We are in the threshold of inflation just like the post Vietnam era only worst. At the rate that this administration is squandering our money for a lost cause in Iraq, we have to pay an approximate sum of $180 M per day just to keep the war going. This will increase with the planned escalation of troops in the field. The Federal Reserve is printing more money (doubling the original M3) in circulation to pay for the war. Our money increase is chasing a finite amount of goods or resource, and as the principle law of economics follow too much money for a certain amount of goods, hence the inflation. However, since we are now in a global economy, it only gets worst. Other countries and mostly China with its growing economy, are competing with us for the same precious goods. Our dollars abroad have lost their value over 35% since 2000.
We are there already, as I predicted last January 2007, below are the result of Bush'es economic miracle, from a $3.5 trillion surplus to a $2.5 Trillion deficit in six years.Collapse of The Capitalist Model of Society As We Know It?
750,000 Americans Take 50% Drop in Social Security
For those of us who are living on fix income, we will be facing some rocky times ahead of us. Take stock of your savings, with the reality that it will only be half as worth. You can look at the stock increase, but with the past manipulation, the people's trust has a limit. There is also the opportunity at this period of inflation, that the Federal Reserve may pull the rug out of the money supply, in the guise of controlling inflation, similar to the depression of the 1930's. This scenario might be softened by the controls of the US government like the FDIC, however, as explained before, it has only one half percent cash available to back all bank deposits. With this scenario, all in play, the Federal Reserve will once again have the power of manipulating the policies of this nation, and shearing the wealth of the middle class, ( 4 years before the fall of stock prices in 1929, the member bankers of the Fed divested all their stocks, then when the stock prices were at the lowest, with their pockets flushed with cash, they bought companies at rock bottom prices, watch some of the video and look for those individuals who became super rich) by falling stock market prices. We will be in a deep recession as we face a critical period in our supposedly golden years..........................ASC
