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Escape Of The Inflationary Cat

April 15, 2011 by  

Escape Of The Inflationary Cat

Oops! I’m sure that’s the thinking of some of Federal Reserve Chairman Ben Bernanke’s underlings to the CNBC story that United States core producer prices rose slightly faster than expected in March, “pointing to a broadening in the pipeline inflation pressures,” as CNBC framed it.

Oops. The cat’s out of the bag, to coin a phrase. They tried so hard to keep it a secret. How else to explain the fact their indexes for monitoring inflation exclude food and energy, ostensibly because of their volatility.

Of course, only the elites are surprised. Those of us who’ve been buying groceries and filling our cars with gasoline on our way to and from work have been feeling the pinch for some time.

And regular readers of Personal Liberty Digest™ shouldn’t be surprised. After all, I’ve been warning you about inflation for a very long time. It’s an inevitable outcome as Bernanke’s printing presses work around the clock.

Bernanke wanted QE2 to prop up the stock market and give the illusion that wealth was being created… that the economy was okay. He’s propped up the market alright, and his bankster and Wall Street buddies are grateful.

Out here where the cows graze (or the widgets get made or the service is performed, etc.), folks aren’t quite as happy. And trading that gas guzzling SUV for more gas-friendly model—as President Barack Obama so snidely suggested a couple of weeks ago—isn’t an option if you’re already underwater on both your home and that SUV, your job has either been eliminated, your salary cut or hours reduced and that $150 weekly grocery bill has climbed to $175 or more.

Now President Barack Obama and Congressional Republicans are arguing over cutting pennies and promising to do something to help the economy. But a recent Rasmussen poll showed that 45 percent of likely voters fear the government will do too much to help the economy.

Oops, indeed!

Bob Livingston

is an ultra-conservative American and author of The Bob Livingston Letter™, founded in 1969. Bob has devoted much of his life to research and the quest for truth on a variety of subjects. Bob specializes in health issues such as nutritional supplements and alternatives to drugs, as well as issues of privacy (both personal and financial), asset protection and the preservation of freedom.

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  • TIME


    Your dead on, I am sure that our special class of leaders found in that funky Triangle called the “DC Beltway” will be able to reduce spending by at least, well nearly at least .00000000001 Cents per year until than have sucked the life bloody life out of every single person who breaths air.

    And how will they do all this special work, by making “LAWS” to protect them for all of you.
    Thats right the criminals make U the criminals.

    Butta Bing, Butta Boom U’s get da deal hey, U’s mess with da Boys and U’s gonna be taking a trip to see da fishs. And like I means da fishs una da watta. Day don’t be needing no stinking Inflations da gotta system ting.

    • Elena T

      “This is going to be a very serious economy recession and I think, in the near future, the most we can hope for it is to make it less down/ worse than we may imagine of it.”

      I agree all the businesses STILL closed. NO jobs are really being created, the Housing MESS, people becoming more and more desperate for money-jobs. Gasoline and food prices continued to rise and together accounted for almost three quarters of the seasonally adjusted all items increase in April. The gasoline index posted its ninth consecutive increase and has now risen 14.4 percent over the last three months.

      So the next question is what now? Get rid of those wrong politicians in chief offices. Can we hold those previous folks accountable? No because that’s how the system is set up. Great weather really helps a lot when you can’t afford a place to live or put food on the table because there are no jobs and the cost of living is astronomical compared to previous years. People want to live where there’s a decent economy and hope for the future.

    • Thamera

      Loved your post TIME…made me smile in spite of the impending doom upon us :D

      • TIME


        We all need to snile and just out right laugh now and then.
        If not we would with out question go bloody bonkers. When many here post Common sense that fails to get responses that make sense even to a rock from some of the Nano Wits who post here.

        So I was really trying to make the week end on somewhat of a happy note in the face of all the utter insanity; day after day, week after week, month after month, leading to year after year, it sure gets old.

    • EddieW

      The game is rigged against us!! There is NO inflation…because, they have taken Food and Energy OUT of the inflationary index!!! Food can Quadruple, and there is NO inflation…The BIG LIE prevails!!
      Gas can go to 10.00 a galloon and there is NO INFLATION…it’s not part of the inflation index…YET…this summer when China’s 30% price increase comes due…THEN…we will have some inflation…even according to Government standards!! They should put the inflation index on the price of land in Chile…it don’t go up much!!!

