Hat Tip: Jean Stoner
Hat Tip: Brian B.
President Obama’s comments on Wednesday in a joint press conference with Chinese President Hu Jintao, misinformed the public about potential changes in foreign exchange rates and their effects on U.S. citizens. Obama on Wednesday said that he would like to see the Chinese yuan appreciate faster in value. While Hu indicated that China is committed to allowing the free market to better dictate the value of the yuan, Obama said China is implementing their steps to allow the yuan to appreciate “not as fast as we’d like.”
For years, the U.S. has been criticizing China by calling them “currency manipulators.” The fact is, the Federal Reserve is the real currency manipulator because their actions will soon lead to a U.S. Hyperinflationary Great Depression that destroys the lives of all Americans who aren’t prepared for life with a worthless U.S. dollar. All China is doing is pegging the yuan to the U.S. dollar so that their product manufacturers and exporters can maintain some level of stability. However, the U.S. is using this as an excuse to explain its rapidly deteriorating export market.
Obama was correct when he explained to the world how China would benefit by having a stronger yuan. Obama understands perfectly how a stronger yuan would bring down prices for Chinese citizens and allow them to enjoy a much higher standard of living. In fact, NIA believes China could solve their current inflation crisis simply by allowing the yuan to appreciate alone.
China has seen the prices of many food items soar by 25% or more in recent months, which is horrific for a country where many of its citizens spend half of their income on food. While most mainstream economists on CNBC, Bloomberg and FOX Business are quick to blame China’s food inflation crisis on the weather, NIA believes the weather has very little to do with it. It seems like the weather is always the excuse every time food prices rise. Mainstream economists would have you believe that the world has been experiencing never-ending droughts and floods that continue to worsen each year.
NIA members know better than that. After all, we have the most educated membership base in the world. The truth is, China’s food inflation crisis is coming as a direct result of the Federal Reserve’s destructive quantitative easing and money printing policies, and China’s willingness to keep the U.S. dollar artificially propped up out of fear that Americans will no longer be able to afford their exports. China is importing all of its food inflation from the U.S. and if President Obama gets his way, China will throw its food inflation right back into the faces of all U.S. citizens.
Imagine a food fight in school between American and Chinese kids with the American kids throwing their free National School Lunch Program (NSLP) meals (paid for by Chinese purchases of U.S. treasuries) at the Chinese kids while the Chinese kids sit there ignoring it trying to enjoy their own meals that they spent half of their income to buy. All the while, the American kids are antagonizing the Chinese kids, calling them currency manipulators and blaming their need for free NSLP lunches on China’s currency peg (when the peg is actually preventing the American kids from starving). Sooner or later, not only will the Chinese kids throw the NSLP lunch remains back at the Americans, but they might become so disgusted (because they paid for the food being thrown at them) that they actually regurgitate their meals that they worked half of the day to be able to consume, into the American kids’ faces.
If the Federal Reserve continues down the path it is currently on, not only will China allow the yuan to rise to a free market determined level, which will send China’s food inflation crisis back to the U.S., but China is likely to dump their U.S. treasury holdings that they are currently hoarding. China’s foreign exchange reserves rose by $199 billion last quarter (its largest quarterly gain in 15 years and 78% higher than analyst estimates of $112 billion) to a record $2.85 trillion for total growth in 2010 of 18.7%. Most likely, about 2/3 of these reserves are in U.S. dollars. Americans have been deceived by the U.S. government and the mainstream media into believing the U.S. economy is recovering, because the U.S. has been enjoying the benefits of inflation without the consequences of rising prices. When the U.S. bond bubble begins to burst and these trillions of dollars being hoarded come home to roost, inflation will become the primary concern of all Americans.
NIA finds it completely outrageous how Obama can be so honest with Chinese citizens about their benefits of having a stronger yuan, but then seconds later outright lies to the American public by saying that Americans would gain by having a stronger yuan as well. A stronger yuan by definition would mean a weaker U.S. dollar. It is insane for Obama to proclaim that having a stronger currency is good for China, but bad for America. The rules of economics are the same in both countries.
