Lies. So damn many lies. They're like a trail of bread crumbs that will, ironically, eventually lead to the truth. "What is that truth?" you may ask. Gold baby! The Truthsayer. Gold is the single best asset to not only expose the lies, but protect you from them as well.
Perceptions are changing as each day passes. Even the ignorant are becoming cognizant. The scent of discomfort is beginning to stir the flock. The sheeple sense the Shepperd may have lead them astray. Few will realize they are on the road to the financial slaughterhouse until it's too late.
Captain Ben and the rest of the crew on the Good Ship La-de-da, realizing they're struggling to keep Titanic II afloat, have now resorted to lies their bought and paid for media surrogates find difficult not to laugh at. Inflation is fast becoming THE buzzword in the media and around the office water cooler. Denying it, lying about it, and blaming the price of Oil for it will not make it moderate or disappear. Inflation is on the rise globally. There are no ifs, ands, or buts about it. It is a fact and its is escalating quicker than any one believes or can imagine.
325 basis points cut from the Fed Funds rate, liquidity injections, cash auctions, $600 rebate checks. And that's just in the US. Monetary inflation is being pumped out of central banks around the globe. Who can devalue their money fastest to protect their exports? Global inflation is becoming an epidemic. And it doesn't look like there is a cure anywhere that is close to efficacy.
The effects of the Fed's initial interest rate cuts in Sept./Oct. '07 are just now beginning to be felt...six months down the road. It will be September 2008 as the FULL effects of Shepperd Ben's detour to the financial slaughterhouse begin to be realized. Gold will be flying high on the dismal 2nd qtr earnings that are ahead of us by then, and be primed to kick in the afterburners as the nation begins to come apart at the seams in an avalanche of credit defaults.
The future is bright...if today you are a Precious Metals investor. We may be able to keep our heads above water, barely. The Summer/Fall of 2008 could make 1968 look like a walk in the park. Prepare for the worst, and hope for the best.
The Daily Reckoning
But here's some good news:
Last month, the price of gasoline went down 2%, says the Labor Department.
Wait a minute. Do you remember gasoline prices going down in April? We don't. As we recall, oil prices were soaring…and so was the price of gasoline.
We're beginning to sniff something funny in the air…a rat.
It was largely thanks to this reported drop in prices at the pump that the Consumer Price Index registered a scant 0.2% increase for the month of April.
...we check the records from NY gasoline futures trading and find the price actually rose 12% in April. How come the feds put it down as minus 2%? Turns out, they made a 'seasonal adjustment.' But turning plus 12 into minus two sounds like more than an adjustment; it sounds like either magic or major surgery…like turning a prince into a frog or a fat man into a slim woman.
Bob Chapman, The International Forecaster
We have entered the eye of the storm as the BLS takes this opportunity to give us another lie about inflation, which is so preposterous that they have become the laughing stock of the financial community. If you can believe that core CPI was .1% and regular CPI was .2% last month, then you probably still believe in the Easter Bunny, Santa Claus and the Tooth Fairy, and by the way, we have a bridge for sale over the East River that connects Brooklyn and Manhattan - real cheap. This latest Paul Bunyan tale comes to you from the most recent performance of the fane-stream media's acting troupe at Theatre Bizarre courtesy of the pathological liars and script writers in the BLS who are in charge of compiling our economic data, a show which is of course sponsored by the Illuminati. This so-called "information" comes to us following news that March PPI and April Import Prices (ex-oil!!!) both increased by 1.1%, which is an annualized rate of 13.2%, while our own statistics about actual inflation show 12.375% for the CPI, and our calculations for M3 top 18%, which means that actual inflation is still rising to play catchup with M3. Food is up 37% yoy (which means an average monthly increase of 2.66%) while oil has rocketed from $101.58 per barrel on March 31 to $113.46 per barrel on April 30, an increase of 11.7% in one month (over 140% annualized!!!) after peaking at $119.93 per barrel on April 28. So that means one of two possibilities. Either the government is flagrantly lying about inflation, or corporate earnings are about to explode and go down in flames to a level so negative that the resulting anomalies in analysts' predictions will give the appearance that they have all collectively turned into crack addicts. If you are absorbing a 13.2% increase in the cost of your production, and then only passing on 2.4% out of that 13.2% to your customers in the form of increased prices, may we suggest that you have a gargantuan problem with your profitability. The tellers of tall tales can't have their cake and eat it too, although the Illuminist reprobates continually try because they know how dumb the sheople can be. As you can see from our actual inflation statistics, as you might expect, very few cost increases are now being eaten by the producers and most cost increases are being passed on to consumers. To do otherwise would be financial suicide, plain and simple. And may we add that either way, Goldilocks gets eaten by the Three Bears.
