U.S. Exporting Runaway Inflation Across The Entire World With Its Reckless Money Printing
March 14, 2011 by Bob Livingston
Nations across the globe are now dealing with food riots and anarchy.
The weather and inflation are leading to an explosion in prices and civil strife. Wheat prices have doubled in seven months, corn has increased more than 90 percent and soybeans have surged more than 55 percent. The fear of inflation is not child’s play. It carries the potential for even higher oil prices than those caused by the turmoil in the Middle East.
This brings to mind, have you stored food as we have repeatedly advised for a few years now? This advice is now turning to a red alert warning. Now that the currency is in serious depreciation (inflation), we can store food at a profit by buying it ahead of inflation.
I have studied the collapse of money in Weimar Germany. There became great scarcity of food and the stores were empty. We have potential for this in America, plus the danger of food riots.
Since we live in the end times of fiat paper money, there is an inherent bias toward inflation, i.e., printing large amounts of paper money. Add all this to the fact that the government always changes its measure of inflation, always understating the numbers and all the while not even counting food, energy and housing. How’s that for deception?
The unavoidable and certain end result will be an even greater crisis than the world has yet seen. Massive sovereign bankruptcies, food riots and general chaos are the end result of trying to foment growth by inflation (printing money) and will end in tears.
Also, it is time and past time to accumulate gold and silver. Be sure to get some U.S. 90 percent silver coins. It will be the exchange money of choice when this system fails completely.
The time is soon coming when we won’t be able to get these coins. Up to now, buying gold and silver has been very profitable as measured in paper money. But now we are past the consideration of profitability. Our concern has changed 100 percent to survival.
Are we past reality? Do we believe that we have monetary invincibility and a sense of intellectual superiority against all warning signals to the contrary?
We see that in this year of 2011 politicians and governments will continue to try to deter the inevitable and rescue the unsalvageable with high-speed, high-octane created money. And look out below! This could be the crunch year for survival of the system. Precious metals and commodities may be the only things left standing.
Meanwhile, as we head for the final exits, precious metals, commodity producers (food, oil, iron ore, and other base metals) will all benefit from money printing.
The reason we buy commodity stocks with depreciating paper money is because commodity stocks have leverage. Up to a point they appreciate more than the currency depreciates.
One caveat is to know when to exit all paper in favor of real goods. That is why you should continue to visit Personal Liberty Digest.