I've been warning you about the North American Union (NAU) for quite some time now: AMERO and the North American Union.
My thoughts on the NAU: Mexico has Cheap labor and Canada has Abundant Natural Resources
Once again, just like NAFTA, the NAU will lower America's Standard of living through job outsourcing.
I hope we can all agree that corporate bottom lines were the main reason for outsourcing our US manufacturing base... So today we receive cheap imported goods at our borders, and these goods get handled by Union dockworkers and then get put on American Trucks (high labor costs cutting into corporate profits). Suppose now we now take all these cheap imports from Asia and offload them in Mexico (Mexican labor with Mexican wages and few benefits), put them on Mexican trucks and ship products to final destination (anywhere in US or Canada) via the NAFTA Superhighway.
Ultimately, this move increases bottom-line profits for BIG BUSINESS, and we all know big business controls our elected representatives through huge campaign contributions, high power lobbyists and special perks...
End result: That Giant Sucking sound (loss of American Jobs) will merely get louder and our standard of living continues to fall -- until it becomes cheap enough to employ American workers once again.
Anyway, the reason for this post is: a friend of mine over at ECONOMY IN CRISIS just posted up a new article illustrating that, though officially denied, the plan is still intact, yet few seem to take an interest -- while those who do get marginalized. What's it going to take folks?
NAFTA Superhighway and North American Union: a Scary Reality
The NAFTA Superhighway is not a myth, but instead represents a road leading to a troubled future. In an attempt to facilitate and create a North American trade bloc, quickly transporting cheap imported goods from China to America’s many Wal-Marts – our leaders are creating a North American Union and a massive highway – four football fields wide – running from Mexico to Canada. The highway promises to import a surplus of goods, destroy any country-side in its path and ease a process of outsourcing American jobs south-of-the-border to cheaper rates of pay and lower environmental standards.
While most other major national newscasters have blindly accepted the government’s line that the “NAFTA Superhighway” is a “myth,” Lou Dobbs has refused to be fooled. In search of the truth, Mr. Dobbs sent investigative reporter Bill Tucker to Texas to see for himself.
The evidence Mr. Tucker uncovered was powerful, compelling, and shocking. It confirms everything we here at the NAU War Room have been saying about the government’s hidden drive to absorb America into a “North American Union” (NAU) with Canada and Mexico, anchored by a massive “NAFTA Superhighway” designed to speed cheap Red Chinese and foreign goods from Mexico into the U.S. and Canada.
NAFTA Superhighway and North American Union: a Scary Reality
Showing posts with label Amero. Show all posts
Showing posts with label Amero. Show all posts
Tuesday, June 10, 2008
Thursday, April 24, 2008
Thursday's Economic News Roundup
The Major US indices closed in the green today on good news from Ford and an unexpected drop in US Jobless claims:
Wall Street rallied Thursday after the government's jobless claims data and Ford Motor Co.'s first-quarter results helped reinject some optimism about the economy into the market.
The Dow Jones industrial rose more than 80 points as investors focused on the Labor Department data showing weekly unemployment claims dropped and word that Ford had a $100 million profit in the first quarter.
Investors were also able to set aside any concerns about another drop in factory orders for big-ticket manufactured goods and weak forecasts from Amazon.com Inc. and Starbucks Corp.
OK, I'll give the indices credit for this, but what of other news today?
New home sales plunge to lowest level in 16 1/2 years, prices drop by largest amount in 38 years
Sales of new homes plunged in March to the slowest pace in 16 1/2 years as a two-year housing downturn extended into the start of another spring sales season. The median price of a new home in March compared to a year ago fell at the fastest clip in 38 years.
Sales of new homes dropped by 8.5 percent last month to a seasonally adjusted annual rate of 526,000 units, the slowest sales pace since October 1991, the Commerce Department reported Thursday.
The median price of a home sold in March dropped by 13.3 percent compared with March 2007, the biggest year-over-year price decline since a 14.6 percent plunge in July 1970.
As financial markets grow increasingly worried about inflation pressures, Freddie Mac reports that fixed-rate mortgages move higher--Rates on 30-year mortgages now top 6%
"Average rates on mortgages increased across the board this last week as the most recent economic data raised inflationary concerns in the capital markets," said Frank Nothaft, Freddie Mac's chief economist.
Fueling those concerns was a bigger-than-expected 1.1% jump in wholesale prices and a renewed surge in energy costs, which have pushed gasoline and crude oil prices to record levels.
US Airways, following Delta & Northwest, Reports Loss
US Airways Group Inc. said Thursday it swung to a loss in the first quarter, punished like other airlines by the rising cost of jet fuel.
