Tsunami of Inflation to Hit U.S. with Japan Crisis

From: National Inflation Association

The earthquake, tsunami, and nuclear disaster that hit Japan this past week and the destruction that it caused is nothing compared to the tsunami of inflation that will soon hit the U.S. as a result of this crisis. A tsunami of inflation in the U.S. will mean a complete collapse of our monetary system, which could lead to millions of deaths due to a lack of food and heat. 44 million Americans are now dependent on food stamps, but when the U.S. dollar becomes worthless as a result of hyperinflation, the government will no longer have the power to support these Americans and many of them will simply starve to death.

Japan’s citizens were smart enough to save up $885.9 billion in U.S. treasuries to spend in a situation like it finds itself in today. The U.S. has no such savings and is the world’s largest debtor nation. Our ability to survive depends on our ability to print money that has purchasing power. The only reason the U.S. dollar still has purchasing power is the dollar’s status as the world’s reserve currency.

All Japan has to do is sell their U.S. treasuries and they will have the financial resources necessary to rebuild the parts of their country that were destroyed by this past week’s disaster. However, U.S. Treasury Secretary Timothy Geithner said on Tuesday that he doesn’t think Japan will unload their $885.9 billion in U.S. treasuries. It remains to be seen if Japan will do the right thing and sell their U.S. treasuries or if they will make the mistake of continuing to artificially prop up the U.S. economy.

The Central Bank of Japan (BOJ) in recent days has already been repeating many of the same mistakes the Federal Reserve made in the U.S. After this past week’s disaster, the BOJ printed hundreds of billions of dollars worth of yen in an attempt to prop up their financial markets. Japan’s central bank should be raising interest rates, which would encourage its citizens to increase their savings so that they have more resources to rebuild their country and invest into the production of clean energy. By printing trillions of yen out of thin air, the BOJ will cause prices to rise for the very building materials the Japanese need to purchase in order to rebuild.

Although the yen has been rising in recent days, it would be strengthening a lot more if it wasn’t for the BOJ’s actions. In fact, NIA believes that while the yen may continue to rise in the short-term, the yen is now likely to lose a substantial amount of its purchasing power over the long-term. Instead of allowing the yen to strengthen so that it is cheaper for the Japanese in import copper, iron, steel, oil, natural gas, and other commodities needed to rebuild, the BOJ’s actions are actually hurting the Japanese and having the effect of propping up the U.S. economy in the short-term.

The mainstream media frequently talks about Japan’s national debt and how it is 225% of their GDP. However, Japan owes most of their national debt to themselves. We have a much worse national debt crisis here in the U.S., where we owe half of our debt to foreigners. Not only that, but once you include America’s unfunded liabilities for Social Security, Medicare, and Medicaid, along with its debts for Fannie Mae and Freddie Mac (which are now government backed entities), total U.S. debt obligations now exceed $76 trillion.

The Japanese economy reached peak consumer spending in 1990 and entered their “Lost Decade” of deflation with a balanced budget, high savings rate of 15%, low unemployment rate of 2%, and a net debt to GDP ratio of less than 20%. The average American peaks in spending at age 46 and the last babyboomer just turned 46 in 2010. This means the U.S. economy just passed peak consumer spending, similar to Japan in 1990. Instead of entering this decade from a position of strength, the U.S. has entered it with a real budget deficit of $4.3 trillion, a savings rate of only 4%, a real unemployment rate of 22%, and total debt obligations that are 5 times higher than GDP. We won’t be so lucky to escape this decade with deflation, but will instead be faced with hyperinflation as the world loses confidence in the U.S. dollar and rushes to dump their dollar-denominated assets.

When Japan comes to their senses and realizes just how dire the fiscal situation is in the U.S., they will realize that they are much better off investing into their own economy and abandoning the U.S. economy. Just the fact that Geithner is now saying that he doesn’t expect Japan to dump their U.S. treasuries, illustrates just how nervous the U.S. government is about the U.S. dollar and how devastating it would be for all Americans if the Japanese did dump their treasuries. No amount of tax increases and spending decreases will ever allow the U.S. to balance its budget. All the U.S. government can do is talk up a strong U.S. dollar, because they have absolutely no real way to keep it propped up.

All NIA members know that Geithner is perhaps the biggest liar in the U.S. government today. Geithner has long said that the U.S. will not monetize its debt, yet the Federal Reserve is now the buyer of 70% of U.S. treasuries being sold. Foreign central bank purchases of U.S. treasuries have fallen from 50% down to 30%. The days of the U.S. exporting its inflation to the rest of the world are now over.

