Deflationary Depression and Purging To Come

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Deflationary Depression and Purging To Come

June 2 2010

What now that stimulus packages are ending, money set to plunge, market control by insiders has to end, Fed doesnt need a monopoly, bond sales down, still high expectations for gold.

We believe an inflationary depression began in February of 2009, and little has changed. Since then factory output has increased, as have inventories and other outward signs, such as retail sales. We believe that one-year spurt is ending, unless a new stimulus program is put in place. This past week we saw a $78 billion addition to unemployment benefits and Larry Summers has said they need an additional $200 billion. In order to keep the economy going sideways a total of another $800 billion will be needed. The Fed may have cut back the creation of money and credit to zero, but it is still dishing out trillions to domestic and foreign banks, which can only affect the domestic economy in a residual way. The key is real personal income. Including government programs it has fallen $500 billion over the past 16 months. In addition real unemployment remains at a high of 22-3/8%. That is U-6 less the birth/death ratio. This terrible dilemma is a first and is surprising in as much as government addition to income has gone past 18% for the first time ever. We expect that part of the reason for both situations is the perpetual drag of free trade, globalization, offshoring and outsourcing, which has continued unabated.

There is no question that the $800 billion stimulus has come to an end. During the past 16 months $200 billion of that $800 billion has shown up in consumer spending. The rest has raced through the economy and the result is a budget deficit in the vicinity of $1.8 trillion.

Over the past several months we have seen a decreasing number of new unemployed, but last month those official figures rose. That to us was the signal that the growth in employment had ended as well as the mini-recovery. We will know better the situation when May’s figures are released. The small increase in non-farm payroll tells us our appraisal of offshoring and outsourcing is correct. We predicted the effects of offshoring and outsourcing in 1967, but, of course, no one was listening.

Small business’ contribution has been zero. Many of these businesses are failing and most cannot get loans. We expect that condition to persist indefinitely, which means job stability is nowhere to be seen in the immediate future. In spite of bogus government figures the economy is not growing and won’t grow. Unless the system is totally purged in a classic way there will never be any recovery.

Sooner or later the deflationary depression and purging will come. The economy is stagnant and that is with an $800 billion stimulus program and $2.3 trillion in spending by the Fed, some of which had to have entered the economy. Just think of where we would be without both additions. With stimulus, over the past year, we have only seen an average of 2.38% growth. This is certainly a very weak “recovery,â€

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In addition real unemployment remains at a high of 22-3/8%. That is U-6 less the birth/death ratio. This terrible dilemma is a first and is surprising in as much as government addition to income has gone past 18% for the first time ever. We expect that part of the reason for both situations is the perpetual drag of free trade, globalization, offshoring and outsourcing, which has continued unabated.

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are ya Pissed yet America .. you do realize that Obama is pushing for Illegal Aliens to be competitive for any jobs paid for by stimulus ~ YOUR TAX MONEY

Now there is some cheery news... I am not mad anymore... I am sick and desperate.

Oh I have been angry....very angry. Thing is, yes 100% personal incomes have gone down since 1980 when compared to cost of living, and use of credit has gone up since then as well. Fact is this is what our Plutocracy wants. They want illegal aliens, low wages, unemployment, outsourcing, offshoring and INSANELY HIGH PROFITS FOR 1% of the people.

http://www.alipac.us/ftopict-201214-citibank.html

Your fiat currency demands all. The fiat is based on faith. When faith is no longer in vogue, then the force of government takes over.

What was the skit in Monty Python? "Now we see the inheirent violence in the system." (?)

Follow the dollar. KISS. Learn about inflation at a basic level and keep it simple. Further down the rabbit hole, inflationary, and deflationary forces strip the public of wealth by manipulating a fiat currency, first more, then less. What side of the bet where you on? (If you have no phone numbers for New York, Geneva, or London you might be at a disadvantage.)

