Massive Inflation Must be on Its Way...Is it Intentional?

I'm sure you all know this, but American currency has seen better days, and you know what? It's going to stay that way for some time. Let me just name a few reasons why massive inflation will be coming to a country near you:

Enormous Bailouts of Companies
Enormous Stimulus Package
Enormous Amount of New Money Being Printed
(Probably) Enormous New Taxes

And obviously these are just to name a few. So, my question to all of you is: do you think there is a reason behind this? I mean, an under-the-surface reason, or do you just think that the President is just not a very good Administrator? Or maybe the President is doing a bang up job and we should all follow him?

Oh, and feel free to add new reasons for inflation!

[edit on 20-9-2009 by ineverknew]

the cost to other industrialized nations to field a "world police force" like america has, offsets the cost of supporting our debt

reply to post by ineverknew


If you have not noticed but Obama may appear to be in charge, he is not. The most powerful man is never the one on the front page. Ever hear the saying by Rockefeller-If I control the money supply, I care not who writes the laws-paraphrased.

There is so many things that we cannot see behind the scenes.

Additions to your list.

Fed manipulation of interest rates.
Foreign trade debt.
Fiat money system.
Government manipulation of Stock Market-Goldman Sachs.
of Oil prices-main energy source.
of wages-illegal and legal immigration.
of regulations on business.

I could go on, but there are maybe 1000 inflation factors-99.99%-manipulated by the government.

reply to post by ineverknew


Webster Tarpley calls the current administration Fascist in orientation. Some say Socialist.

I think it is Nihilist. The people in charge believe in nothing. They are not Christians and no I don't think they are dedicated Devil worshipers.

They kinda believe "whatever is, is right", or go with modern notions of cultural relativism.


Historically, note when Pilate asked Christ, "What is Truth?" I think the US leadership has that same mindset.

As a citizen, I feel it would take a miracle for this country to move forward in a positive way.

It's been postulated in a couple of other threads that it's intentional...

...Seems us stubborn Americans and all our (soon to be lost) rights and freedoms are getting in the way of the new world orders...

...Then again maybe not...

...Maybe Americas trying to follow through on the Latin on the back of the dollar bill...

TPTB here are trying to implement the new world order and the rest of the world is slamming on the brakes...

[edit on 9/20/2009 by Hx3_1963]

reply to post by ineverknew


Higher Taxes ARE on the way.

There is no getting around this, none of our economies can survive for long in the state they are in without raising taxes. The fact that it is suggested only as a "possibility" is ridiculous.

And why are leaders allowing this to happen? Simple really, they know it's all a scam. But none of them want the collapse to happen on their watch.

Bush bailed out the Motor companies not because they were salvageable, but because it would make sure he didn't have to deal with it while he was president. It bought time and nothing else. They were threatening to fire thousands of people, and an immediate collapse of the entire industry would have sent shock waves that he would have to deal with immediately.
The same is happening with the banks and corporations "too big to fail". It's all about politics, and trying desperately not to look like the one who pulled the trigger.
Of course, there is also the fact that many of these politicians are the same breed as the bankers. They are in it for the personal gain and power. So they support each other where they can (at the expense of the people) to ensure their futures and financial security.

Politicians are so scared of losing support they refuse to tell the truth unless they're backed into a corner with no other option.
Look at Gordon Brown, for years he's been refusing to say there would have to be cuts in public spending. Yeah, that's right, even though we're going through an economic collapse the likes of which we've never seen, he had a "magic plan" to fix everything without cuts and without raising taxes!
Finally he's admitted recently that there will have to be cuts in spending.

This is an insane situation. And it's being exacerbated by the improper actions of leaderships and governments too weak to do what they should do, or too controlled by the elite to act on behalf of their people.

reply to post by Hx3_1963


I'll just throw wonder out loud: Is it possible that people who massively invest in gold want inflation so the gold can be worth more? I have no idea, of course, but I think that's another possibility.

reply to post by ineverknew
I'm not sure about the Gold angle these days...