The U.S. just reported a record budget deficit last month of $222.5 billion, a bigger deficit than the entire year of 2007. Up until today, the U.S. has been paying off its debts plus interest by selling larger amounts of U.S. treasuries to new buyers. This is effectively a ponzi scheme, although the U.S. government will never admit it. Even if Japan doesn’t sell the U.S. treasuries they already own, that won’t be enough for the U.S. to keep this ponzi scheme going. The U.S. needs Japan to keep buying U.S. treasuries, but not only that, they need Japan to buy larger amounts of U.S. treasuries than ever before. The odds of Japan increasing their U.S. treasury purchases during this time of crisis are close to zero, they simply don’t have the financial means to do so.

If Japan doesn’t step up its U.S. treasury purchases, who will pick up the slack, China? Geithner infuriated China last year by calling them currency manipulators and since then, China has been rapidly expanding the yuan’s use in cross border transactions and is now setting up the yuan to be the world’s next reserve currency. NIA believes China is likely to stop buying U.S. treasuries, and will instead loan money to Japan to help in their rebuilding efforts.

It is unbelievable just how many of the economists featured by the mainstream media are calling the disaster in Japan a “stimulus” for not only the Japanese economy, but also the U.S. economy. When a country is forced to rebuild an asset that it already had, it is not stimulating the economy, but is spending resources that could have went towards increasing the production of goods and services. When Japan is eventually finished rebuilding the parts of the country that were devastated this past week, the country isn’t going to be better off than they were before the crisis. They will likely be even more deeply in debt, with less foreign currency reserves, and a much larger money supply. The Nikkei will likely be a lot higher than it is today due to inflation, but the yen will be worth a lot less and the Japanese will be far less wealthy as a result.

America has nothing to benefit from Japan’s rebuilding efforts. Most of the commodities that Japan will import as part of their rebuilding efforts will likely come from Australia, China, and even Canada, with very little of it coming from the U.S. All of the fear and uncertainty in the world today is not going to cause another rush into the U.S. dollar like there was in 2008. When the world dumps risky assets in uncertain situations, the U.S. dollar is going to become one of the risky assets that it dumps. With all of the world’s central banks now fixated on printing money in order to “solve” any short-term economic problems, gold and silver will be the new beneficiaries of all safe haven buying during times of crisis. Don’t let yesterday’s dip in gold and silver fool you. Precious metals were due for a dip and would have sold off no matter what. Now is the time to load up with precious metals before the Federal Reserve begins dropping hints of QE3.

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.


Watcher’s Council Nominations – Shaken And Stirred Edition – 03/16/11

From: The Watcher’s Council

Welcome to the Watcher’s Council, a blogging group consisting of some of the most incisive blogs in the ‘sphere, and the longest running group of its kind in existence. Every week, the members nominate two posts each, one written by themselves and one written by someone from outside the group for consideration by the whole Council. Then we vote on the best two posts, with the results appearing on Friday.

This week’s edition is dedicated to the bravery and the spirit of the people of Japan.

Council News:

This week, Divided We Stand United We Fall, The Grouch, Capitalist Preservation and Theo Spark all took advantage of my generous offer of link whorage and earned honorable mention status.

You can, too. Want to see your work appear on the Watcher’s Council homepage in our weekly contest listing? Didn’t get nominated by a Council member? No worries.

Simply e-mail me a link at [email protected] with the subject heading ‘Honorable Mention’ no later than Monday 6 PM PST to be considered for our honorable mention category and return the favor by creating a post on your site linking to the Watcher’s Council contest for the week.

It’s a great way of exposing your best work to Watcher’s Council readers and Council members, while grabbing the increased traffic and notoriety. And how good is that, eh?

So, let’s see what we have this week….

Council Submissions

Honorable Mentions

Non-Council Submissions




By: AJ

There’s no excuse for your current failures. 62% of the American people oppose Obamacare. You assured all of us that you would defund it. $105 billion was embedded and appropriated within the bill. You refuse to put a stop to the spending of this $105 billion.


