|
Ardent Listener
Administrator
USA
4841 Posts |
 Posted - 03/30/2010 : 15:51:47
|
Our Inflation Rate is Really 10% Right Now
Our Inflation Rate is Really 10% Right Now
You must be logged in to see this link.
Interest Rates can never rise again, as by November 2010 the ON BALANCE SHEET debts of the United States will be $14.5 trillion; a 3 percent rise in short-term yields is $420 billion of additional interest expense per year, ON TOP OF the current $1.6 trillion deficit, thus expanding it by 1/4th , to $2 trillion a year.
Interest rates can never be normalized again, ever, and if measured accurately they are profoundly NEGATIVE. Take a look at this alternate measure of inflation from John Williams of You must be logged in to see this link.
Wow, after unwinding the ADJUSTMENTS (made by government to lie to you) inflation is at almost 10 percent on the items you use EVERY DAY; if interest rates were normal, overnight fed funds should be 10% RIGHT NOW! Notice how the GAP has widened over the last three DECADES? Just like Pinocchio’s nose, the lies just keep getting bigger and bigger. Think of it, negative interest rates approaching 9% -- trillions of dollars of government spending throughout the developed world and NO GROWTH in incomes and economies. An inflation MEGA trend is firmly in place and will continue to unfold.
There is no escape route except printing the money and they will do so, as there is NO APPETITE for doing the right thing, cutting spending and cutting government. A clear indication that the “something for nothings” are in the majority. Look no further than the United Kingdom where labor has climbed to parity in opinion polls as the something-for-nothing public refuses to realize the depth and enormity of the unfolding insolvency wrought by Gordon “sold the gold” Brown.
Think of the US issuance and add this to it. Where will the money come from? The printing press in one form or another. That’s just the rollovers; now let’s look at NEW issuance to cover 2010 DEFICITS from You must be logged in to see this link.
This is called INSANITY. Only India, China and the emerging world are growing in REAL terms, the rest of the borrowers are DEADBEAT welfare states with shrinking incomes and economies, when properly adjusted for inflation. How the US and Europe are going to navigate the rest of the year without some MISHAP is inconceivable. That will be the appearance of the “when HOPE to FEAR” moment we are looking for in 2010. This DOES not include BANK and brokerage debt (totaling OVER a trillion dollars) which must roll. And, of course, what about the private sectors’ funding needs which are not included here.
|
Realcent.forumco.com disclosure. Please read.
All posts either by the members, moderators, and the administration of http://realcent.forumco.com are for your edification and amusement only. It is not the intent of realcent.forumco.com or its host to provide investment, medical, matrimonial, legal, security or tax advice and nothing posted here should be considered to be so. All rights reserved.
Think positive. |
|
10% inflaton now.
Forum Locked