There's so much manipulation in all the markets anymore, who can tell?

...But...the IMF released news last week it intends to sell some...that should beat the price down... :shk: ...wonder if this will hurt or help the falling USD?

IMF to sell gold reserves to help poorer nations
www.dw-world.de...

The IMF said in a statement the sales would be "in a volume strictly limited to 403.3 metric tonnes, with these sales to be conducted under modalities that safeguard against disruption of the gold market."

The Washington-based institution said the decision was a core element of a new income model to make it less dependent on its lending revenue.

The sale amounts to one-eighth of the current holdings of the IMF, which is the third-largest holder of gold after the United States and Germany.

[edit on 9/20/2009 by Hx3_1963]

I think hyper inflation may have already started in the U.S. Up until 8 months ago I would order equipment from the U.S. whenever possible because it was 2/3 the price of buying it locally (Canada). But for the last 8 months it has been much more expensive to order out of the U.S. Maybe its happened for a different reason but it has never been like this before.

CAUSE AND EFFECT... MOST PEOPLE WOULD REJECT A GLOBAL CURRENCY OR GLOBAL REGULATION OR A GLOBAL LEADER. SO, TO GIVE FOLKS AN ATTITUDE ADJUSTMENT, SIMPLY CREATE AN ENVIROMENT THAT MAKES PEOPLE CRY OUT FOR A STABLE CURRENCY, A REAL LEADER, AND A GOVERNING BODY SO THAT WE MAY CONTINUE OUR ALL CONSUMING WAYS.

Maybe this is why thier are new taxes coming..to help balance things off, so infaltion dosnt set in or get outta control at least? IM sure the fed knows they ahve overspent and gone guncrazy with money.. and thiers also the $12 billion still reported 'missing' from the FDIC..all these things will catch up in time. My theory is all these new stupid taxes, obesity, carbon, ect ect..where is the money going? Everyone knows politicians are scandelous and launder money, along with wallstreet for christ sakes!

Most of the bailout money replaced Reserve Dollars that were lost in the CDO/CDS crash. Not so much printing new money as it was replacing monies.. the rest is being used to prop up the equity markets.

You can't have inflation, especially hyper inflation without wage growth.

Its impossible.

The cost of goods rising is inflation of prices, but represents the devalued buying power of the Dollar, thus its deflation.

Wage growth is negative.

We are loosing jobs..

Thus; the total money supply among consumers is contracting, we are in a period of deflation. Not inflation.

The risk of hyper inflation is almost zero until we see signs of recovery, ie, wage growth and job growth.

Yes they did intentionally try to cause inflation to combat deflation, but thus far have failed.. trickle down economics was a hypothesis, and didn't yield the results anticipated by the FEDS.

The 403 tonne IMF Gold sale was first proposed back in 2007 , approved by the G-7 in Feb 2008 , authorized by the G-20 this past April , and received congressional approval in June....

U.S. Congress Vote Marks Big Step For IMF Reform, Funding
June 18, 2009

Selling a limited portion of IMF gold

Congress authorized the U.S. Treasury to instruct the U.S. Executive Director to vote to approve the sale of up to 12.96 million ounces of the Fund’s gold, which is the gold the Fund has acquired since the second Amendment of the Fund’s Articles of Agreement in April 1978. These sales would be used to create an endowment, as part of the implementation of a new income model that was endorsed by the IMF’s Executive Board last year, together with expenditure reductions, to put the Fund’s finances on a sustainable basis in the medium term.

Congress stipulates that such sales need to be handled according to guidelines agreed by the Executive Board in April 2008 to avoid disrupting the world gold market.

Full Text

In other words , this sale is old news , and the effects were largely discounted by the market by the end of 2008.