Americans of all political persuasions are screaming “STOP SPENDING!” and yet you refuse to make meaningful and significant cuts to President Obama’s reckless and destructive plans. It was wrong when President Bush did it and it’s wrong now. We can’t change what Bush did in the past, but we can change what Obama is doing. That’s what we sent all of you to Washington to do

Tell the American people the truth. The Government will be shut down by the Democrats if they (Harry Reid and his useful idiots) do not pass legislation which defunds Obamacare and makes significant and meaningful budget cuts. Then create the legislation and get it passed in the House.

Tell the American people the truth… if Democrats cause the Government to shut down, essential operations will continue. Social security and welfare checks will still flow, etc.

This isn’t a game and we’re not going to take it anymore. We’ve shown incredible respect and patience, but our patience has run out and it’s time for you to get serious. Your political deal-making and coercion must stop. You are failing to do the job We The People sent you to do.


The GAO report showed $100 to $200 billion in redundant government organizations. End that waste immediately!

It’s not about determining which agencies should be cut, it’s about eliminating all redundant agencies as well as those that are outside the scope of what the Federal Government is constitutionally mandated to do. The only question to be answered is which agencies are to be kept; all the rest are unconstitutional and must be eliminated.

If you’re unable to understand this and move forward on it, then you are unfit to serve.


We’ve given you $305 billion that you can cut from President Obama’s reckless spending right now – today… plus more through elimination of the unconstitutional government agencies currently in operation.

While many keep saying we need to cut Social Security and Medicare/Medicaid, the people are saying, “Cut the wasteful and unlawful government spending first!”

We took time away from our families to ensure that Democrats didn’t win a majority in the House and within states. Why? Because we saw the kind of radical un-American “Change” they offered, we don’t want it and Republicans campaigned on – and we elected you to – halt what they’ve done, STOP SPENDING and STOP OBAMACARE. Your amateurish cow-towing to the Democrats is despicable. You’re allowing them to control the narrative and continue as though the 2010 election never happened.

Republicans will pay dearly in the 2012 primaries if you do not change course immediately.

Either you are incompetent or your perception is severely skewed. Either way, you are unfit to serve the people of this great nation if you continue down your current path. There is no compromise when it comes to doing what’s right for America. There is only ‘Doing what’s right for America.’ Step aside if you’re unwilling or unable to do this. Based on what you’ve demonstrated thus far, it’s time for you to GET OUT! Otherwise, you had better WAKE UP! We’re mad as hell and we’re not going to take it anymore!!

Individuals, families and businesses know that spending more than you take in will increase debt. And the only way to pay down debt is to spend less than you take in. Only the idiots in our government believe you can ‘redefine’ mathematics and somehow get away with your corrupt behavior. We’re here to tell you, “Not anymore!”

Here are more cuts which total $1.65 Trillion. If we, the people, can find a total of $1.955 Trillion to cut, so can you. If you won’t, then it’s time for you to WAKE UP right now, do your job OR GET OUT!


There is no rational explanation for spending taxpayer dollars to send American jobs overseas, to support Communist and Socialist anti-American regimes, to fund abortions and healthcare overseas, etc. Eliminate all of it now. We can’t afford it and it’s outside the scope of the limited powers of the Federal Government.


Department of Homeland Security (DHS) has a FY2011 budget of $43.6 billion.


Government employees, organizations and programs are paid with taxpayer dollars. The more politicians grow government, the more they must take from American citizens and businesses.


These are just a few of President Obama’s NLC spending priorities for FY2011.

$23.58 billion as follows from the “President’s 2011 Budget includes NLC priorities”:

  • $10.00 billion – EPA; they’ve failed for decades to do the 1 task assigned… US Energy Independence.
  • $1.18 billion – Workforce Development (i.e. special interest slush fund).
  • $3.50 billion – Education increase in discretionary funding (i.e. slush fund).
  • $4.00 billion – Community Development Block Grant (i.e. slush fund).
  • $4.90 billion – HUD budget increase for 2011 (i.e. growth of an incompetent government organization).



A few additional spending items planned for FY2011 while our healthcare premiums rise, SEIU halts coverage for over 30,000 children of low-income families, AARP says Obamacare is too expense for them and more than 1,000 Unions and companies that supported Obamacare have now been given waivers because they say they can’t afford it.


Between MIT’s research which proves the global-alarmists’ “science” is false, the ClimateGate scandal revealing the lies and the recent admission by the UN that it’s all about wealth redistribution, this spending has to go!


Although our government continues to increase spending, the quality of education for our children continues to decline. ENOUGH!


Stop Spending Our Future – The Crisis