Trending Towards The Inflationary Economic Depression

Economics / Great Depression II
Jun 02, 2010 - 10:08 AM

By: Bob_Chapman

We believe an inflationary depression began in February of 2009, and little has changed. Since then factory output has increased, as have inventories and other outward signs, such as retail sales. We believe that one-year spurt is ending, unless a new stimulus program is put in place. This past week we saw a $78 billion addition to unemployment benefits and Larry Summers has said they need an additional $200 billion.

In order to keep the economy going sideways a total of another $800 billion will be needed. The Fed may have cut back the creation of money and credit to zero, but it is still dishing out trillions to domestic and foreign banks, which can only affect the domestic economy in a residual way. The key is real personal income. Including government programs it has fallen $500 billion over the past 16 months. In addition real unemployment remains at a high of 22-3/8%. That is U-6 less the birth/death ratio. This terrible dilemma is a first and is surprising in as much as government addition to income has gone past 18% for the first time ever. We expect that part of the reason for both situations is the perpetual drag of free trade, globalization, offshoring and outsourcing, which has continued unabated.

There is no question that the $800 billion stimulus has come to an end. During the past 16 months $200 billion of that $800 billion has shown up in consumer spending. The rest has raced through the economy and the result is a budget deficit in the vicinity of $1.8 trillion.

Over the past several months we have seen a decreasing number of new unemployed, but last month those official figures rose. That to us was the signal that the growth in employment had ended as well as the mini-recovery. We will know better the situation when May’s figures are released. The small increase in non-farm payroll tells us our appraisal of offshoring and outsourcing is correct. We predicted the effects of offshoring and outsourcing in 1967, but, of course, no one was listening.

Small business’ contribution has been zero. Many of these businesses are failing and most cannot get loans. We expect that condition to persist indefinitely, which means job stability is nowhere to be seen in the immediate future. In spite of bogus government figures the economy is not growing and won’t grow. Unless the system is totally purged in a classic way there will never be any recovery.

Sooner or later the deflationary depression and purging will come. The economy is stagnant and that is with an $800 billion stimulus program and $2.3 trillion in spending by the Fed, some of which had to have entered the economy. Just think of where we would be without both additions. With stimulus, over the past year, we have only seen an average of 2.38% growth. This is certainly a very weak “recovery,â€

Honest money vs fiat.

One million dollars in gold at $1000.00 per oz. One once of recoverable gold per ton of rock would require 100,000 tons of rock to be processed. Lots of work. Honest work, honest labor, honest investment in getting the gold from the rock.

vs fiat

One million dollars in fiat, equals one man punching a keyboard with a minimal of amount of effort in a air conditioned office. One billion dollars of fiat requires the same amount of effort, as does one trillion dollars.

Inflationary forces concerning a fixed or standard rate, i.e. a gold standard would be akin to a rising tide raises all ships. In other words the little man's gold would go up according to the mandate on the standard at exactly the same time as the governments gold, the banker's gold, or the rich mans gold. Monetary equality.

vs fiat

Inflationary pressures on the fiat is nothing but transference of wealth to the wealthy, or those that are at the top of the food chain, or are politically connected. The working man, the average Joe is robbed.

The fiat is valued on force or faith, which ever one you find to your liking. The fiat is not your money. It is on loan to you.

The carbon credit that has been talked so much about, well it is a credit, yes? A credit is linked to a debit. One man's credit is another's debit. Will carbon credits be mined with much labor or honest work? Or will carbon credits be created at a keyboard like the fiat dollar? Force will back the carbon credit as faith is unlikely to be found amongst those who have or wish for much credit.

Which political party helps to educate the public concerning the fiat dollar?

Both parties are corrupt as the day is long.

A cow pie used as money is more honest than a fiat piece of paper.

Have pick, shovel, sluice box and gold pan... Will travel.

Floorguy wrote,

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Have pick, shovel, sluice box and gold pan... Will travel.

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I was in Eastern Oregon a couple of weeks ago and ran into a couple of fellows doing just that, sluicing for gold. First time I had ever actually seen the process up close and personal.

I was left with the impression that there was nothing but honest work involved. :lol: