It's over folks. I'm actually a bit sad to admit it. The good days for America are done. We're no longer the world's sole superpower. We're no longer the shining city on a hill.
Ben Bernanke and The Fed have destroyed the US dollar. If you make or save dollars, you're in trouble. Ben Bernanke has chosen hyperinflation as the way out of this mess. You should invest accordingly.
This is a sad, sad day for America. It's over. There is no hope. Every man for himself.
"Bullish crude, bullish gold," said Zachary Oxman, a senior trader at Wisdom Financial. "I think the Fed had a choice, housing or inflation, and they chose housing. As such, you've got inflationary pressures running rampant despite what the government tells us."
October 31, 2007
The US dollar has been destroyed. Hyperinflation is here. The Fed hates the middle class. And the housing crash has destroyed America
Subscribe to:
Post Comments (Atom)
73 comments:
Well, let's see how does the American public define "hyper-". The early post-Soviet experience of buying that sausage for half of your last month's salary was unforgettable!
If there is anything good about this, they sound optimistic that there won't be a need for any more rate cuts.
benny & the inkjets lower rates even when the economy is doing fine aside from the housing bubble and inflation they created with low interest rates. wtf?
hopefully dr. paul will save the day. he's on the front page of msnbc:
http://www.msnbc.msn.com/id/21521415/
This is really a sad day for all of us
Gold futures surged above $800 an ounce for the first time since 1980 on Wednesday after the Federal Reserve cut the fed funds rate by a quarter-point to 4.50% and said that the recent spike in commodity prices may put renewed upward pressure on inflation.
In after-hours electronic trading, gold for December delivery rose as high as $800.80 an ounce on the New York Mercantile Exchange, its highest level in nearly 28 years. The all-time high for a benchmark gold contract on Nymex stands at $875, set on Jan. 21, 1980.
Earlier Wednesday, before the Fed rate decision
Fear and Loathing in America
I predict large scale rioting when the electorate finally wakes up and realizes they have been systematically lied to and then thrown under the train to die. It will make Watts and Detroit and Newark seen like a Cub Scout jamboree...
Those responsible should have their 'exit strategies' in order, they will need them, sooner than later, I predict. US Dollars will be meaningless at that point.
Grab your ankles, you've been had.
Death of the American Dream,
George W. Bush-Decider-in-Chief
I can't believe what I'm seeing. It's like a bad movie.
Re: “The US dollar has been destroyed.”
A “Federal Reserve Note” is not a U.S.A. dollar. In 1973, Public Law 93-110 defined the U.S.A. dollar as having the value of 1/42.2222 fine troy ounces of gold.
Bull Market in Sporting Goods...
Now may be a good time to visit the local sporting goods/Gun store and stock up on small arms ammunition. I, myself would look to the popular 'street' calibers: 9mm FMJ, 12ga shotgun shells OO buck is a good choice there, maybe a flat or two of .223 Remington. (This will allow you to barter with your local law enforcement authority since ammo wil be in short supply and their SWAT teams will undoubtably run out.) Oh, yes, .308 Win and 30.06 are also good bets. Perhaps a few extra guns too.
Since US dollars are now irrelevant, you will need trading materials soon just to eat and use for bribes.
Remember,like almost everything in Life, it is better to have more than not enough.
God Bless America
NYC's 'Realtor To The Stars' Found Murdered
Linda Stein's Discovered In Pool Of Blood By Her Own Daughter
http://wcbstv.com/local/linda.stein.dead.2.479621.html
No, hyperinflation is not here. And I seriously doubt it's ever coming, either. I expect more sensible statements from you than this, Keith.
Stagflation, perhaps, may be here in the very near future.
And we may see late-70s/early-80s kind of inflation/stagflation.
But the notion that we are anywhere near hyperinflation is ludicrous -- almost as ludicrous as things said by realtwhores over the last few years.
When hyperinflation is at risk of arriving, you will know by the fact that the prices of most things rise, by substantial amounts, on a monthly basis, for multiple months.
And if such a thing ever happened, you would see those interest rates get cranked way up. They'd go Volcker.
As it is right now, we are running at something between 7 and 15 percent inflation on an annual basis. If you doubled that, we would still be nowhere near hyperinflation.
