/PRNewswire/ -- The National Inflation Association today released the following article to its http://inflation.us/ members:
Today is a sad day for America. Last night, Peter Schiff lost the Republican primary for U.S. Senate in the State of Connecticut. Linda McMahon was the winner of the primary with 49% of the vote compared to Rob Simmons at 28% and Peter Schiff at 23%. Peter Schiff received 53% more votes than what the latest Quinnipiac poll had indicated, which showed his support at only 15%.
NIA believes that Peter Schiff understands the upcoming hyperinflationary crisis better than any other candidate who was running for office this year nationwide. He was perhaps our nation's last and only hope to prevent U.S. hyperinflation. It won't take long for the true nature of our country's dollar bubble to become apparent to all and when this time comes, Americans will sadly regret not electing Peter Schiff to the U.S. Senate.
America's tea party movement started out as a libertarian movement but it has recently been hijacked by FOX News and others in the mainstream media. On June 21st, thousands of NIA members wrote to FOX News asking for Glenn Beck, Sean Hannity, and Bill O'Reilly to feature Peter Schiff on their respective shows. All three of them decided to completely ignore Peter Schiff's senate campaign, despite the fact that Peter Schiff's credentials are stronger than any of the tea party candidates they are supporting.
Glenn Beck previously had Peter Schiff as a guest on his show on several occasions and obviously knew he was running for senate. It appears as though Glenn Beck wants to have Peter Schiff on only when it is supporting his agenda. Glenn Beck doesn't care about helping the public become educated about a true libertarian candidate who would actually make a difference in Washington.
Glenn Beck is not our friend. This is not the first time he has showed his true colors. Back when Ron Paul was running for President, Ron Paul raised a record $4.3 million in a single day "money bomb" all from grassroots supporters. Rather than praising Ron Paul and his supporters for their tremendous accomplishment, Glenn Beck questioned the use of the word "bomb" in "money bomb" and said that Americans who were supporting the "Ron Paul Revolution" were taking the word "revolution" way too seriously. Glenn Beck even said that he feared the U.S. military would one day need to be used domestically against Ron Paul donors.
On one occasion, Glenn Beck had Ron Paul on as a guest during his Presidential campaign. Instead of highlighting how Ron Paul was the only candidate running for President who has a perfect voting record for protecting the U.S. constitution and reducing government spending, Glenn Beck did everything he possibly could to sabotage Ron Paul's campaign. Glenn Beck asked Ron Paul bizarre questions on the air including "No plane hit the Pentagon on September 11th instead it was a missile fired by elements from inside the American state apparatus, yes or no?" and "Were the planes that hit the World Trade Towers remotely controlled, yes or no?". Glenn Beck unfairly smeared Ron Paul and his supporters as terrorist sympathizers.
NIA believes that both Democrats and Republicans are equally responsible for the debt crisis the U.S. has today. In the last Presidential election, Americans had a choice between two candidates, Barack Obama and John McCain, both who supported our country's destructive bailouts of Wall Street. At the same time that Ron Paul raised a record $4.3 million in his money bomb, John McCain's campaign was completely broke. The only reason John McCain came back to win the Republican nomination was because the mainstream media did everything possible to marginalize Ron Paul and support a candidate who was exactly the same as Obama on every important issue.
Glenn Beck is working tirelessly to set Sarah Palin up as the leader of the tea party movement. FOX News clearly wants Sarah Palin to take on Obama in the 2012 Presidential election. NIA considers Sarah Palin to be a neocon who doesn't support libertarian principles. If tea partiers embrace Sarah Palin as the leader of the tea party movement, NIA will have no choice but to officially write the tea party movement off as being useless.
The U.S. is in such bad financial shape that we currently have a budget deficit from Social Security, Medicare, and Medicaid alone. If Americans were taxed 100% of their income it still wouldn't be enough to balance the budget. With the phony economic recovery beginning to lose steam and the Federal Reserve getting ready to unleash the mother of all quantitative easing, Americans will soon experience a major decline in the purchasing power of their savings and income.
