Tuesday, February 7, 2012


But monetary policy is not fixing the problem....only preventing the solution from taking place. Lines of unemployed in many areas are becoming less and less as the masses begin to just give up. Of course there are plenty of anecdotal examples of people abusing the system but more and more its becoming clear that the future for the millions of unemployed that truly want jobs is becoming dim.

Of course this doom and gloom is not what you want to hear and it is not what the government wants you to hear. Unfortunately the solution will be found ONLY when the problem is fully admitted and confronted. Therein lies a bit of a problem. The System would then open a massive can of worms. It would have to admit that there had been lies. Yes.....I know...its hard to believe, but there may have been a bit of state sponsored "deception". Truthfully that doesn't sound that bad. Just one little problem. Once you open that can of worms.......its just uncertain how many might crawl out and just what the consequences might be. It would be easy to throw a few Enron patsies to the masses but now you could open a massive tsunami that could expose the very puppet masters themselves eventually. Once that snowball starts to roll it just might create an avalanche.

Bottom line.... to fix the problem requires too much risk to the ponzi......so the solution will continue with the current policy of printing money.....and printing...and printing. Of course this will eventually roll back into the system with inflationary consequences but this could be several years down the road. Between now and then Bernanke has to fight deflation with the printing press and stagflation should be in full force before this year ends. The costs of essentials are about to rip the hearts out of the most vulnerable. This will put more pressure on the government to contain the disenfranchised as they become increasingly angry. Of course they will contain the  outcry. Don't be deluded by your private gun ownership. That will be easily controlled. Guns will ONLY protect you from home invasions. Any posturing against the state will be dealt with easily and swiftly. So forgettaboutit and think about your family instead.

Here are the charts.


  1. Morning,

    I hope you don't mind but I wanted to take the liberty to ammend just this one sentence;

    "The costs of essentials are about to rip the hearts out of the most vulnerable" to

    The costs of essentials "is ripping" the hearts out of the most vulnerable "and is becoming unbearable for many".

    from: John Williams'Shadow Government Statistics


    take note of the lower chart..... Using 1980 calculations SGS has Annual Consumer Infaltion pegged at a bit over 10%.......

    Of all the animals, man is the only one that lies.

    Mark Twain

    1. totally correct tom........the drain has already begun and will accelerate to maximum pain levels before the spigots stop......and THEN the pain will become even WORSE

  2. Here is an article you will enjoy.

    Is 4 million dollars a lot of money? Well,...maybe not.
    At 2% annual inflation, 4 million dollars will only have the purchasing power of 2.2 million, 30 years from now. At 4% inflation, the purchasing power will be 1.2 million in 30 years.

    If your 4 million earns 4% yearly, that is $160,000 per year. But, at 2 % inflation, 30 years from now, the purchasing power would be $88,000. At 4% inflation, would be just $49,000.


    1. yeah doc....i give that same speech periodically to people to illustrate just how bad they have screwed the pooch.....very well put

  3. FCEL has broken out on incredible volume. Looks like it could run for a while.

  4. taking gold down again...this is still expected here....lets see if they can get it to that 1680 level and hold........

  5. Funny, I have an article from The Chicago Tribune in May, 1981 showing the purchase power halved from 1970...in fact, it has graphs showing $59,012 in income needed in '81 to keep up with $25,000 in '70. This is exactly when gold went on its huge runup...I worked at a Chicago Bank back then ('79-'81) and remember it well. Unfortunately, I didn't understand the dynamic and didn't invest in the PMs. So no real economic gain for millions of Americans is nothing new.