Come on, guys, get real.
Yes, the US has huge economic problems right now. Yes, the rates ought to be increased, not decreased. Yes, inflation is a real problem that should be attacked properly, and soon.
But hyperinflation is nowhere in sight. Just serious inflation.
He is trying to save the bankers, who should be boiled in oil. He will destroy the dollar and won't save the banks either. A total loser, just like the shrub.
But wait, my stocks are up today!. . .gee, I will have so much more money to spend. . .got to run to fill up my tank before gas goes to $5. . .hmmmm that's strange, the Tropica OJ I have for breakfast seems to have gone up a buck . . .my Special K just went up a buck too. . .what's up?? Inflation is only 2%. . .didn't General Foods hear that??
Consequences of Todays Rate Cut.
http://tinyurl.com/2fl4q5
Without fuel they were nothing.
http://tinyurl.com/3yxglx
from an intercepted Western Union telegram: " I like the way the Fed is handling the subprime and credit crisis-we could use somebody like Bernanke over here.."
Robert Mugabe
Zimbabwe
nationalities and governments and armies and military powers, mean absolutely nothing when the same small group of people own the monetary systems of this world. we have a constitution and maybe it is as g w bush has been reported to have said..it is just a gd piece of paper......
maybe it is , but it could be so much more, if only we as americans would wake up and realize who we are and what we are losing. our founding fathers knew all too well the banking establishment which ran europe at the time of the founding of this country. the same bunch came here to try and do to us but repeatedly failed in their attempts. the constitution is specific in that it points out that we control our own money and and use silver and gold as our money... every president that has ever taken this at face value has met his death, through assassination....coinsidence? i think not......until we get rid of this madness called the fed we shall always live as slaves in a land that our forefathers fought and died for....and even now, it is starting to happen and the pace is quickening.......freedom sticks, ammunition , food , water....medical supplies, etc etc....are the order of the day...or else many of you will find yourselves marched off to some camp somewhere, for your own good of course........this is coming..........prepare my friends......prepare.........
Oh relax captain paranoid.
A brazilian I knew told me that hyperinflation was when kids spent their entire weekly allowance on day one for fear of price hikes!
While you're in trouble America, but it's not that bad...
Bryce,
Finally someone here with an ounce of sense. Thanks.
Keefer, gold was $800 in 1980. In 1980 the Dow was at 800 as well. When gold hits $14,000 then I'll start worrying. Until then you need to chill out dude.
Aside from gas inching back to $3 where is this inflation you keep yapping about? I just bought a new laptop for $600. Last time I bought a laptop was in 2004. I paid $1100 and it had 1/3 of the power my new one has and less than 1/2 the HD space.
My rent has gone up a grand total of 0% in the past 18 months. My cell phone bill is the same today as it was 4 years ago when I signed up for the plan except they added in 200 extra minutes for free, meaning I actually pay less.
And yes groceries do seem a little more expensive these days. But come on, spending an extra $10 to $20 a week at the supermarket does not exactly spell the end of the USA.
Get some perspective man. You lose your credibility each time you act like this.
Dinner for two tonight was $235
The dollar is worthless over here. Laugh all you want, but eventually it'll make its way over to your side of the pond
Ben Bernanke REALLY hates expats. Even though I prepared, it still stings
keith said...
Dinner for two tonight was $235
=====
whopdeefuck
Unless you live in London and get paid in $USD who cares what the cost of dinner is? Irrelevant.
Keith,
Doug Casey has a really good new publication called "without borders". It discuses where we can all aford to live in future on modest means. This month had an article on Slovakia.
-Matt C
"And if such a thing ever happened, you would see those interest rates get cranked way up. They'd go Volcker"
In the Weimar republic, rates barely budged.
Try again
No doubt the dollar is getting shellacked...I have more dollars than anything and am concerned. I think the dollar plunge is temporary - maybe for months a few years - yeah, but let's not get really crazy. I agree with recent poster, inflation is on gas and food, but on other consumer goods it's actually been deflationary. Healthcare pricing and college tuition are a whole other matter..internal US problem.
Frankly other than the gold I bought in 2004, the energy stocks , the emerging funds and some euros - it's too late for me to buy any more of those.