When Linda McMahon was asked on the campaign trail about entitlement spending, her response was, "I can certainly tell you I'm not adverse to talking in the right time or forum about what we need to do relative to our entitlements. I mean, Social Security is going to go bankrupt. Clearly, we have to strengthen that." Linda McMahon chose to avoid the topic of entitlement spending completely, saying she would only talk about it in the right "forum." The right forum would obviously be a debate, yet she outright refused to attend all of the Republican primary debates leading up to yesterday's vote and the mainstream media did nothing to call her out on this.
By saying that we clearly have to "strengthen" Social Security, Linda McMahon is outright deceiving and misleading the American public. There is no way to strengthen a program that has $14.5 trillion in unfunded liabilities. The only choice the U.S. has is to either default on its Social Security obligations or print the money to pay for them and create hyperinflation. Either way, millions of babyboomers who are getting ready to retire and planning to live off of their Social Security benefits will soon find out that they don't have the financial means to support themselves.
NIA's movies 'Meltup', 'The Dollar Bubble', 'Hyperinflation Nation', 'Japan: America's Lost Decade', 'Empty Store Shelves Coming to America', and 'Debt Slave' have now received a total of over 2.4 million views. This represents only a small percentage of the U.S. that NIA has been able to reach with the facts and truth about the U.S. economy. The mainstream media has chosen to completely ignore our documentaries. The only time the mainstream media covered our work extensively is when we wrote an article about the effects inflation will have on Lebron James' new contract.
NIA has proven through a countless number of facts and statistics how hyperinflation in the U.S. is inevitable. It's a shame that the majority of America is too distracted by 'American Idol' and the 'Jersey Shore' to take an interest in the U.S. economy and politics. Education is the most important key to America's survival. The only way our country will have the resources to rebuild after hyperinflation is if enough Americans become educated to the truth by watching documentaries like ours.
It is important for NIA members not to be discouraged by Peter Schiff's failed senate run. In NIA's latest documentary 'Meltup', Gerald Celente spoke about the "20% solution." According to Gerald Celente, if we can get just 20% of America to understand the truth and think for themselves, and if this 20% of the population moves in a focused direction, we can one day have an America far greater than we ever imagined. With 23% of the Republican primary voters in Connecticut voting for Peter Schiff, we at least have some reason to believe that our message is getting out there and resonating with people.
Please spread the word about NIA and have your friends and family subscribe for free at: http://inflation.us/
Showing posts with label hyperinflation. Show all posts
Showing posts with label hyperinflation. Show all posts
Wednesday, August 11, 2010
Wednesday, May 26, 2010
Don't Doubt Bernanke's Ability to Create Inflation
/PRNewswire/ The National Inflation Association today released the following inflation update to its http://inflation.us/ members:
With the Dow Jones now down 11% nominally from its high last month, NIA has been getting hundreds of emails and phone calls asking if there is any way we could be wrong about the threat of hyperinflation in the U.S. and if indeed deflation is the real problem we need to be worried about. The names Nouriel Roubini, Robert Prechter, and Harry Dent get mentioned to us a lot, with many NIA members asking why these so-called "experts" believe deflation is in our future.
Roubini, Prechter and Dent have been wrong about the overwhelming majority of their economic forecasts over the past decade. When it comes to their latest predictions about deflation, they will actually be right to some extent. We will see deflation in some assets like stocks and Real Estate, but only when priced in terms of real money - gold and silver. In terms of dollars, prices for pretty much all goods and services are guaranteed to rise dramatically over the next few years. Creating inflation is the only thing in the world Federal Reserve Chairman Ben Bernanke knows how to do and is good at.