The Myth of Lower Oil Prices
Pinocchio’s spin meisters are working overtime as the most recent CPI, GDP and retail sales data were such a joke that even the main stream financial media were embarrassed to hang their hats on them. In the private sector this would be labeled PREMEDITATED fraud and you and I would be charged with disseminating false and misleading information to investors.
- Ty Andros
- Ty Andros
Why Inflation Is Going To Hurt This Time
Let us look, briefly at the oil market. When the US invaded Iraq, we were told that $10 oil was right around the corner. Then, as the war went from triumph to tribulation…the oil price rose. Still, the war’s backers believed they had done good. Higher oil prices couldn’t last, they said. The National Review said oil was a “bubble” in ’04, when it was at $50 a barrel. Then, Steve Forbes said it was a “bubble” at $70 a barrel in ’05. Now…a Goldman expert says it will go to $200 a barrel.
Let us look, briefly at the oil market. When the US invaded Iraq, we were told that $10 oil was right around the corner. Then, as the war went from triumph to tribulation…the oil price rose. Still, the war’s backers believed they had done good. Higher oil prices couldn’t last, they said. The National Review said oil was a “bubble” in ’04, when it was at $50 a barrel. Then, Steve Forbes said it was a “bubble” at $70 a barrel in ’05. Now…a Goldman expert says it will go to $200 a barrel.
Success leads to excess. Sooner or later oil really will be in a bubble…and sooner or later the bubble will pop. But when? At what price? China is doubling its use of the slick liquid every seven years. In the US, there are 480 cars per 1,000 people. In China, there are only 10. And China could be the world’s largest automaker in just a matter of months. Our advice to Americans: fill up your tanks.
http://www.dailyreckoning.co.uk/Economic-Forecasts/inflation-hurt-00144.aspx
http://www.dailyreckoning.co.uk/Economic-Forecasts/inflation-hurt-00144.aspx
When the illusion that the crisis is under control fades away…
Indeed, contrary to what they say (and maybe to what they really believe), there is no bottom to the pit that can stop the fall; or rather, there might be a bottom but its getting deeper day after day (11). Ironically, those who in the past years used to say that there was no limit to profit and benefit increases, are now trapped in a process where the bottom gets always deeper, where losses keep increasing endlessly as reference asset prices fall always lower, and where the only things that go always higher are energy and food prices. But isn't irony one of the only identifiable features of History?
http://www.leap2020.eu/GEAB-N-25-is-available!-June-July-2008-New-tipping-point-in-the-global-systemic-crisis-When-the-illusion-that-the-crisis_a1691.html
http://www.leap2020.eu/GEAB-N-25-is-available!-June-July-2008-New-tipping-point-in-the-global-systemic-crisis-When-the-illusion-that-the-crisis_a1691.html
Correction in Gold Near End
By: Jim Willie CB
Sadly, the insolvent US$-based economic and financial system has a long way to go before any recovery can be claimed. The four primary pillars of the federal budget deficit, the trade and current account deficit, the bank insolvency, and the rising tide of negative equity homeowners, these scream of ongoing need for remedy. All forms of remedy involve monetary inflation. The current approach has been careful and directed. The next steps will be much more broad and systemic in the face of desperation to avert collapse. Beware of civil disobedience toward mortgages. Beware of civil disturbances. Beware of open scuffles at gasoline stations. Beware of possibly food riots in poor neighborhoods. Being the newest Thrid World nation, the Untied States will see food riots similar elsewhere in the world. The system inside the US is moving toward chaos. An inflationary recession does that. Job loss and rising prices make for a nasty cauldron for emotions. The only known plan will be to produce enough inflation to keep the system running. The implemented cure will plant seeds for further crisis one year from now, and guarantee a severe change via disruption. The only safe place to be will be commodity investments that oppose the Great Paper Chase in dissolution, in particular precious metals and energy. My favorite remains silver, for many reasons.
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