10 replies to this topic

[pdx5]

Some snippets from:- September 19, 2007 Beware - the Bernanke Fed could Ignite Hyper-Inflation! by Gary Dorsch "You unlock this door with the key of imagination. Beyond it is another dimension, a dimension of sound, a dimension of sight, a dimension of mind. You're moving into a land of both shadow and substance, of things and ideas. It's a journey into a wondrous land, whose boundaries are that of imagination. That's a signpost up ahead, your next stop, the "Twilight Zone!" ---Rod Serling Nowadays, there are numerous signposts indicating that inflation in the United States is getting out of control. The US M3 money supply is 14% higher than a year ago, its fastest growth rate in 35-years, the US Dollar Index is plunging to 15to 15-year lows, gold is surging toward $725 /oz, a 28-year high, crude oil is cruising above $80 /barrel, wheat prices have doubled to $8.75 /bushel, an all-time high, and the Baltic Dry Freight Index has zoomed 300% higher to stratospheric levels. It's like entering "a fifth dimension beyond that which is known to man, that lies between the pit of man's fears and the summit of his knowledge. It is an area called "the Twilight Zone," Mr Serling explained. Could it be - the fifth dimension that lies ahead is hyper Inflation, and the re-ignition of the "Commodity Super Cycle?" Money is still pouring into commodity indexes to diversify portfolios, amid recent financial market turmoil, reaching $120 billion at the end of the second quarter, up 50% from a year earlier. However, on Sept 18th, Fed chief Ben "B-52" Bernanke, finally showed his true colors, exposing himself as a radical inflationist, by slashing the fed funds rate a larger than expected half-point to 4.75%. The Bernanke Fed panicked, lost its cool, in a desperate attempt to bailout Wall Street brokers who peddled toxic sub-prime US mortgage slime around the world, and saddled banks and hedge funds around the world with losses to their balance sheets that can exceed $150 billion. IMHO all signs point to a declining US$ and rising stock prices in cheaper US $. When priced in gold or oil or milk, SPX is down 60% or more from its high 7 years ago.

[SemiBizz]

If Greenspan's nickname (dubbed by Ayn Rand) is the undertaker. This Bernanke gotta be da Gravedigger...

[da_cheif]

Some snippets from:-

September 19, 2007
Beware - the Bernanke Fed could Ignite Hyper-Inflation!
by Gary Dorsch

"You unlock this door with the key of imagination. Beyond it is another
dimension, a dimension of sound, a dimension of sight, a dimension
of mind. You're moving into a land of both shadow and substance, of
things and ideas. It's a journey into a wondrous land, whose
boundaries are that of imagination. That's a signpost up
ahead, your next stop, the "Twilight Zone!"

---Rod Serling

Nowadays, there are numerous signposts indicating that inflation in
the United States is getting out of control. The US M3 money supply
is 14% higher than a year ago, its fastest growth rate in 35-years,
the US Dollar Index is plunging to 15to 15-year lows, gold is surging
toward $725 /oz, a 28-year high, crude oil is cruising above
$80 /barrel, wheat prices have doubled to $8.75 /bushel, an
all-time high, and the Baltic Dry Freight Index has zoomed 300%
higher to stratospheric levels.

It's like entering "a fifth dimension beyond that which is known to
man, that lies between the pit of man's fears and the summit of his
knowledge. It is an area called "the Twilight Zone," Mr Serling
explained.

Could it be - the fifth dimension that lies ahead is hyper Inflation,
and the re-ignition of the "Commodity Super Cycle?" Money is still
pouring into commodity indexes to diversify portfolios, amid recent
financial market turmoil, reaching $120 billion at the end of the
second quarter, up 50% from a year earlier.

However, on Sept 18th, Fed chief Ben "B-52" Bernanke, finally
showed his true colors, exposing himself as a radical inflationist, by
slashing the fed funds rate a larger than expected half-point to
4.75%. The Bernanke Fed panicked, lost its cool, in a desperate
attempt to bailout Wall Street brokers who peddled toxic sub-prime
US mortgage slime around the world, and saddled banks and hedge
funds around the world with losses to their balance sheets that can
exceed $150 billion.


