On June 28, Senators Jim DeMint (R-S.C.), Mike Lee (R-Utah) and Rand Paul (R-Ky.) introduced the Sound Money Promotion Act, which would allow legal tender gold and silver coins to be considered in the same manner as United States currency for taxation purposes.
Nominal dollars are the everyday paper dollars that we think of and call money. These dollars change every day (depreciate). The value of these dollars goes down constantly as the money printers continue to debase our currency.
On Wednesday, lawmakers in Athens, Greece approved an austerity package for the country, bowing to the demands of international lenders. The 155-138 vote passed as riots and protests continued in the nation’s capital.
Blood is being spilled in Western democratic cities like Vancouver, Canada, and Athens, Greece. With America’s economy stuck in recession and with the dismal and arrogant leadership provided by President Barack Obama and Congress, it is not hard to imagine similar violence in American cities.
Ben Bernanke is stumped. That’s what the Federal Reserve chairman told The Associated Press last week. The AP report said: “Fed Chairman Ben Bernanke told reporters Wednesday that the central bank had been caught off guard by recent signs of deterioration in the economy. And he said the troubles could continue into next year.
Hyperinflation, aka runaway inflation, is becoming a very real possibility to millions of Americans who heretofore clung to their weekly visits to Outback Steakhouse and the feel-good mantra of “American exceptionalism.” Considering this, my memory takes me back to my teenage years.
The world economy is in a very fragile state, despite the fact that world gross domestic product is growing at a rate of about 4.3 percent this year. Most of the growth comes from emerging markets like China, Brazil and India. What differentiates these nations from the West is they typically have much lower levels of debt.
“We’re on the verge of a great, great depression. The (Federal Reserve) knows it.” So said Peter Yastrow, market strategist for Yastrow Origer on CNBC Wednesday. Yastrow’s point: Money managers can’t find an investment they feel is a safe haven for their investors. That’s because the Federal Reserve’s Ponzi scheme has been exposed for the fraud it is.
A lot has been written about commodities and precious metals in the recent past. While some investors believe that we are in the middle of a super cycle for commodities and precious metals, others think that there is already too much speculation built into current prices; that we are in a speculative bubble that will have to burst eventually.
*To balance your budget, just do this. The wackiest headline of the week came from CNN.com, which promised “No inflation unless you eat.” Doesn’t that make you feel better? Your paycheck is bound to stretch far enough, if you persuade your family to go on an all-air diet. Oh, while you’re at it, you had […]