As the Chinese see their purchasing power increase by having a stronger yuan, Americans will see their purchasing power decrease by having a weaker dollar. These simple economic principles are easy for any human being to understand, but nobody in the mainstream media is calling Obama out on it. The media completely accepts Obama’s statements as the truth, without providing any warning to American citizens that Obama’s desired change in foreign exchange rates will shift China’s inflation crisis completely to the U.S.
On November 12th, NIA’s President Gerard Adams warned Americans on FOX Business to beware of massive food inflation in early 2011. We are less than three weeks into the new year and massive food inflation is already here. SuperValu, the third-largest U.S. food retailer with 2,349 stores that operate under such names as Acme, Albertsons and Save-A-Lot, just reported that all of their major vendors have announced their intentions to pass along rising costs throughout the calendar year and the company will be raising prices on all food items by 3% to 14%. NIA’s experience tells us that SuperValu is planning to increase prices on most goods by approximately 14%. Trust us, if SuperValu was expecting to increase prices by an average of only around 5%, they would have given an average instead of such a wide range. (By the way, SuperValu’s stock crashed 16% on the news and one of NIA’s top 10 predictions for 2011 was that U.S. retail stocks will decline after reporting lower profit margins.)
The SuperValu situation confirms that double-digit U.S. food price inflation is just about guaranteed to occur in 2011. We also expect to see double-digit price inflation this year in clothing, oil, gasoline, natural gas, and all of the most important things Americans need to live and survive. If the U.S. Bureau of Labor Statistics (BLS) somehow manages to report a CPI increase in 2011 of anything less than 5%, and the mainstream media continues to report the BLS’s CPI numbers as the truth, any Americans who continue to listen to the mainstream media deserve to lose all of their purchasing power during hyperinflation.
It is important to spread the word about NIA to as many people as possible, as quickly as possible, if you want America to survive hyperinflation. Please tell everybody you know to become members of NIA for free immediately at: http://inflation.us
By: T F Stern
T F Stern’s Rantings
Remember how we were all going to die from H1N1, Pig Flu, Chinese Bird Flu or some other mass pandemic? Did it happen? The news media had a field day scaring folks into getting face masks, flu shots or even pulling children from school to avoid contact with others who might already be carriers.
This past week there’s a similar scare tactic on our local NBC station, KPRC; only this time we’re being warned about high tech auto thieves lurking behind every blade of grass, bush and tree. This new brand of auto thief doesn’t need to break the window or lock; he only needs a cheap electronic device which hacks into your remote to steal the code which opens and starts the car.
Everything in the story was true; devices are out there which are capable of stealing the electronic codes when you lock or unlock your car, some thieves have been found to be in possession of these devices and there is a chance your fancy car could be stolen in this manner. Common sense dictates a modicum of caution. However, before getting too concerned, this information came from Switzerland and there is little indication the devices are in widespread use here.
“KPRC Local 2 checked with Houston police, who said they have not heard of any cases like this. They said keyless entry has helped car thefts decrease.”
Imagine that, the police have not heard of ANY cases like this. I would, however, amend their assumption that keyless entry has helped to decrease car thefts. Most newer vehicles are equipped with an anti-theft device called a transponder system.
A little transmitter about the size of a large grain of rice is embedded in the head of the ignition key. When you turn the key towards the start position, energy from the vehicle’s battery activates the device which sends a long strand of code to the vehicle’s computer. Unless the information stored in the computer matches, the car won’t start. Transponder key systems are mostly responsible for the decrease in car thefts.
Unfortunately, auto thieves have figured this out. Instead of stealing your car after you’ve gone inside the house or shopping mall, these guys know they can’t just smash the ignition switch with a hammer and screw driver like they could years ago. Now auto thieves have to stick a gun to your head to obtain the fancy transponder key in order to get your car. The crime is called Armed Robbery, with or without serious bodily injury.
I wrote an article back in July which included auto theft statistics. The police department failed to include the most important information. Were the vehicles stolen equipped with transponder technology or were these older vehicles? I tried to obtain the information but could find nobody capable of extracting this important statistic from their over burdened computer database.
