is just as bad and faces perhaps more than $1 trillion in refinancing next year. As we predicted four years ago losses in residential real estate would average 45% to 55% countrywide, and commercial would be hit for 70% and we are going to be dead on if not conservative. Over the next three years the total world financial system is going to collapse, the dollar devalued, massive default and the world will be brought to an economic and financial standstill. That is why you must have all your assets in gold and silver coins and shares. It is the only way you can preserve your wealth.
It is bad enough that Americans are tax slaves but most are debt slaves as well.”
california patriot on October 6, 2009 at 6:01 pm
Here is another take on where we are headed. Pleasant dreams everyone:
“Unless a purgative system of bankruptcy is put into effect very soon, the entire world system of nation-states will soon disintegrate, one after the other, chain-reaction style. It could come as soon as some time in October. If it is permitted to occur, it will come as a result of the hyperinflationary collapse, like that of Weimar Germany in 1923, but not in one isolated nation, this time; the entire planet will collapse, and leading nations will simply disintegrate. This could be stopped now, if my proposal for a reorganization-in-bankruptcy converts certain leading nations from the present international monetary system, into a credit-system of the type prescribed by the U.S. Federal Constitution. Otherwise, the doom is already inevitable.”
First, there was this story:
The demise of the dollar
In a graphic illustration of the new world order, Arab states have launched secret moves with China, Russia and France to stop using the US currency for oil trading
http://www.independent.co.uk/news/business/news/the-demise-of-the-dollar-1798175.html
Then, this rebuttal:
Gulf States Deny Secret Plan to Dump Dollar
http://www.foxnews.com/story/0,2933,560742,00.html
So, who to believe? My guess is that eventually some countries will succeed in trading in other currencies for oil but it’ll take a lot of effort and time. The bottom line is that oil will get more expensive over time but we have the time we need to become less reliant on foreign oil.
Hyper-inflation is another issue. Right now, the moves the Fed made are inflationary but there is no inflation as of yet. The quantitative easing will be reduced gradually and that will help avoid too much inflation from happening down the road. For the time being, no problem. Deflation is still a concern. Over the next few years, the real threat is stagflation which is inflation coupled with high unemployment. The worst of these effects can be avoided with good monetary policy but it’ll take years to get employment back on track. Some jobs are never coming back but eventually, new types of jobs will take their place.
It’s going to take a long time to recover from this recession. At the moment, the stock market is surging. AAPL (Apple, Inc.) is up 110 points since March or 137.5% in 6 months but it’s still down over $12 from its December, 2007, high. The market often leads the economy by 6 to 9 months so it’s anticipating that the economy will hit bottom during that period next year. Indeed, unemployment should peak 6 to 9 months from now.
In terms of visible inflation, the only thing that is preventing the hyperinflation from occurring right now is the velocity of the money supply is not there. The Fed has expanded the money supply to such a large degree that there is no way they are going to be able to re-absorb it that quickly. When and if the economy finally does pick up steam and the velocity of the money supply picks up, then you will see the visible inflation kick in.
The other thing the Fed is doing right now is buying a huge percentage of the treasuries being placed on the market, by monetizing these purchases… which is really what Beck is referring to. This causes a hidden inflation in that purchasing power of the dollar is less and less. If one has ever wondered why the reported CPI is low and yet one’s ability to buy the same amount of groceries for the same amount of money is reduced… this is why. The Fed and the politicians (on both sides of the aisle) have been doing this for decades, so they don’t have to raise taxes. Decades ago, families could live on one income from one job… it’s a rarity today… for the same reason. This has profound implications for future generations.
Supposed recovery has some assumptions… one of which is that some of these proposed programs will not occur… mandated health care, cap/trade, expiration of the Bush tax cuts… any one of which will have a major impact on small business and employment. I agree that we are headed for stagflation… on levels we have never seen in our history… unless the voting public elects some adults to go to Congress in the next election and clean up this mess.
We have a bunch of insane children running this government right now.
The following is quoted from here: http://theinternationalforecaster.com/International_Forecaster_Weekly/Weakness_And_Worries_Throughout_Reports
“It was Paulson and Bernanke and members of the House and Senate that forced the Financial Accounting standards Board to abandon mark-to-market to virtually no standard at all, known as mark-to-myth. That was the result of an avalanche of campaign contributions used to pay off our political class.
This is one of the greatest frauds of all time and it is not yet half over. There are no regulators, there are no policemen, there is no Congress; everyone in NYC and Washington is in on it, except the poor taxpayers. Commercial real estate is just as bad and faces perhaps more than $1 trillion in refinancing next year. As we predicted four years ago losses in residential real estate would average 45% to 55% countrywide, and commercial would be hit for 70% and we are going to be dead on if not conservative. Over the next three years the total world financial system is going to collapse, the dollar devalued, massive default and the world will be brought to an economic and financial standstill. That is why you must have all your assets in gold and silver coins and shares. It is the only way you can preserve your wealth.
It is bad enough that Americans are tax slaves but most are debt slaves as well.”
Here is another take on where we are headed. Pleasant dreams everyone:
http://www.larouchepac.com/node/11916
“Unless a purgative system of bankruptcy is put into effect very soon, the entire world system of nation-states will soon disintegrate, one after the other, chain-reaction style. It could come as soon as some time in October. If it is permitted to occur, it will come as a result of the hyperinflationary collapse, like that of Weimar Germany in 1923, but not in one isolated nation, this time; the entire planet will collapse, and leading nations will simply disintegrate. This could be stopped now, if my proposal for a reorganization-in-bankruptcy converts certain leading nations from the present international monetary system, into a credit-system of the type prescribed by the U.S. Federal Constitution. Otherwise, the doom is already inevitable.”
Your Daily #GlennBeck; 10.06.09: The Demise Of The #Dollar (UPDATED) http://bit.ly/18dh1g #tcot #logisticmonster #phnm #912_project