IMF takes up gold sales to expand lending

WASHINGTON — The International Monetary Fund's executive board on Friday was discussing selling some of the fund's gold to provide low-interest loans to poor countries and shore up its internal finances.

The move, authorized by the G-20 countries at their summit in London in April, has been long expected and discounted by commodity markets, where the price of gold has been rising amid fears of a weakening dollar and a resurgence of inflation.

The key question for the markets is whether the IMF will sell its gold in auction over a set period of time to get the best price or let central banks from member governments buy it. China, India and Russia, eager to reduce their position in dollar-denominated securities, have expressed interest in buying IMF gold.

Full Text

The 403 tonnes will most likely shuffle between IMF vaults and China/India/Russia CB vaults , but in the event of market sales , all mandates of the new Central Bank Gold Agreement are in effect.

The near-term threat to the POG is the record commercial net short position....

284,661 contracts (28.5 million ounces)

With Japan , India , and a good chunk of the Muslim world enjoying holidays tomorrow , look for another [trade-able] London/NY shake-down attempt.


Benanke's policy task....

Stimulate a healthy rate of inflation by diluting [the monetary base] faster than a Tijuana bartender , while simultaneously capping the price of Gold as a reliable indicator of global loss of confidence in $USD....

then

Withdraw the excessive liquidity with precision of a Swiss watch. Poor timing , a Fed tradition , risks either runaway inflation , or , the smothering of any possible hopes of a near/mid-term economic recovery.

If you listen closely , Gold is already wispering the outcome.

reply to post by OBE1


And what is the outcome you see happening? ... I see the fed failing to stimulate the economy from its current levels, not being able to shake off deflation... try as they might, they cannot stimulate the consumer..

Yes the inflation is intentional. The Fed is trying to inflate our way out of our debt problems with the rest of the world. We may still owe the same amount of dollars, but those dollars aren't worth as much any longer. So the US debt is easier to pay pay. The issue, of course, is that those lending money to us aren't dumb and they know what we are trying to do. So for this to happen, those that lend the US money have to willing lose purchasing power (value) on the money they put in US bonds. I doubt they will continue to do that....

Originally posted by Rockpuck
And what is the outcome you see happening? ... I see the fed failing to stimulate the economy from its current levels, not being able to shake off deflation... try as they might, they cannot stimulate the consumer..

Hi RP. Gold says inflation/stagflation.

Similar to a rising stock market in the face of deplorable economic fundamentals , runaway inflation isn't necessarily at-odds with sluggish economic conditions , or decreased consumer demand. Severe expansion of the monetary base (currency devaluation) can overwhelm the importance of both consumer demand , and the output gap (wages/unemployment) as inputs to inflation.

A debased $USD may offer US exporters a trade advantage , but with one important caveat: The advantage is only meaningful if our foreign trade partners can maintain sufficient levels of domestic consumption.

However for an import dependent country like the US , the flip-side of a weak $USD is guaranteed: Rising costs for imports and consumer essentials..i.e..inflation/stagflation , and it's only just beginning.

Am I the only one feeling the pinch

Today's thin overseas market wasn't lost on the bullion banks , look at the way they began hammering foreign Gold via Globex....

chart

London/NY tomorrow could get kinda bloody.

*Unless deep-pockets show-up to defend 1000*

[edit on 20-9-2009 by OBE1]

Originally posted by johnny2127
Yes the inflation is intentional. The Fed is trying to inflate our way out of our debt problems with the rest of the world. We may still owe the same amount of dollars, but those dollars aren't worth as much any longer. So the US debt is easier to pay pay. The issue, of course, is that those lending money to us aren't dumb and they know what we are trying to do. So for this to happen, those that lend the US money have to willing lose purchasing power (value) on the money they put in US bonds. I doubt they will continue to do that....

that's well put and maybe the most plausible argument I've seen. like repaying a loan: if you take out a $50,000 loan today and pay $50,000 back five years from now, you'll run a profit