    • JC


      Suppose that every day, ten men go out for beer and the bill for all ten comes to $100…

      If they paid their bill the way we pay our taxes, it would go something like this…

      The first four men (the poorest) would pay nothing.
      The fifth would pay $1.
      The sixth would pay $3.
      The seventh would pay $7.
      The eighth would pay $12.
      The ninth would pay $18.
      The tenth man (the richest) would pay $59.

      So, that’s what they decided to do..

      The ten men drank in the bar every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve ball. “Since you are all such good customers,” he said, “I’m going to reduce the cost of your daily beer by $20″. Drinks for the ten men would now cost just $80.

      The group still wanted to pay their bill the way we pay our taxes So the first four men were unaffected. They would still drink for free. But what about the other six men ? How could they divide the $20 windfall so that everyone would get his fair share?

      They realized that $20 divided by six is $3.33. But if they subtracted that from everybody’s share, then the fifth man and the sixth man would each end up being paid to drink his beer.

      So, the bar owner suggested that it would be fair to reduce each man’s bill by a higher percentage the poorer he was, to follow the principle of the tax system they had been using, and he proceeded to work out the amounts he suggested that each should now pay.

      And so the fifth man, like the first four, now paid nothing (100% saving).
      The sixth now paid $2 instead of $3 (33% saving).
      The seventh now paid $5 instead of $7 (28% saving).
      The eighth now paid $9 instead of $12 (25% saving).
      The ninth now paid $14 instead of $18 (22% saving).
      The tenth now paid $49 instead of $59 (16% saving).

      Each of the six was better off than before. And the first four continued to drink for free. But, once outside the bar, the men began to compare their savings.

      “I only got a dollar out of the $20 saving,” declared the sixth man. He pointed to the tenth man,”but he got $10!”

      “Yeah, that’s right,” exclaimed the fifth man. “I only saved a dollar too. It’s unfair that he got ten times more benefit than me!”

      “That’s true!” shouted the seventh man. “Why should he get $10 back, when I got only $2? The wealthy get all the breaks!”

      “Wait a minute,” yelled the first four men in unison, “we didn’t get anything at all. This new tax system exploits the poor!”

      The nine men surrounded the tenth and beat him up.

      The next night the tenth man didn’t show up for drinks, so the nine sat down and had their beers without him. But when it came time to pay the bill, they discovered something important. They didn’t have enough money between all of them for even half of the bill!

      And that, boys and girls, journalists and government ministers, is how our tax system works.
      The people who already pay the highest taxes will naturally get the most benefit from a tax reduction.
      Tax them too much, attack them for being wealthy, and they just may not show up anymore.
      In fact, they might start drinking overseas, where the atmosphere is somewhat friendlier.

      David R. Kamerschen, Ph.D.
      Professor of Economics.

      For those who understand, no explanation is needed.
      For those who do not understand, no explanation is possible

      • Dan az

        very good but you forgot the bush did it!

        • JC

          Funny Dan…
          But being a Libertarian, I don’t get into the left / right blame game.
          They all suck and none of them represent me. The Constitution represents me. :)

  • Lastmanstanding

    Bernanke is the head of the FED. Who is the FED?
    Read: Rothschild Money Trust (RMT) by George Armstrong. it was written in 1940… REMARKABLE. Read: The Creature from jekyll island…Atlas Shrugged, Road to Serfdom, 5000 year leap, A patriots history of the US, etc.

    RMT tells the whole story and was written in 1940…Amschel Rothschild embezzeled money from a man who had a private army in britian at the time of the American revolution. This man’s army was hired (by the British govt.) to come to the US to put our uprising down. We all know how that one worked out. This money is still in play today. you want more truth…read the book. Infact, you don’t have to read the whole book. 100 pages or less will do.

    If you don’t have time to read…

    This research is free or you can donate if you like.
    The info isn’t right or left…do yourself a favor.

    I will stand firm for your kids and grandkids…will you stand for mine?

    • Thamera

      Yes I will Lastman and btw I really found comfort in your description of the icy stream where you stop and say a prayer (from the other day) Thank you for that.

      • Lastmanstanding

        A prayer for you and yours as I will be stopping later today. I always do a ‘baptism’ of sorts. The waters are so cold from the snowmelt that it can be felt thru every inch of your body just by touching ones forehead…THAT IS THE FREEDOM AND LIBERTY THAT GOD GAVE US!

