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Trade deficit widens to $46.3 billion, higher food & energy cost push up wholesale prices, 8.8 million people are now drawing unemployment, dollar falls to 10 month low. This is the finacial new for today 10/14/10. Just a heads up for everyone. If we stay informed we are better prepared.
 

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This can't be true. There is no social security, cost of living increase for the second year in a row because there is no inflation. Our government says so, so it must be true. :rolleyes:

Here's a little supporting information. The missing graphs can be found at the link below.

I'm sure there are people cheering the ~0.4% move in the futures right now - higher.
Don't. It's not good news. It's very bad news.

That's another 0.75% decline in the value of the dollar in the last couple of hours, and is very disorderly.

It's matched by this:

That's the Yen.

On a longer timeframe this is what the Yen looks like .vs. the Dollar since 2007:

That's massive. It's also basically at historical lows and support.

So much for "intervention" eh?

There's nothing good here either:

The dollar looks to be headed to 72, historical lows.

Bernanke is clearly intending exactly that sort of thing, in an orderly format. What's going on this evening is anything but orderly.

If this keeps up by the time Bernanke gets to his meeting the dollar will be lucky if it's not in the 60s, below all historical support levels. Somewhere in here it will come under severe speculative attack.

Bernanke thinks he can control this if it happens. He's wrong.

I wrote about this in 2007 and said that if it happened - the last time we were down there - it would be a catastrophe. Such an event would cause commodities to shoot the moon on a literal basis and result in massive capital flight of foreign funds out of the United States.

This is exactly the sort of trap that can lead a central banker to make the critical mistake of trying to "ease" even more - that is, print his way out. If he makes that error the currency is destroyed and when it implodes the government will go with it, as every citizen's liquid net worth will be rendered value-less overnight, exactly as occurred in Weimar.

From that outcome will come the sort of change nobody with any hint of sanity wants.

His only other option is to massively withdraw liquidity to support the dollar. That collapses every large bank - overnight.

If you think this sort of thing is "under control" you need to take a look in the mirror because you are suffering from severe recto-cranial inversion, and if you don't pull your head out soon you're going wake up with a boot on your neck.

Get your arms around this America:

Bernanke does not have the situation under control, and control is rapidly being taken over by international speculators who have more money than he does and both can and will force the issue.

Remember George Soros and the Bank of England.

We're in serious trouble; this sort of instability breeds crashes, and not just in stock markets either.

http://market-ticker.org/akcs-www?post=169103
 

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RockyMountainCanadian
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Hope fully the world market doesn't do a mass sell off of US dollars in panic mode , cause that could lead to the whole world in much more of a financial mess, kind of ironic that made up "dollars" based on credit ratings can stop the production and flow of life sustaining goods.
 

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There's no real inflation.... it's driven by a dollar devaluation, taxes& deficet spending last year the economy deflated -4.39

Current Inflation

Deficit spending by the fed's (not including state governments ) was nearly 10% of US GDP in the last 12 months.

this gives a rough assumption that the economy should have deflated 10% last year. in physics every action has an opposite reaction the same is true in economics. artificially inflated economies will have a large and more exaggerated deflation if for no other reason than the inflation is not driven by growth and consumption but deficit spending and deflating currency
 

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Trade deficit widens to $46.3 billion, higher food & energy cost push up wholesale prices, 8.8 million people are now drawing unemployment, dollar falls to 10 month low. This is the finacial new for today 10/14/10. Just a heads up for everyone. If we stay informed we are better prepared.
I get three doses a day.I can barely stand to read it.
 

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Definition of Inflation:

An increase in the money supply without a concomatant increase in the wealth backing that money.

In other words Printing Fiat FRN's is the cause of USA inflation.

Only the government, actually the FED (which is not part of the Federal government in any form, just a private bank that prints money, then lends it to dot gov at interest. Paper and electrons but no wealth creation.) PRINTS money.

No one except them can stop printing / adding zeros to eletronic spread sheets, thus no one but dot gov can increase or decrease inflation.

All else is simply reactions to the actions of dot gov.

Many hide behind the mis-understood word: Inflation.

It is all smoke and mirrors.

Until and unless America begans to once again produce things of value, the downward sprial to a full economic collapse and a new dark age for man with the possible balkanization of the usa into many mini countries such as occured in the former Yugoslavia is inevitable.

An argument can be made that lifestyles should be structured around this probability as a means of providing the greatest chance to survive and perhaps even last to the time when rebuilding may be possible. It could very easily turn into a multi-generational wait.

Xin Loi 'bout that.
 

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Comic Relief Member
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We have gone from "I'm from the Government and I'm here to Help you" to "I'm from the Government and I'm here to Hurt you". :eek:

What a sorry state of affairs....... :cry:
 

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So what is the scenario in a hyper-inflation event? Do we see mass food riots because many will not be able to afford the basic essentials? Will energy companies no longer be able to support generation because they can't afford fuel bought in dollars because their customers can't pay them? Will the government step in with martial law? I can't escape the big city because of my business but I am prepping in hopes I can defend me and my supplies for an indeterminate disruption in the flow of goods to the cities. I am not going down without a fight. Long term, i.e. in the next two years I hope to have a small BO location and eventually retire to the mountains but something keeps telling me we are not going to make 10 years before a major SHTF event.
 
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