Understanding Inflation

VIDEO: This is extremely important given that Obama's Fed Chairman (Ben Bernanke) is considering another round ("QE3") of "printing" money!

Impending U.S. Bond Market Armageddon

The US Treasury market is now in an out-and-out bubble. When it bursts, no amount of promises by Federal Reserve chairman Ben Bernanke that he will keep rates low will prevent a bond market Armageddon.

Ben's promises are empty

HAT TIP: Real Clear Markets

ALAN GREENSPAN: No chance of default...

Greenspan on Meet the Press: No Chance of Default. Really?

Quick: Someone tell the President!

“The American people are going to be outraged when they understand what has been going on...”

“What in the world are we doing thinking we can pass out tens of billions of dollars to banks that are overseas?” said [Ron] Paul, who has advocated abolishing the Fed.

The International Monetary Fund issued a report Thursday on a possible replacement for the dollar as the world's reserve currency.

Traders were also digesting comments from Federal Reserve chairman Ben Bernanke, who told Congress Wednesday that despite a strengthening economic recovery, the unemployment rate remains high while inflation is "still quite low."

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VAT: the end of economic freedom as we know it

The reason why elites in Washington would look to a VAT before increasing income taxes (and, believe me, higher income taxes are coming) is because not enough of the population even pays income taxes to make it worthwhile for the government to use the income tax structure to balance the budget... the government can extract the most amount of your wealth from a national sales tax.

Obama’s National Sales Tax

Dollar loses reserve status to yen & euro

Bernanke could go down in economic history as the man who killed the greenback on the operating table.

After printing up trillions of new dollars and new bonds to stimulate the US economy, the Federal Reserve chief is now boxed into a corner battling two separate monsters that could devour the economy -- ravenous inflation on one hand, and a perilous recession on the other.

"He's in a crisis worse than the meltdown ever was," said Peter Schiff, president of Euro Pacific Capital. "I fear that he could be the Fed chairman who brought down the whole thing."

..."The stimulus is what's toxic -- we're poisoning ourselves and the global economy with it."

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A graph is worth a thousand words

Unless we cut spending now, we’ll be setting up an inflationary ride like nothing we’ve seen before.

Tell us something we don't already know

June 3 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke said large U.S. budget deficits threaten financial stability and the government can’t continue indefinitely to borrow at the current rate to finance the shortfall.

No shit! I knew that. Maybe somebody should have told Obama and the Democrats before they dug this ridiculous hole we're now in.

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"President Obama's team, unlike Bush's team, demonstrates a thinness of skin that shocks me."

Cramer Takes on the White House, Frank Rich and Jon Stewart

President Obama's team, unlike Bush's team, demonstrates a thinness of skin that shocks me. When I somewhat obviously and empirically judged that the populist Obama administration is exacerbating the crisis with its budget and policies, as evidenced by the incredible decline in the averages since his inauguration, I was met immediately with condescension and ridicule rather than constructive debate or even just benign dismissal. I said to myself, "What the heck? Are they really that blind to the Great Wealth Destruction they are causing with their decisions to demonize the bankers, raise taxes for the wealthy, advocate draconian cap-and-trade policies and upend the health care system? Do they really believe that only the rich own stocks? What do they think we have our retirement accounts in, CDs? Where did they think that the money saved for college went, our mattresses? Do they think the great middle class banks at the First National Bank of Sealy and only the wealthiest traffic in the Standard & Poor's 500?"

They exacerbated their insensitivity when President Obama proclaimed that he wasn't worried about the averages, dismissing them as traffic polls that go up and down in the short term. Ah, if only they went up occasionally and not down endlessly then I would believe the President's logic.

Don't get me wrong, Obama was dealt a terrible hand by the previous croupier. But this administration's handling of the banking crisis, something that has brought Citigroup (Stock Quote: C), Bank of America (Stock Quote: BAC), Wells Fargo (Stock Quote: WFC) and even JPMorgan Chase (Stock Quote: JPM) to their knees, has been devastating. The indecision of Geithner, who has floated to the media every single idea in his head, only to announce none orally, has created a vacuum that has allowed short-sellers to dictate policy.

As someone who just wants to help people preserve capital and help it appreciate when the time comes when it is not too risky to do so, I am appalled at the attack and badly want to engage in the issues and tone down the rhetoric. What's the point? The country's in crisis.

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Fraudulent “Credit Crisis” Paves Way for Economic Disaster

Doing the kind of investigative reporting we should expect from the major media, a financial research and consulting firm has released a major analysis of the “credit crisis” that concludes that the claims made by Treasury Department Secretary Henry Paulson and Federal Reserve chairman Ben Bernanke to justify a socialist takeover of the financial industry were demonstrably false.

The analysis, Flawed Assumptions about the Credit Crisis: A Critical Examination of US Policymakers, concludes that the result of the unjustified massive federal intervention in the economy could be similar to the economic crisis in the Weimar Republic of 1922, where disastrous hyperinflation made the currency worthless and threatened the nation’s political system and stability.

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