April 25 AAII Sentiment Survey Graph - Data, commentary and chart
April 23 Gold and GLD Resistance and Support Levels Rally here or $1,040 next?? -------- Original Message --------
FWC: Why Bernanke Can't Stop Deflation
I am sure that you know where you heard it first. There are economics morons who have been calling for high inflation, hyperinflation, bond market crash, etc., for years and years (two morons, Marc Faber and Jim Rogers, have been calling for more than 10 years). The reason they are morons is that they don't understand how the US and the global economic system functions and what money really is. OBTW, there is no "Printing Money" going on in the US. It is part of the propaganda to make people worry about inflation when it fact the Feds (Federal Reserve and the Federal govt) have been fighting deflation for some thirty years by pushing consumption debt. They would lose that fight in a year or two at most. For more than 20 years Americans have been consuming more that they have been producing and the money has been borrowed mostly from East Asia. All such games end badly.
Deflation and depression are simply unavoidable with the massive consumption debt build up over decades. Are the Chinese who have been saving lot of money for decades stupid or are Americans stupid? If you don't believe that Americans are born-and-bred dopes then you don't know the power of propaganda in America in pushing consumption and debt. We are dealing with genuine morons. The best evidence is 12 years of GW Bush, Bernanke and Obama during which $14Tr. of consumption debt has been accumulated with only 2.5M additional jobs (without the consumption debt there would have been a loss of more than 10M jobs over the past 12 years). The US govt's job is to cater to the System of the Crooks and Bernanke was specifically chosen for that.
Jas
-x-x-x-x-x-x-x-x-x-x-x-
SPY At Record High And ECRI's WLI Growth Holding In Positive Territory
-x-x-x-x-x-x-x-x-x-x-x-
Why Bernanke Can't Stop Deflation
By: Clif Droke | Wed, Apr 10, 2013
While there are many risks to the current ultra loose money policy, consumer price inflation isn't one of them. Inflation remains persistently low despite the best efforts of central banks to increase it.
The Consumer Price Index (CPI) among the G7 economies was only 1.6%, year over year, during February. It was even lower at 1.4% excluding food and energy, according to economist Ed Yardeni. Meanwhile Producer Price Index (PPI) inflation rates are close to zero, Yardeni points out. In the euro zone, the CPI inflation rate is just 1.7%, and 1.4% excluding food and energy. Japan continues to experience deflation despite continuous efforts at reversing it through monetary easing.
"In the Brave New World (BNW)," writes Yardeni, "pumping more liquidity into financial markets won't stop consumer price deflation, but it will inflate asset prices, a.k.a. asset bubbles. Central bankers like Ben Bernanke at the Fed and Haruhiko Kuroda at the BOJ are still using models based on the 1930s. They are clueless about the BNW." Yardeni believes this is why central bankers are so committed to doing whatever it takes to avert deflation. They fail to realize that productivity-led deflation should be welcomed as the best way to boost the purchasing power of consumers, thereby increasing government tax revenues. …
Posts