US Airways said it lost $236 million, or $2.56 a share, in the January-March period, compared with a profit of $66 million, or 70 cents a share, a year earlier. Excluding special items, the net loss was $239 million, or $2.60 a share.
US Airways' earnings report came a day after Northwest Airlines Corp. and Delta Air Lines Inc. reported combined losses of more than $10 billion. Most of those losses came on write-downs to reflect a decline in market value.
Motorola 1st-qtr loss widens as mobile-device sales plunge and it forecasts 2nd-qtr loss
Struggling cell phone maker Motorola Inc. disappointed investors Thursday when it posted a wider first-quarter loss and failed to meet revenue forecasts.
The suburban Chicago company, which is in the midst of a massive reorganization that includes splitting itself into two publicly traded companies, said it lost $194 million, or 9 cents per share, for the quarter that ended March 31.
Sales fell about 21 percent to $7.45 billion, down from $9.43 billion a year ago.
Microsoft reports 11 pct profit drop
Microsoft Corp.'s third-quarter profit fell 11 percent, the software maker reported Thursday as executives renewed their warning that they may go hostile or walk away from their $44 billion-plus offer for Yahoo Inc. if Yahoo doesn't agree to a deal by Saturday
Sales of Windows software were not as strong as Microsoft or analysts had predicted in the quarter, despite Microsoft's comments that sales of Vista licenses -- now at 140 million, up from the 100 million mark reached in January -- are on track.
Revenue in that division fell 24 percent to $4.02 billion.
American Express profit falls 6%; New York-based credit-card company slips as U.S. cardholders struggle to make their payments.
American Express Co.'s first-quarter profit slipped 6% as the credit-card lender saw more U.S. cardholders fail to make their payments, it said Thursday.
Like other lenders, the New York-based company has been writing off more loans as unpaid as U.S. borrowers struggle with slumping home prices, rising costs, and a less certain job market.
The company's total provisions for credit losses amounted to $1.27 billion, a 48% increase from the first quarter of 2007.
U.S. card services profit fell 19% to $523 million in the first quarter compared with the same period a year earlier, as profit from international card services rose 30% to $133 million.
The writeoff rate in U.S. card services, including both on-balance sheet cardmember loans and off-balance sheet securitized cardmember loans, increased to 5.3% from 3.7% a year ago - faster than the company anticipated.
United hikes fares 3% to 5%, blaming fuel costs; The second-largest U.S. carrier increases almost all of its domestic airfares for the third time in two weeks.
United Airlines, the second-largest U.S. carrier, raised nearly all its domestic airfares by 3% to 5% Thursday as it struggles to cope with soaring fuel costs.
The widespread increase is the third in a row initiated by United in just over two weeks, and will likely entice other carriers to follow suit. The Chicago-based carrier's last two attempts were quickly matched by competitors and remain in place in many markets.
The move comes just two days after Delta Air Lines Inc. Chief Executive Richard Anderson said domestic carriers need to raise tickets 15% to 20% just to break even at existing fuel prices.
"This is the most challenging financial period in the history of the industry," said John Heimlich, chief economist of the Air Transport Association. "Just at the same time we have this unprecedented surge in jet fuel prices with no end in sight, we're bumping up against a weakening economy."
My Thoughts:
Maybe I'm biased, but based on the news reports above, it certainly doesn't look like our economy is getting any better... Could the PPT and pundits possibly be trying to lull the cattle into a false sense of security while leading them to the slaughterhouse? Oh well, until the sheeple (cattle) pull their heads out of the sand there is really nothing I can do about it...
OK, last but certainly not least, here is a very good opinion article that I thought you would enjoy:
The U.S. Dollar has Been the Gold Bug’s Best Friend – Until the “Amero” Debuts
As all gold bugs know, gold’s historic rise since 2001 has largely been attributed to the dilution of the U.S. dollar. Trade deficits, government overspending and the more recent sub-prime mortgage debacle have all helped deflate the greenback while driving up the price of gold.
However, what would happen if the U.S. dollar just disappeared? How would gold and other hard assets be valued then?
This week the three NAFTA amigos, President George Bush, Prime Minister of Canada Stephan Harper and Mexican President Felip Calderon met to ram new polices down our throats which will impact gold and other commodity prices going forward.
The reopening of the North American Free Trade Agreement is the first strategic move toward a North American Union that will create a new currency to compete with the Euro.
On Tuesday, the U.S. dollar sank yet again with the Euro breaching the psychologically significant $1.60 mark for the first time.
It’s only a matter of time before the U.S. dollar collapses to the point of no return internationally. With the Fed unable to manage the slide with higher interest rates due to the economic slowdown in the U.S., the three amigos are setting up the chess pieces for the inevitable next move: the creation of a North American currency, the “Amero.”