The dollar is temporarily dead, but it aint RIP....I would stay put in what you have and don't make any rash financial decisions that you may regret. But do get out of Money Mark Funds that have a lot of CDO's and mortgage paper - like Fidelity....
Hysterial is for amateurs and most of us on this blog know better.
Metal Detector,
From you last post. Right! Thats why
emigres will have to be careful. Physical and holding shares, perth mint etc. How to smugle wealth out? Anyone have good links to that?
-MC
Imagination is powerful, and sadly, when coupled with fear, it can get You into more trouble than the source.
However, I do believe that the power at the Fed et al is a group of a** kissing, back slapping, brain pan inspecting,losers who are heavily influenced by other sa*kless losers that work at a bank. I hope my kids don't grow up and want to be bankers.
I think this will play out to be a slow train wreck, by which, will really suck for a few years but we will bound back.
I wish I knew what profession to get into for hard times and what to do now financially with my everincreasingly worthless savings account. Seriously.
Devestment,
From previous posts ... Yep,
you got it right, totally.
-Matt C
Slow train wreck, slow train wreck, slow train wreck. But we will bounce back after we flush the losers in the financial world who think they work hard.
After coming to the conclusion that core rate is sh*t, I decided to do my own study of inflation over the last 6 months. Thats right, I named my own basket of goods and checked ~ monthly the prices.
My groceries inflation rate for the last 6 months: 9.2%.
Gas? Haven't done it, no need. The Brits, et al, pay the equiv of $8/gallon. We are heading for $5 gas by Spring.
Well Keith, guess Mexico City is looking better to be an Xpat. . .can't do Toronto anymore. I'm thinking of finding a beach house across the border in ole Mexico
When will you guys learn? If it feels good, do it! Everyone enjoys a rate cut, so quit complaining.
"Dinner for two tonight was $235"
For $235, you can buy a used cookstove and feed yourself many times. Paying that much for one meal is insane. Can't you cook?
edgar,
Your one sick puppy!!!
OMG! I just watched this 10 minute youtube video... Wow! I felt like all of my thoughts & notes on the current state of affairs were somehow telepathically transmitted to this man who created this video. It blew me away!
http://www.youtube.com/watch?v=-mxDsgcMk54
Perhaps there is something to be said about those cosmically connected. Sharing the same consciousness!
Question: How fast would the dollar drop if the Saudis price oil in another currency or even gold? If they did that, China would be foolish not to let their currency rise. When China lets its currency rise, that will cause an accelerated plummet in the dollar. Then, nobody will buy our bonds, not even Japan. Then, the entitlements and other government programs will begin to show signs of crisis. Then they will declare victory in Iraq to try and disguise the fact that we can't afford the war anymore. By that point, I'd say about 6 months to a year after the Saudis revalue oil in another currency, hyperinflation is a real possibilty when all of those dollars around the world come home at once and try to get spent. This will put us into a severe hyperinflationary Depression and Bennie knows this will happen. This is all by design. We are witnessing the greatest transfer of wealth from the average citizens to the upper class ever immaginable. Think about it, they talk about the entitlements like everyone will actually get them. These entitlements will be gone along with everything else as the slate gets wiped clean. Then we'll start the central banker game all over again. I think we're past the point of a Volcker-like saving of the currency. If they did that, Wall Street would get hurt. This country will never be the same again after this next Depression. Long term I'm not sure if this is a good thing or a bad thing when you consider that half of this country will be foreign owned.
HPers,
Due to the 1/4 point fed cut, I must post this question.
Is it time for HPers to become SHEEP or LAMB?
I vote SHEEP!
Wow, "The Fed hates the middle class" again. You didn't even bother to post the last one. Oh well. Those comments are just annoying because they've gotten old. It was funny the first few posts, but now.....
Keith, while I do think the Fed has made a stupid mistake (again!) I don't see the point of screaming "hyperinflation..." Isn't that just scare tactics?
Unfu%$ing believable! This PUNK said he would not intervene to save housing! And even though this wont save the housing market fiasco, he still trying to do whatever little he can to save the flippers, mortgage companies, etc. by lowering the rates! Bernake should be tried for TREASON for betraying his country!