During the past week, the mainstream media has shifted from saying we are experiencing an "economy recovery" to now saying we are at risk of a "double dip recession." Nothing fundamentally has changed in our economy. The fact is, the U.S. economy has been in a recession since mid-2000. All government reported positive GDP growth since mid-2000 has been due to nothing but inflation. Our economy should have experienced a depression in 2001 and an even greater one in 2008, but the depression has been temporarily avoided at the expense of an inevitable Hyperinflationary Great Depression down the road.
NIA believes it is impossible for the U.S. to experience price deflation when the Federal Reserve has held interest rates at 0% for the past 17 months. Sure, there will probably be a second wave of mortgage defaults that could cause another round of forced liquidations on Wall Street, but during any future period of forced liquidations, we doubt the U.S. dollar will still be looked at as the "safe haven" it was in 2008/2009. Gold and silver will soon be looked at as the only real safe havens because they are the only assets that provide protection from both a deteriorating economy and massive inflation. Precious metals will decouple from the Dow Jones and we will begin to see gold and silver rise at the same time as the stock market falls.
Bernanke was questioned yesterday following a speech at the Bank of Japan about whether a 4% inflation target would be better than the Fed's current inflation target of 2%. Bernanke responded that "it would be a very risky transition" if the Fed changed their inflation target, claiming that U.S. inflation expectations are currently "very stable" (NIA estimates the real rate of U.S. price inflation is already north of 5%).
Unfortunately, no policymaker in the world is smart enough to accurately control the rate of price inflation through the manipulation of interest rates, and certainly not Bernanke. It's mind-boggling to us how the mainstream media could believe anything Bernanke says about inflation after how wrong he has been about everything else. Maybe the press has already forgotten that it was Bernanke who in July of 2005 said, "it's a pretty unlikely possibility" that home prices will decline across the country, "house prices will slow, maybe stabilize but I don't think it's going to drive the economy too far from its full employment path." We are 100% sure that Bernanke will be proven wrong again when it comes to inflation.
The U.S. Dollar Index has rallied from 75 to 87 since December and is approaching its high from March of 2009 of 89. This has given Bernanke the cover to keep interest rates at a record low 0%, but NIA believes Bernanke is misreading these economic signals. When the U.S. Dollar Index reached its high last year of 89, gold was only $900 per ounce. Today, gold is approximately $1,200 per ounce. The fact that gold has held up so strong despite a rapidly rising U.S. Dollar Index, proves that our financial system is getting ready to overdose on excess liquidity. The U.S. Dollar Index has rallied only because it is heavily weighted against the Euro. The Euro is now overdue for a huge bounce, which we believe will send the U.S. dollar crashing while sending gold to new record highs.
It's not good for us to pay too much attention to short-term volatility in the financial markets. Short-term "noise" often causes investors to second guess what they know is true. In our new documentary 'Meltup' (which has now surpassed 441,000 views in 10 days) we said, "If stocks were to see a nominal decline one last time, we will likely see Bernanke shoot up his largest ever dose of quantitative easing, which could turn the current Meltup into hyperinflation."
We are seeing signs of this coming true already. Washington is now calling for another stimulus. Larry Summers, senior economic adviser to President Obama, has asked Congress to begin drafting a new stimulus bill in an attempt to prevent a "double dip recession." The proposed size of this new stimulus is so far only $200 billion, much smaller than the last $787 billion stimulus bill. However, we are sure Congress will increase the size of it, especially if stocks continue their nominal decline. The new stimulus bill will likely coincide with trillions of dollars in additional quantitative easing by the Federal Reserve.
With the Dow Jones now down 11% nominally from its high last month, NIA has been getting hundreds of emails and phone calls asking if there is any way we could be wrong about the threat of hyperinflation in the U.S. and if indeed deflation is the real problem we need to be worried about. The names Nouriel Roubini, Robert Prechter, and Harry Dent get mentioned to us a lot, with many NIA members asking why these so-called "experts" believe deflation is in our future.