The price of gas goes up a few cents each week and is hovering at three dollars a gallon. It’s expected to reach much higher. Maybe that should be phrased differently. Certain government officials, under pressure from environmentalists, would prefer the price of gasoline to reach five dollars per gallon in order to save the planet. Never mind the economy falling off the charts, our jobless rate equals or surpasses that of the Great Depression, China’s about to call in our markers because the dollar isn’t worth gambling on… No, we need to get worked up because auto thieves in Switzerland have figured out a new way to steal cars equipped with a push button starter.
This article has been cross-posted to The Moral Liberal, a publication whose banner reads, “Defending The Judeo-Christian Ethic, Limited Government & The American Constitution.”
Dick Adams wrote an email to the Spokane, WA, City Council and Mayor Mary Verner last week that, when you put two and two together, has the effect of indicting the mayor for anarchy. Actually, the evidence suggests to me that the mayor effectively confessed to anarchy three years ago with a surprisingly candid email she wrote to a former sheriff. Mr. Adams’s email shows what Mayor Verner’s anarchy is costing her citizens.
Mr. Adams objected to consideration that Spokane chief financial officer Gavin Cooley is giving to “charging our city credit card” by selling $45 million of councilmanic bonds. Mr. Adams told me that he considers this an illegal use of public debt because its purpose is to solve a financial crisis caused by an earlier illegal use of public debt. Mr. Cooley is an agent of both frauds, charges Mr. Adams, which stem from the River Park Square financial scandal.
Dick Adams is hardly alone in decrying such abuse of public finance as part of a much larger pattern of government behavior in America today. A retired executive of a U.S. Steel subsidiary, Mr. Adams is well known for his financial expertise. Over the years he has been one of the closest and most knowledgeable observers of municipal finance in Spokane. Not just Teapartiers agree with him that America’s fiscal lawlessness has become nothing less than a government Ponzi scheme now threatening the country with an historic economic catastrophe.
The damage has already begun (Hat Tip: Brian B.)
Gas Prices Up for Nearly All; 70% Expect $4-A-Gallon Gas by July (Hat Tip: Brian B.)
Now the PTB want to eliminate the Presidential primary in my State (Hat Tip: Brian B.)
Freddie Mac Downplays Citi’s Mortgage Problem (Hat Tip: Jean Stoner)
Oil to exceed $150 a barrel, ‘probably go over’ $200 warns investor (Hat Tip: Brian B.)
Obama Signs New Executive Order; Congress Officially Irrelevant (Hat Tip: Brian B.)
Trading Away Secrets (Hat Tip: Brian B.)
Republican lawmaker compares China to Nazi regime (Hat Tip: Brian B.)
Gordon Brown presented £10,000 worth of gifts to Barack Obama (in exchange for DVDs) (Hat Tip: Jean Stoner)
Daily Presidential Tracking Poll (1/19/11: B.O. Snuggles Up w/Communist China, at -9) (Hat Tip: Jean Stoner)
Rep. Weiner: “I Believe The Republicans Haven’t Read The Bill” (Hat Tip: Brian B.)
Exclusive: Over a million immigrants land U.S. jobs in 2008-10 (Hat Tip: Brian B.)
Obama’s Backdoor Land Grab Sends Shockwaves Across the West (Hat Tip: Nancy Jacques)
Federal Workers go Hog Wild with Porn, Steaks and Season Tickets on your Dime! (Hat Tip: Nancy Jacques)
Ballmer, Blankfein Invited by Obama to Hu Discussion on Business in China (Hat Tip: Brian B.)
12 Economic Collapse Scenarios That We Could Potentially See In 2011 (Hat Tip: Brian B.)
China’s violent cycle could be highly destabilising for the world.” (Hat Tip: Jean Stoner)
Warren Buffett Funds Obama’s International Fuel Bank? (Hat Tip: Jean Stoner)
Is Silver Bottoming? (Hat Tip: Brian B.)
You Don’t Know One-Fifth of It: The Latest Behind the Bailouts (Hat Tip: Jean Stoner)
Venezuela Becomes New Stalinist Nation (Hat Tip: Jean Stoner)
By: Trevor Loudon
This is so good,,,
By: Trevor Loudon
UK Independence Party Euro MP Nigel Farage rightly compares the European Union to its spiritual ancestor the former Soviet Union.