Cutting rates during high inflationary times like what we have in the US currently, is like pouring gas on a fire to put it out.
Al-Qweeforoonie.
Do yourself a favor and go ‘Decaf’ for a couple of months.
The Battle of Sprawlingrad is raging!
The encirclement is complete, welcome to the Kessel.
Your leaders have forsaken you. You believed their propaganda. You have given your hard earned money for what? A piece of land that is now worth less than what it was, but you still owe more. Plastic do-dads and pos electronics that lose all value the second you open them. They will/have sacrifice(d) you, so as to not leave the chance of their wealth disappearing and the empire collapsing.
Your leaders promised you help but are are giving exile to the traitors, treasonous, sabateurs and thieves instead.
The people who are saying that there won't be any hyperinflation must be the same geniuses who were saying that housing bubble was a myth, oil wouldn't pass $40 and gold $700.
It's like the idiots who were totally wrong on every aspect of the Iraq war, who are now telling us how things are going to happen in Iraq if we pull the troops out.
Keep following the GOP, CNBC, the neocon freaks...you guys are a bunch of geniuses!
I had many years experience living in a country with hyperinflation. Wait until the baby boomers start hitting Medicare and the water in GA, NC, SC, AZ, and NV dries for good. It's coming.
Good luck to all who have been following us here, and like Keith said, prepare accordingly. This country has only one way to go: down...thanks to the corporate fascists and secret society types that took this country hostage. Oh, and one more thing, Blackwater and Halliburton don't make money with a stable world, so more phony wars and conflicts to come, especially now that they got the taste for bloody money and noticed that this country is habited by retarded sheeple.
Got my organic farm overseas with plenty of water, renewable energy, and a strong currency waiting.
Need to change the name of the Blog to Dollar Panic.... Hell the Housing Decline is well underway. It does amaze me that so many people think that housing decline is just temporary, or that the media caused it.
check out the other side:
http://www.ocregister.com/
travel/
wealthy-dubai-look-1911256-travel-hotel
Without a strong dollar they were nothing. They built a house of straw. The thundering machines sputtered and stopped. Their leaders talked and talked and talked. But nothing could stem the avalanche. Their world crumbled. The cities exploded. A whirlwind of looting, a firestorm of fear. Men began to feed on men.
On the roads it was a white line nightmare. Only those mobile enough to scavenge, brutal enough to pillage would survive. The gangs took over the highways, ready to wage war for a tank of juice. And in this maelstrom of decay, ordinary men were battered and smashed.
Except for one man armed with an AK-47, and a Honda full of silver.
Sorry, a laptop cannot feed me or get me to work. It cannot heat or light up my home. I would rather have no inflation in gas and food and inflation in electronics.
You got backwards Keith:'
The Housing BUBBLE destroyed America.
The Housing Crash will save it. Housing NEEDS to be AFFORDABLE again. That will save America in the long run.
In the short run, the lenders trashed everything with their stupid credit bubble.
Keith-- calm down, buddy. Sure, BB is a pushover. Sure, rates should be 5.5 instead of 4.5. But your hyperbole is a little out there. Dollar destroyed? America destroyed? Middle class destroyed? Are you telling me that some suits in a big city can bring my community down? Come to my town and look around. Sometimes I wonder if you even live in this America that you claim is being destroyed.. :-)
Before you accuse me of being a FB, know that I'm a solid housing bear whose videos have been posted on your site.
I think we may be in for some hard times economically. I don't think anyone really knows for sure.
I just get tired of your hopelessness and "woe is us" attitude. Let's figure out what we can do with the hand we're being dealt. Is the stock market going to crash? Fine, I'm young, I can recover, I'll buy cheap and hold for 40 years. Is the dollar going to become worthless? Fine, I won't keep cash, I'll invest in skills, and I'll pick up some RE when it gets cheap (good inflation hedge when it's not overvalued).
I think it unlikely, but maybe another Depression is on the horizon. Fine. It's just money and stuff. Start yourself a family and hold on to 'em tight. Those with fine character will not find it diminished in the hardest of times. My generation will learn a thing or two. Let's take what comes and not worry about the future. OK?