IMHO all signs point to a declining US$ and rising stock prices
in cheaper US $. When priced in gold or oil or milk, SPX is down
60% or more from its high 7 years ago.

hyperinflation is the product of the world wide flite to free enterprise and democracy.......there are a few chinese thats gonna take care of what you think one person...(bernake)...is capable of.....geeziz eh...spx is rising.......its up 400% from its low of 13 years ago......

[Russ]

Da_Cheif said...

hyperinflation is the product of the world wide flite to free enterprise and democracy.......there are a few chinese thats gonna take care of what you think one person...(bernake)...is capable of.....geeziz eh...spx is rising.......its up 400% from its low of 13 years ago......

Hyperinflation is the product of irresponsible politicians that believe in stealing from future citizens to keep the money flowing to themselves and their constituents now. Thomas Jefferson tried to keep the USA on a relatively debt free system but his views were cast aside.

Hyperinflation eventually destroyed ancient Rome which just like the USA had armies all over the place that became impossible to support. Some scholars now say that Rome's wars with Persia (now Iran and Iraq) were a big factor in bringing down their civilization. Rome also removed the precious metals from their currency just as the US did. History seems to be repeating in a strange way. Next thing will be the declaration of an Imperial Emperor.

Edited by Russ, 19 September 2007 - 07:50 PM.

[da_cheif]

Da_Cheif said...

hyperinflation is the product of the world wide flite to free enterprise and democracy.......there are a few chinese thats gonna take care of what you think one person...(bernake)...is capable of.....geeziz eh...spx is rising.......its up 400% from its low of 13 years ago......

Hyperinflation is the product of irresponsible politicians that believe in stealing from future citizens to keep the money flowing to themselves and their constituents now. Thomas Jefferson tried to keep the USA on a relatively debt free system but his views were cast aside.

Hyperinflation eventually destroyed ancient Rome which just like the USA had armies all over the place that became impossible to support. Some scholars now say that Rome's wars with Persia (now Iran and Iraq) were a big factor in bringing down their civilization. Rome also removed the precious metals from their currency just as the US did. History seems to be repeating in a strange way. Next thing will be the declaration of an Imperial Emperor.

if 10 people want fish and there is only one fish.....the price of that fish is very high.......

[Russ]

if 10 people want fish and there is only one fish.....the price of that fish is very high.......

I agree that world-wide demand for resources is a big factor in inflation but hyper-inflation is something totally different that is the result of a watering down of the currency until it takes a wheelbarrow full of cash to buy groceries. Hyperinflation is extremely dangerous as the world saw in Germany a few decades ago, the social unrest and unemployment eventually leads to fascism and war. When people can't feed their families they get desperate and are ready to follow a Hitler. I certainly have no wish to see this kind of thing unfold but many well respected analysts think that it could eventually unfold.

Edited by Russ, 19 September 2007 - 08:14 PM.

[da_cheif]

2 old to wirry about it......snort

[SemiBizz]

I got a bright future then... I'm the best fisherman around... Munching on some fresh albacore sashimi at present...

[Sentient Being]

I'm not sure how valid comparing general stock values to Milk is. One of the major influences on milk is not monatary policy but moronic radicalized environmentalism run amock. Even Al Gore, the new God of "man is destroying the earth" says it's stupid to take crop land out of food production and into fuel production. Congress should be passing bills to make the use of food crops to produce ethanol illegal....instead of demanding more and more ethanol. But my point is, that particular commodity (Milk) at least in part is shooting to the moon because of bad environmental policy flowing out Washington which is in a pandering mode to radicals. Want to drink Milk? Then you have to pay the farmer enough per gallon to compete with the ethanol fuel companies for that grain his cows need.

[pdx5]

I agree on the enviro wacko's being responsible for milk prices. But China may also be a factor since they are now consuming 30% of entire world's milk production. As the heavily populated countries of China & India get richer, expect food prices and energy prices to inflate. Demand is growing faster than supply. I used the 3 commodities as an example to illustrate how the ascent in stock prices is NOT keeping up with many everyday items. Everything is going to inflate in proportion to the devaluation of the dollar.