        Now…if you haven’t already…check out

  • Bert Cundle


  • Robert Palmer Smith

    Dear Mr.Livingston,
    As you may recall after your last post covering inflation, I implored you to continue to remind your readers what a horror inflation really is. As an “expert” on the subject I took the liberty of refering you to my book entitled DARKEST TRUTHS OF BLACK GOLD in which I detailed how I had paid C$700,000.00 for a temporary membership in the Shanghai Club in Shanghai in 1948. As an example of the horrors, I told the story of how the bartender in the Shanghai Club would always draw two draughts of beer when I ordered one. He knew that I would order the second and more importantly he was looking after my well being. He was well aware that the price of the second would rise before I had finished the first.
    My company, Caltex, published prices on a daily basis and not only were they published on a daily basis but the prices were escalated on an hourly period. If this administration continues to allow Bernake to keep printing money I fear that I may find myself back in Shanghai in 1948.
    I’m glad to read that you have continued to point out the horrors of inflation but, unfortuneately, unless we replace this administration I will truly be back in the DARKEST TRUTHS OF BLACK GOLD.
    Sincerely and thanks,
    Robert Palmer Smith

    • Lastmanstanding

      RPS. Great post. I’ll get your book and read it.

      Few watch the dollar index. Tick up…couple ticks down. couple ticks up…12 ticks down. My point…it is going down and that means inflation. Slowly, slowly they devalue the dollar.

      Simple economics, the more there is of something, the less it’s worth.

  • Dan az

    During the month of March, according to the Treasury, the federal government grossed $194 billion in tax revenue and paid out $65.898 billion in tax refunds (including $62.011 to individuals and $3.887 to businesses) thus netting $128.179 billion in tax revenue for March.

    At the same time, the Treasury paid out a total of $1.1187 trillion. When the $65.898 billion in tax refunds is deducted from that, the Treasury paid a net of $1.0528 trillion in federal expenses for March.

    That $1.0528 trillion in spending for March equaled 8.2 times the $128.179 in net federal tax revenue for the month.

    • Lastmanstanding

      Dan az, sounds to me like you get the Stansberry Report! Good job!

  • Dan az

    From the mouth of babes.
    The federal government’s cash-flow situation was summed up pungently in Senate Budget Committee testimony by Erskine Bowles, who served as chief of staff to President Bill Clinton and is now the co-chair of President Barack Obama’s National Commission on Fiscal Responsibility.

    “I’m really concerned,” Bowles told the committee last month. “I think we face the most predictable economic crisis in history. A lot of us sitting in this room didn’t see this last crisis as it came upon us. But this one is really easy to see. The fiscal path we are on today is simply not sustainable.

    “This problem is going to happen, like the former chairman of the Fed said, or the Moody’s said, this is a problem we’re going to have to face up,” he said. “It may be two years, you know, maybe a little less, maybe a little more. But if our bankers over there in Asia begin to believe that we’re not going to be solid on our debt, that we’re not going to be able to meet our obligations, just stop and think for a minute what happens if they just stop buying our debt.

  • Dan az

    These guy’s went to college,I’m impressed!!!!!!!!

  • Dan az

    Here are the 12 warning signs that hyperinflation is imminent:

    1) The Federal Reserve is buying 70 percent of U.S. Treasuries. In recent months, central bank purchases of U.S. treasuries have declined from 50 percent to 30 percent, while Fed purchases have increased from 10 percent to 70 percent.

    2) The private sector has stopped purchasing U.S. Treasuries. The private sector, once responsible for purchasing up to 30 percent of U.S. Treasury debt, has stopped buying Treasuries. At the same time, top bond funds, like the PIMCO Total Return Fund, once the largest private sector owner of U.S. government bonds, has reduced its holdings of U.S. Treasury debt to zero.

    3) China has begun moving away from the U.S. dollar as a reserve currency. Today, the dollar is no longer backed by gold, and China has the world’s largest manufacturing base. The People’s Bank of China has agreed to allow the yuan to be used as a reserve currency. All China needs to do is use its $1.15 trillion in U.S. dollar reserves to accumulate gold and use that gold to back the yuan.

    4) Japan is beginning to dump U.S. Treasuries. Japan is the second largest holder of U.S. Treasury debt, with $885.9 billion in U.S. dollar reserves. Japan may have to spend as much as $300 billion over the next year to rebuild after the compound disaster of the recent earthquake, tsunami and nuclear meltdown. Japan is likely to reduce their Treasury holdings and slow their purchases of new Treasuries as the nation focuses on rebuilding.