I pay attention and try to be as shrewd and prudent as possible. But some dudes named Mozillo and Bernanke can't ruin my day. Why do you let them ruin yours?
-da
Anonymous said...
Bryce,
Finally someone here with an ounce of sense. Thanks.
Keefer, gold was $800 in 1980. In 1980 the Dow was at 800 as well. When gold hits $14,000 then I'll start worrying. Until then you need to chill out dude.
Aside from gas inching back to $3 where is this inflation you keep yapping about? I just bought a new laptop for $600. Last time I bought a laptop was in 2004. I paid $1100 and it had 1/3 of the power my new one has and less than 1/2 the HD space.
My rent has gone up a grand total of 0% in the past 18 months. My cell phone bill is the same today as it was 4 years ago when I signed up for the plan except they added in 200 extra minutes for free, meaning I actually pay less.
And yes groceries do seem a little more expensive these days. But come on, spending an extra $10 to $20 a week at the supermarket does not exactly spell the end of the USA.
Get some perspective man. You lose your credibility each time you act like this.
October 31, 2007 11:08 PM<<<
dopes , is that you?
Houses are 10 times what they were in 1975. New cars are 10 times what they were in 1975.
That's 100% the result of bankers printing money under the table.
The job of the central banker is to print as much money as possible while convincing everyone they aren't.
The moment consumer prices rise significantly is the moment the masses wake up to the scam.
Hyperinflation is a function of the public's belief in the dollar. That belief is eroding fast.
Get your panties out of a bunch. You are dreaming if you think this is anything personal. They just inflate away the debt, so they don't have to pay anyone back. How did you think they were going to pay for this war? It is what they always do.
Seriously, what did you expect from a bunch of cold blooded killers, who are looting the treasury of billions of dollars? Pay back the money borrowed for the war? Bwahahaha! Inflate it all away! Hahahaha...
hyperinflation? just a tad dramatic there, Keith.
Hyperinflation is when you buy a loaf of bread in the morning and you go back in the afternoon and the price has already increased. and the next day and so on.
Somebody needs to come up with an online petition, calling for Ben Bernanke's resignation. He has shown his true colors as a Wall Street tool bag, and a pawn of speculators and flippers. By now, it should be obvious that he can care less about the average American.
MrCoffee
This PUNK said he would not intervene to save housing!
--------------------------------
I believe his words were something to the effect "it is not the feds job to save housing".
That is quite different than saying "the fed will not intervene".
It is not my job to help the bum on the corner.... But I might try to help anyway....
Sorry, a laptop cannot feed me or get me to work. It cannot heat or light up my home.
-----------------------------------
maybe not for you, but I can make it do that.
That's 100% the result of bankers printing money under the table.
---------------------------------
No, I don't think so, not all of it. Are you saying that if they hadn't printed more money then a house would cost the same now as back in 75? If that is the case, then a cigar in 1900 would have cost the same as a cigar in 1820.
Many of you didn't see the housing bubble coming either, so what makes you think that hyperinflation is an improbable scenario?
Did you see that gold would hit $800 and oil $95? Oh, but if both increased 10 fold you would still be saying that everything is under control. There's no inflation!
Meanwhile, tuition for your kids go up 18% every year, health insurance eats your paycheck, a house that used to cost $100k is costing now $400k in a matter of 5 years, car insurance goes up every year, utilities always up, property taxes up, a new decent car costs $30k (unless you buy an unsafe Korean toy for less), postage has increased a lot, gasoline is higher, food is freaking expensive, fees galore, etc, etc, etc. But you trolls or sheeple keep saying that there's no inflation. Kudlow said so!
Another major a$$hole posted here that he was rich, so he wouldn't care if gas went up to $10/gallon. Sure buddy, try to go out (or stay in for that matter) when 80% of the population is broke, starving, heavily armed, and pissed. Don't worry, Giuliani is going to save you.
I believe his words were something to the effect "it is not the feds job to save housing".
That is quite different than saying "the fed will not intervene".
-------------------
Ladies & gentlemen, the idiotic Tucker Carlson is posting his stupid arguments on HP, or he has a new clone. No wonder that tool can't hold a job.
