Saturday, October 29, 2011

Europe: Next Crisis - A NO Vote= Stagflation Reality...LIARS and CROOKS

The news from Europe that it indeed had reached a "Grand Plan" sparked a worldwide rally in stocks, especially in the financial industries. The idea is the lending institutions holding Greek paper would receive 50% less on the current loans and with everyone providing more money to control any other outbreaks of financial contagion all would be fine and these very same lending institutions would recover the losses through new loans and having the safety net of the rescue fund. What the plan lacks of course is a finalized agreement on paper and on Tuesday the Greek government decided to put it up as a national vote. Needless to say, panic hit the world markets and for desert MF Golbal declares bankruptcy. This is only surface problems, as none of these world expert economist or central bankers have the foresight to see what is happening at the moment. The current trend in world prices will destroy their projections on income and growth and as for future expenses, all the unfunded obligations will multiply because of present price increases. And of course, I can't get my book published.
Future is Here
All the Western Nation's are deep in debt, nothing new here, but the debt that I refer to is unfunded obligations which are debts that will be coming forth in the near future which will crush all the so-called facts and figures that they just released in Europe and soon to be released by the Super-Committee in the U.S. on November 23rd, next month. This turkey can be basted, have all the herbs & spices, but it is spoiled poultry and no chef in the world can save it.
At the moment the strongest nation in Europe is Germany, but few realize that Germany is racking up many unfunded obligations and all these resue packages is adding to their dilemna as well as all the other members of the Euro. Germany has a future of 418% more debt than its GDP and it will be coming due. Things like funding companies, pensions, insurance to projects, past bonds that are maturing. France is worse. They will have 549% of debt to GDP that is coming due. And these are the leaders of Europe?
Who is going to bailout the bailouters?
The U.S. is in the same boat. Our future debt is 5-times our present GDP and we face a series of conundrums. One, our revenues are falling, but our spending is increasing. We spend $3 dollars while we only collect $2 dollars out of every $5 dollars. At the moment it adds up to $46,000 per person. Do you have yours? I don't. This is worse than the Titanic. This boat sinks off the entry into the water. The second issue is the very tricks and schemes that our government uses to steal our money makes them blind to their actions. They did not see the housing bubble. Why? There schemes showed housing as a rising sector for employment and not a runaway price bubble. What I'm referring to is the government agencies that report the different aspects of our economy. For instance, the consumer price index. This has been massaged so much that it is nothing but bureaucratic B.S. They do not include food and energy because they say they are too volatile. Yeah, they keep rising! They say for instance, a new house rose in price, but it is actually cheaper because it has new efficient appliances. Yes, we should build more. We will get better employment numbers. More revenues. Idiots!
And the other reason that they don't see problems is because the appointees are selected by "soft" money who do the status quo bidding. This is why MF Global failed even though the rating agencies just supported one of their bond offerings.
Bottom line: government uses this logic from these people to lower the projections of inflation. Inflation, according to the government and the Fed is within their guidelines of 2% to 3%. Meanwhile, we all know that gas is up $1.19 this year, coffee, sugar, food all up 200% and this brings me to the conclusion that we are in a stagflated economy which is the worse economy. Stagflation means things that are needed like food and energy along with everything else rise in price, while our wages remain stagnant or decline. I already provided food and energy and a trip to the supermarket will confirm the prices, so let us look at the other side of the equation. We have 14 plus million people unemployed. We have another 6 million underemployed which means stagnant to lower wages with everyone else other than the rich in the same boat. The only reason no one has reached this conclusion is because it looks different than the 1970s version of stagflation.
One of the disguises is from the food industry. They feel the price increases, but they choose to hold them as a "cost bubble." They have limited their price increases, but they have resorted to one of their favorite tricks, size.
In Food It Matters.
They present the same size can, package or box, however if you look closer you will see that it contains less product. The 16 ounce can now only has 12 ounces of product which in my math is 25% less and there is your cost bubble. They also have utilized the discount stores with oversize packaging. You buy in bulk. It is great for them because they sell more product whether you need that much or not and they only have to ship it in one size which lowers their cost.
The government uses the Fed in the same way. They need money and no one will buy their bonds except the Fed who prints more money which dilutes the purchasing power of our dollar and this is stealing. In fact, even if you use their cheating, lying figures that the government releases for your future retirement, this is the bottom line: For every $100,000 that you save, in ten years, it will only purchase $77,000. The reality is inflation is over 9% which lowers your $100k down to $37K. How do you like that math? The dollar has fallen 66% in relation to the Euro since 2002. That is why we need to End the Fed!
Final Comundrum
When you add the unfunded liabilities like social security with its 77 million baby boomers, Medicare, Freddie&Fannie Mae and all the rest to the present deficit, it is clear that we are the worst nation on earth and no one will help us. Keep in mind that the Euro idea is to combat the U.S. in world trade. It is in our best interest that it fails along with all the other emerging nations who at the moment are making plans to replace the dollar as the worlds reserve currency. No one is our friend in reality. Globalization is a lie that promotes the outsoucing of jobs, ruins our standard of living and destroys our dollar.We may need world trade is some things and instances like resourced starved nations, food shortages, however no one needs to make something that you can make yourself. If we allow the two corrupt political parties to maintain their power structure, we are doomed to suffer a decade of stagflation and things will only get worse. We need to end the Fed! We need to form a new political party that represents the thinking of Jefferson and Madison. We need to Evolve Our Democracy.
LIARS and CROOKS: The Fed who will give us more suffering as on Halloween Night this year our debt will surpass our GDP. Our government gives treats to the rich and tricks to the rest of us.