    5) The fed funds rate remains near zero. The Fed has held the fed funds rate at 0.00-0.25 percent since Dec. 16, 2008, a period of 27 months. This low of a rate is unprecedented, with banks being flooded with excess liquidity of U.S. dollars. The dollar has become the new “carry trade,” available for member banks to borrow at zero and use for speculation in the stock, commodities and currencies markets.

    6) Year-over-year CPI growth has increased 92 percent in three months. An increase in year-over-year CPI (Consumer Price Index) growth from 1.1 percent in November 2010 to 2.11 percent in February 2011 means that the CPI’s growth rate has increased by approximately 92 percent over a period of just three months.

    7) Mainstream media denying Fed’s target passed. The media are now claiming that the Fed’s informal inflation target of 1.5 percent to 2 percent is based off year-over-year changes in the Bureau of Labor Statistics core-CPI figures. Core-CPI excludes food and energy prices. Including food and energy in the calculation would leave no doubt that the Fed’s inflation target is not being met.

    8) Record U.S. budget deficit in February 2011 was $222.5 billion. The federal budget deficit in February 2011, $222.5 billion, was more than the entire fiscal year of 2007. February’s deficit on an annualized basis was $2.67 trillion.

    9) High budget deficit as percentage of expenditures. The projected U.S. budget deficit for fiscal year 2011 of $1.645 trillion is 43 percent of total government expenditures in 2011 of $3.819 trillion. That is almost the same level of Brazil’s budget deficit as a percentage of expenditures just before Brazil experienced hyperinflation in 1993, and the ratio is higher than Bolivia experienced right before Bolivia’s hyperinflation in 1985.

    10) Obama lies about foreign policy. Obama campaigned that he would take troops out of Iraq. Now Obama has increased troop levels in Afghanistan, and he is on the verge of sending troops into Libya, causing a third U.S. war in the Middle East. The U.S. is now spending $1 trillion annually on military expenses, including the costs of maintaining more than 700 U.S. military bases in 135 countries around the world.

    11) Obama changes definition of balanced budget. Obama has recently redefined “balanced budget” to exclude interest payments on the national debt because the White House knows interest payments are about to explode and it will be impossible to truly balance the budget.

    12) U.S. faces largest ever interest payment increases. The U.S. is almost certain to experience a large spike in long-term bond yields, as creditors demand more compensation for financing U.S. debt. Interest payments could reach $500 billion within the next year or two, and more than $1 trillion by mid-decade. When interest payments reach $1 trillion, interest will account for 30 to 40 percent of government tax receipts, up from interest payments being only 9 percent of tax receipts today. No nation has ever seen interest payments on national debt reach 40 percent of tax receipts without experiencing hyperinflation.

    • Thamera

      Good post but depressing :(

    • Lastmanstanding

      Dan az…you are so busted!!! I love the truth!

      All, Don’t fall victim to the “Normalcy bias.”

  • Dan az

    Hope and change and transparency,Boy we need allot more of that!Who do you think is going to benefit from all of this?Doe’s NWO ring a bell?
    Please people wake up and smell the coffee we are at the cross roads.The signs are there all you need to do is open your eyes.I’m not college educated just street smart and have a good deal of common sense and if I can see it why cant you!

    • DaveH

      It is transparent in the sense that Government is openly pushing to ruin our economy and make us its slaves.

  • http://com i41

    dan in az, when libatards blame high energy costs on GW, he had given the 2006 report from Stansbury Report when Gw told the beltway agancy bastard to fast track and get to dtilling on the 2 triikion barrel basin. We have 4 f–king democrap senators that have been office for average of 25 years a peice, so can not lie like their purple marxist muslim leader does all the time. Since I have my other siblings or cousins wwho live in these states, call the bastards out at their whore camp meetings and ask why they sat on the info from the Satansbury Report given to them by GW when we all were paying $4.75 a gallon? Thety all have been asked to leave the meetings and when they go to anyother public meeting the questions are all now handed in and approve to be asked. One of my brothers raised hell if this was a open meeeting why the hell did League of Women voters kick out the hard questions and go for for all th soft ball feely meely questions. The staff again asked several realatives in other states meetings to leave. Any one that doesn’t think all democraps ain love with the marxist/communist socialist form of government, who controls the media? Prove me wrong!

  • s c

    Ben the Boob is a royal horse’s asset. For someone who theoretically knows more about the Depression than anyone else, he sure finds ways to ‘ignore’ his vast knowledge. A royal horse’s asset is a royal horse’s asset. FLUSH THE FED!


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