I, and a few others here, have dismissed Keith's allegation of hyperinflation as the histrionic and hysterical rubbish that it is. To our critics, who have equated us with sheeple, I will try and express one aspect of our point a bit more clearly.
Those of us who say that we are nowhere near hyperinflation are hardly on a par with those who ever said there wasn't/wouldn't be a housing bubble.
Bubbles are regular occurrences. They happen frequently. Dramatic increases in prices based on speculation, as opposed to based on fundamentals, is what defines them.
Hyperinflation is not a common occurrence. At a minimum it involves an annual inflation rate of about 500%. It has happened about 20 times worldwide over the last 100 years. There is no evidence whatsoever to believe that the USA is on the cusp of such a thing. Christ, not even one city in the preposterous housing bubble has seen price increases of more than 40% per year. In other words, not even the ludicrously insane housing bubble has witnessed price increases that even remotely approximate hyperinflation.
Having said that, though,
(1) yes, the USA has got some really serious economic problems and it will be in fairly painful recovery of these problems for at least 8 years;
(2) I do not believe the official inflation figures; I believe that it is running at about 10%.
excerpt from a front page article on yahoo finance:
"Think foreign investing is risky? With international funds soaring and the dollar in the tank, the real risk to your retirement may be keeping too much money at home..."
For the deep thinkers here that are 'sick' of the 'doom and gloom' scenarios, try explaining why you feeeel so goood about 'things' not being so bad and your hopes/confidence in Happy Days are Here again to your laid off, broke,destitute neighbor (formerly your buddy in different times...)that is holding a sharp knife to your throat demanding your milk to FEED their hungry children (sort of like the evil axis of Bush-Cheney acquiring more billions for illegitamate war.)
Revolution is On The Way. Deep, Deep thinkers, Ask yourself, Are YOU prepared for what is to come?
yeah a buck seventy five more for orange juice does not spell boston tea party...yet
what loon pays 100 bucks plus for a meal and not be a politician?
the reason russia passed the fall of the soviet system quickly was because all housing was government owned and the government was not, and all transportation was centered around government housing and was public govt controlled, thus in collapse of currency few were put into the street and most had access to markets and tradings that were markets
buddy they are looting trillions not billions, my have things and prices changed that much? or is admitting to being a peasant that hard....
Anon October 31, 2007 10:00 PM
Said:
"Those responsible should have their 'exit strategies' in order, they will need them, sooner than later, I predict. US Dollars will be meaningless at that point."
Bush has a ranch with an airplane runway in Paraguay. Look it up. Same country where a lot of the Nazis fled after WWII.
Anonymous said...
That's 100% the result of bankers printing money under the table.
---------------------------------
No, I don't think so, not all of it. Are you saying that if they hadn't printed more money then a house would cost the same now as back in 75? If that is the case, then a cigar in 1900 would have cost the same as a cigar in 1820.
November 01, 2007 7:06 AM
-------------------
Actually, through the 19th century, the US was on the gold standard, and the average rate of inflation was basically zero. There were some boom (inflationary) and bust (deflationary) cycles, but on average, over the long term, prices did not change much. The modest increase in the supply of gold was offset by increasing production of goods and services.
So...if we don't believe every single thing Keith says, we're sheeple? Maybe you're just Keith's Sheeple.
Numerous participants here appear to be Keith's Sheep (there are worse things to be -- it would be much better to be one of Keith's Sheep than one of The Sheeple).
But, happily, it appears that at least half of the participants here are neither The Sheeple nor Keith's Sheep. There is a pretty good chunk of independent thought on here.
i see a bit of dissonance in the logic. everyone's bemoaning the fall of the dollar, and at the same time complaining about how bankers and financiers don't do real work.
but the only way to shift our economy away from financial services and into real work and real production if for the dollar to fall. if it doesn't our products won't be competitive with imports and so people in the US won't do real work, they will manage consumption.
a chaotic fall will hurt, but a slow fall can have many desirable consequences.
Andrew - you are assuming that a falling dollar will boost American productivity enough to stabilize the economy, which is leaving out the important rising commodity price, which will stay the same (in purchasing power) unless its coming from a country pegged to the dollar. The US is not as resource rich as it used to be...
Post a Comment