Roubini, Prechter and Dent have been wrong about the overwhelming majority of their economic forecasts over the past decade. When it comes to their latest predictions about deflation, they will actually be right to some extent. We will see deflation in some assets like stocks and Real Estate, but only when priced in terms of real money - gold and silver. In terms of dollars, prices for pretty much all goods and services are guaranteed to rise dramatically over the next few years. Creating inflation is the only thing in the world Federal Reserve Chairman Ben Bernanke knows how to do and is good at.
During the past week, the mainstream media has shifted from saying we are experiencing an "economy recovery" to now saying we are at risk of a "double dip recession." Nothing fundamentally has changed in our economy. The fact is, the U.S. economy has been in a recession since mid-2000. All government reported positive GDP growth since mid-2000 has been due to nothing but inflation. Our economy should have experienced a depression in 2001 and an even greater one in 2008, but the depression has been temporarily avoided at the expense of an inevitable Hyperinflationary Great Depression down the road.
NIA believes it is impossible for the U.S. to experience price deflation when the Federal Reserve has held interest rates at 0% for the past 17 months. Sure, there will probably be a second wave of mortgage defaults that could cause another round of forced liquidations on Wall Street, but during any future period of forced liquidations, we doubt the U.S. dollar will still be looked at as the "safe haven" it was in 2008/2009. Gold and silver will soon be looked at as the only real safe havens because they are the only assets that provide protection from both a deteriorating economy and massive inflation. Precious metals will decouple from the Dow Jones and we will begin to see gold and silver rise at the same time as the stock market falls.
Bernanke was questioned yesterday following a speech at the Bank of Japan about whether a 4% inflation target would be better than the Fed's current inflation target of 2%. Bernanke responded that "it would be a very risky transition" if the Fed changed their inflation target, claiming that U.S. inflation expectations are currently "very stable" (NIA estimates the real rate of U.S. price inflation is already north of 5%).
Unfortunately, no policymaker in the world is smart enough to accurately control the rate of price inflation through the manipulation of interest rates, and certainly not Bernanke. It's mind-boggling to us how the mainstream media could believe anything Bernanke says about inflation after how wrong he has been about everything else. Maybe the press has already forgotten that it was Bernanke who in July of 2005 said, "it's a pretty unlikely possibility" that home prices will decline across the country, "house prices will slow, maybe stabilize but I don't think it's going to drive the economy too far from its full employment path." We are 100% sure that Bernanke will be proven wrong again when it comes to inflation.
The U.S. Dollar Index has rallied from 75 to 87 since December and is approaching its high from March of 2009 of 89. This has given Bernanke the cover to keep interest rates at a record low 0%, but NIA believes Bernanke is misreading these economic signals. When the U.S. Dollar Index reached its high last year of 89, gold was only $900 per ounce. Today, gold is approximately $1,200 per ounce. The fact that gold has held up so strong despite a rapidly rising U.S. Dollar Index, proves that our financial system is getting ready to overdose on excess liquidity. The U.S. Dollar Index has rallied only because it is heavily weighted against the Euro. The Euro is now overdue for a huge bounce, which we believe will send the U.S. dollar crashing while sending gold to new record highs.
It's not good for us to pay too much attention to short-term volatility in the financial markets. Short-term "noise" often causes investors to second guess what they know is true. In our new documentary 'Meltup' (which has now surpassed 441,000 views in 10 days) we said, "If stocks were to see a nominal decline one last time, we will likely see Bernanke shoot up his largest ever dose of quantitative easing, which could turn the current Meltup into hyperinflation."
We are seeing signs of this coming true already. Washington is now calling for another stimulus. Larry Summers, senior economic adviser to President Obama, has asked Congress to begin drafting a new stimulus bill in an attempt to prevent a "double dip recession." The proposed size of this new stimulus is so far only $200 billion, much smaller than the last $787 billion stimulus bill. However, we are sure Congress will increase the size of it, especially if stocks continue their nominal decline. The new stimulus bill will likely coincide with trillions of dollars in additional quantitative easing by the Federal Reserve.
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