Runaway Inflation Is Now Unavoidable

Bernanke has chosen to do the worst thing possible and that is an open ended qualitative easing. If you have savings or an IRA, expect to lose your shirt since interest will be held low and hyper inflation will lower the value of every penny you have. I suggest looking up the Weimar Republic in German history to get an idea of what is going to happen now.

Stock up on foods and goods while you can, your purchasing power is going to decrease very quickly now. Buying ammo would also be prudent since it will be going sky high after this news is absorbed.

Incompetent and suicidal are the only words I can find to describe this development. It looks like a desperate bid to influence the election.

Weekend Links: The Economy

It was quite a week for developments on the economic front.  I wish I could report it was good news.
First off, official unemployment hit 10.2% after October’s figures came in.  This indicates things are getting worse for the American worker – not better. Ed Morrisey at Hot Air has an excellent post on it including an updated Romer graph of what the stimulus promised to do versus what actually happened.  We are off the chart now.  Also from Ed is a post with links of what jobs were really saved by the stimulus, starting with California.  Hint: the state & federal governments aren’t honest.
Doesn’t get much more pointed than what India’s finance minister said when their central bank bought 200 tons of gold in order to reduce dollar holdings.  What did he say about the economies of Europe and the US?  That they had “collapsed.”  Asian countries are running from the US dollar now.
Makes the wrangling over how much to increase health care look silly if there won’t be any money at all.  Still, the Republican health care plan was rolled out Wednesday after having the CBO (Congressional Budget Office) go over the figures.  It would actually reduce the deficit by $68 million over a ten year span.  Sounds good compared to the trillion dollar increase in debt from ObamaCare.  Still, how will any of it be paid for? There is no answer on that, because there is no way to!

UPDATE:  I was wrong, the Democrats plan isn't a trillion dollar outlay, but $3,000,000,000,000 plus over 10 years according to the CBO! The Heritage foundation estimate comes in at $2.4 to 2.6 trillion.  This is insane.

The Dollar IS Dying

 A month ago, I posted about the U.S. dollar being in trouble.  Things have progressed in the short time since then, with a slew of new headlines culled from around the Net.

Let's start with the New York Post article Dollar Loses Reserve Status to Yen & Euro. In it, we learn that 63% of money being put into reserves by banks went to the Japanese Yen and the E.U. Euro in the last three months.  Traditionally, around 66% would be put in the dollar, but only 37% was. Over at Bloomberg, they report the same while pointing out that world leaders are following through on their threats to diversify.  Apparently, they don't approve of how U.S. economic woes are being handled by the new administration.

In another article at Bloomberg, they report that the dollar is down 10% against other currencies in the eight plus months Treasury Secretary Geithner has been in charge. In fact, they go so far as to call it the Obama Dollar. At this point, the current mess is now owned by the Obama Administration so I think the honeymoon is over. Meanwhile, the Pound Sterling is having problems as well, based on the fear that inflation is decreasing in the United Kingdom.

It looks like the shift from the Anglo currencies has finally begun, as the economies of the United States and Great Britain have lost the confidence of foreign investors.  Interestingly enough, these are the two countries that enacted the biggest stimulus packages during the current economic downturn.  I don't think this is a coincidence.

Runaway hyper inflation is around the corner, what with oil going up and consumers unable to spend more due to being tapped out on credit,with many losing jobs and giving up on full employment. I don't blame other countries bailing out on the dollar, as it is a race to get any kind of value back from what they sank into our treasury bonds before they become worthless. Talk of another stimulus will just continue the flight from the dollar and I think our political elites in both parties have failed the country and the world completely in how they've handled things.

It took a world war to bring the country out of the Great Depression.  I hope that won't be required this time.

Is the US Dollar Dying?

One of my regular reads is the online edition of the Daily Telegraph published in the United Kingdom.  It was interesting to see what the most read stories were today and I think you will see a unifying theme in them:

1. Barack Obama accused of making 'Depression' mistakes
2. China alarmed by US money printing
3. UN wants new global currency to replace dollar

Then on the other side of the page was Gold hits $1,000

With the Obama administration printing more green to buy government bonds because the Chinese won't, you know something is wrong.  Then you hear that the Chinese are moving slowly over to gold in order to keep their investments from deprieciating radically and off in the distance alarm bells begin to ring.  Finally, there has been talk between Russia, China, and India about starting a new currency because the dollar isn't looking sound, but hey, that's just a bunch of wannabe's talking, right?  Except now the UN is talking the same proposal a few week later.  Yeah, there is something seriously wrong with the US dollar when the biggest holder of US debt is publicly complaining and planning to move to something else.

Is the dollar actually dying?  Time will tell, but one thing is certain -- it is very, very ill.