Thursday, July 03, 2008

My Blog has been Unlocked!

I pleaded my case on a blogger helpline last night and apparently my issue made it to someone who could do something about it -- the help arrived this AM. Thank God... I was beginning to think my blog would be completely deleted and hundreds of posts lost forever.

Anyway, I wasn't expecting this good news today, so wasn't prepared with anything to say.

With that, how about that ECB rate hike today, followed by a strong dollar rally, equities rally and a gold take-down. Hmmm? Certainly seems like a planned event.

Much going on in the world:

- DOW in a bear market (worst June since the Great Depression)

- GM potential bankruptcy (I warned back in 2006: Here & Here)

- Iran in the Crosshairs (Coming Catastrophe

- New Oil Records

- US Dollar on the Edge

- Banking System Meltdown looming

Bottom line: For the enlightened few who have been following along, this bad news was totally expected and most of you understand that these issues of late are merely the opening salvo --with much worse to follow. For the remainder of the sheeple, they still don't get it and (unless they open their eyes and pay attention) probably never will.

Best regards and I'm delighted to be back!



Anonymous said...

Welcome back!!! I look forward to your take on the past week or so in financial matters.


Justin_n_IL said...

I'm delighted to have you back Randy!!! I'm waiting for a Maybe you could work on the "it's inflation stupid" reality that has seized the America and is spreading to all those other nations whose currencies are pegged to the $. I've been beating my head against a brick wall with some and thankfully a few actually get it. Inflation, inflation, inflation. More money printed more inflation. It's so simple and plain to understand, yet...well you know what I mean.

Welcome back!!!

Anonymous said...

Whew - wondered where you went - now get back to work!(G)

Gary Near Death Valley said...

Now I can quit my nail biting and consecrate back on harvesting the elephant garlic and taking care of the tomatoes. Welcome back,,,,,from over the hump in Pahrump Land.

Anonymous said...

Whew, I'm so glad you are back! I thought you were going to be censored forever because you told too much of the truth. I'm so glad you are back!

Anonymous said...
P.S. Wanted to see what you thought of this, do you agree with Mish that we will see a salary deflation (even in the face of rising costs of living) or do you think we will see something more like the wage-price spirals of the 1970's? I think if we see decreasing wages coupled with increasing costs for necessities, we are really going to be hurting. Men work, women work, a whole lot of people work two or three jobs even. A whole lot of people are already trying to cut out all the luxuries. I mean, if wages go down but the cost of food and energy go up - what on earth are these people going to do? Get a fourth job? Decide to stop the frivolous and wasteful habit of eating?

Anonymous said...

woohoo! Welcome Back!

Randy said...


Busy weekend planned, but will try to put something together.

Thanks Justin,

Yup Inflation is the word everyone is discussing these days, but most don't understand the cause.


I'm trying to figure out who you are, but thanks for posting up...

Thanks Gary,

Don't know how anything can grow in this heat... was 112 degrees today in vegas.

BTW: I heard about the brothels out your way -- slow business these days -- now passing out $100 gift cards to customers. Interesting times indeed.


Thanks for your concern and it's good to hear from you.


Same goes for you -- appreciate your support

Anon 3:48,

Mish is quite bright, makes sense w/regard to many issues (I read his posts quite frequently), but we have slightly different viewpoints. Mish is a die-hard deflationist, whereas as I believe we will experience (are experiencing) simultaneous deflation and inflation (fed creating new inflation to battle deflation) -- ultimately, I think hyperinflation will eventually lead us into a full-blown deflation/Depression (2011-12ish), but the inflation WILL come first...

Anyway, with regard to your question:

"will we see a salary deflation (even in the face of rising costs of living) or do you think we will see something more like the wage-price spirals of the 1970's?"

We've been seeing wage delation for years here in the US due to NAFTA/CAFTA/industry outsourcing, etc.

A recent example (due to high costs, lack of competitiveness and bankruptcy) is DELPHI, eventually cutting union wages from ~$27 hr to $16 hr.

US auto union accepts massive wage cuts and layoffs in tentative pact with Delphi

So in short, Yes -- I believe Mish is correct and we will continue to see wage deflation during these times of rising inflation.

You then ask: "if wages go down but the cost of food and energy go up - what on earth are these people going to do? Get a fourth job? Decide to stop the frivolous and wasteful habit of eating?"

As I've stated in Final End Game:

With inflation and unemployment raging, tens of millions of Americans will not be able to make ends meet and lifestyle cutbacks will become the norm.

Americans feeling the pinch will have to eventually downsize (much smaller house or apartment -- to reduce utilities/costs; take on a room mate, purchase a more fuel efficient car; drive MUCH less -- car-pooling will become very popular, eating out will stop--it will only be for the well-off; families will eat cheaper foods at home, clothing will be used until completely worn out, churches and aid agencies will become much more involved in the struggling/average American's life, etc...

As stated in American Wake up Call
I personally believe it will be a long, very difficult ride ahead, but in the end, it will probably make us a better, stronger nation. We, as a people, have become way too self-centered and soft, trivial issues have become important, important issues are ignored, people are completely ignorant to the world, values are gone, family means little, government is completely out of touch and ineffective, everyone wants something for nothing, etc. This wake-up call will probably do us some good.

Regards to all


Matt said...


The above paragraph says it all. Up until the last 50-75 years or so (just a shot) people were well aware of what was going on. They were knowledgeable about their finances. Now most of use are concerned with garbage television and false news media. Wall St and 5th Ave have been hypnotizing us for some time now. It's good to see some of us waking up, but the majority will need what you have just listed to wake them up.

Welcome back!