sdavid0419

Inflation Likely to Win Tug of War with Deflation

Inflation has been under reported for years as the government has done everything from changing the way it is calculated to deliberately understating it and amending it up multiple times as less people are watching. Small businesses have eaten as much of this as they possibly could and then cleverly reduced the size of their products to hide increases in price. With the slow down in the economy the resistence to reduce prices is huge. In fact some are blatently raising prices that they feel they can get away with.

In the case of animal production for food we are seeing a dangerous situation where it is costing more to feed and raise an animal to maturity than they are fetching at market. Some are liquidating their stock creating a very short term period of cheap meat at the market. Short period that is since once we eat the cheap stuff there will be lots less meat coming in to replace it. I never thought I would see any cut of meat advertised at $10 per pound but that is happening more and more in the supermarkets.

The thing that amazes me is the given when governments print more money than revenues can cover it cheapens all of the money printed before it. ie. hyperinflation. This is a known economic law not an opinion or hypothesis. All of my friends keep telling me "I hope you are wrong" and are doing nothing to prepare for it.

The Vicious Circle of a Falling Dollar

You get it. I get it. T. Boone Pickens gets it. What the heck do we have to do to overcome the oil interests and get through to our elected officials?

It is difficult to push alternatives when a solar generator that produces 1700 watts of power costs $1200 compared to a gasoline powered one that delivers 5000 watts of power costing $500. I get it that I'm saving $13 every time I use the solar generator what I don't get is having to pick one or two items to keep on during a power shortage. The 5000 watts has barely gotten me by. As to wind power there are lots of hits on google but very little specific information as to cost and the amount of power they generate.

Weekly Outlook: Reading the Market Tea Leaves

I've been watching the GLD loop with great interest as it has become the only predictable thing in all of finance. Those that have recognized the loop and set buy and sell indicators near the top and bottom have had many successful trips and have not had to wait to awfully long for each cycle. I know that right now is the time when the government cheaters come in and sell short GLD that they don't have intent on taming the gold bull. Along with their shorts they set their bloggers loose with fear mongering commodity swing warnings as a smoke and mirrors cover up to their ill doings. Should you, me, or Martha Stewart do this (pump and dump) we go to jail but who's going to send the government to jail? But wait a second, I believe the time has come when the Fed's insistance on keeping interest rates artifically low making CD's, Tbills, and money markets impossible places to survive the sidelines. I say sidelines because I am predicting another 20-25% down on the dow over 8-24 months before the recovery could possibly begin. Throw in the larded up bill the house passed last week with 8 years of liberal democrats pent up tax and spend projects and hyperinflation is guaranteed. GLD is the only answer I can come up with and you know when the average guy on the street starts looking to get on the bandwagon the pump and dumpers are going to get burned big time. This could start as soon as the signature goes on the final version of the giveaway taxpayer money bill.

Why I'm Not Worried About the Market

This would have been the perfect scheme (your novel) except the target wasn't the richest of the rich. From what I've read the hardest hit was the NY teachers pension fund. I was thinking similar to you but my reasoning was the very riche were becoming bothered by the nouveau rich usurping their playgrounds. Do you know what its like telling a bourgeois that you can't get him a super bowl ticket at any price? The way I'm seeing this is the upper middle class is taking the hit on this one. I'm kicking myself in the ass for buying a house I could afford when all I had to do was buy my mansion and let the government bail me out.