The Hallmark of Bush’s presidency could very well be the creation of the Amero, the perfect solution and savior to the failing U.S. dollar. Whether it’s Bush or the next president, at some point in the not too distant future the dollar will be abandoned and a new game will begin.
International trade has already started to price commodities in Euros as foreign governments holding dollars have lost their shirts while holding Euros has increased their buying power.
The Euro was introduced with the same degree of stealth such that the citizens of Europe had little choice but to adopt it.
Some thought a European union was an impossible dream but now they have 27 nations under its authority with more members waiting in the wings.
The U.S. is already facing economic hardship which will only get worse. The Amero will be introduced to the American public as the administrations solution to recover from the current financial mess.
In Canada, the Canadian dollar has been trading at close to par for several months. Canadian politicians can easily sell the idea of the Amero by simply making promises of cheaper gas prices (Americans pay amongst the lowest prices in the western world.) Plus many Canadians who live near the border travel to the U.S. for major shopping binges buying assortment of much cheaper goods from dairy products, used cars, electronics and clothing. If they can get the same prices at home, the NAU will be an easy sell.
As far as the Mexicans are concerned well, doesn’t nearly everyone already speak Spanish from California to Florida?
In the interim, gold’s still got a long way to go so stay tuned. However be aware that the Amero will put the brakes on gold’s march as the illusion of strength and power will put confidence into the world’s latest fiat money system. Also know that in the history of mankind, fiat money systems have always failed. The U.S. dollar is the latest victim. Bill Ridley: jameswinston.com/
Best regards
Randy
Wall Street rallied Thursday after the government's jobless claims data and Ford Motor Co.'s first-quarter results helped reinject some optimism about the economy into the market.
The Dow Jones industrial rose more than 80 points as investors focused on the Labor Department data showing weekly unemployment claims dropped and word that Ford had a $100 million profit in the first quarter.
Investors were also able to set aside any concerns about another drop in factory orders for big-ticket manufactured goods and weak forecasts from Amazon.com Inc. and Starbucks Corp.
OK, I'll give the indices credit for this, but what of other news today?
New home sales plunge to lowest level in 16 1/2 years, prices drop by largest amount in 38 years
Sales of new homes plunged in March to the slowest pace in 16 1/2 years as a two-year housing downturn extended into the start of another spring sales season. The median price of a new home in March compared to a year ago fell at the fastest clip in 38 years.
Sales of new homes dropped by 8.5 percent last month to a seasonally adjusted annual rate of 526,000 units, the slowest sales pace since October 1991, the Commerce Department reported Thursday.
The median price of a home sold in March dropped by 13.3 percent compared with March 2007, the biggest year-over-year price decline since a 14.6 percent plunge in July 1970.
As financial markets grow increasingly worried about inflation pressures, Freddie Mac reports that fixed-rate mortgages move higher--Rates on 30-year mortgages now top 6%
"Average rates on mortgages increased across the board this last week as the most recent economic data raised inflationary concerns in the capital markets," said Frank Nothaft, Freddie Mac's chief economist.
Fueling those concerns was a bigger-than-expected 1.1% jump in wholesale prices and a renewed surge in energy costs, which have pushed gasoline and crude oil prices to record levels.
US Airways, following Delta & Northwest, Reports Loss
US Airways Group Inc. said Thursday it swung to a loss in the first quarter, punished like other airlines by the rising cost of jet fuel.
US Airways said it lost $236 million, or $2.56 a share, in the January-March period, compared with a profit of $66 million, or 70 cents a share, a year earlier. Excluding special items, the net loss was $239 million, or $2.60 a share.
US Airways' earnings report came a day after Northwest Airlines Corp. and Delta Air Lines Inc. reported combined losses of more than $10 billion. Most of those losses came on write-downs to reflect a decline in market value.
Motorola 1st-qtr loss widens as mobile-device sales plunge and it forecasts 2nd-qtr loss
Struggling cell phone maker Motorola Inc. disappointed investors Thursday when it posted a wider first-quarter loss and failed to meet revenue forecasts.
The suburban Chicago company, which is in the midst of a massive reorganization that includes splitting itself into two publicly traded companies, said it lost $194 million, or 9 cents per share, for the quarter that ended March 31.
Sales fell about 21 percent to $7.45 billion, down from $9.43 billion a year ago.
Microsoft reports 11 pct profit drop
Microsoft Corp.'s third-quarter profit fell 11 percent, the software maker reported Thursday as executives renewed their warning that they may go hostile or walk away from their $44 billion-plus offer for Yahoo Inc. if Yahoo doesn't agree to a deal by Saturday
Sales of Windows software were not as strong as Microsoft or analysts had predicted in the quarter, despite Microsoft's comments that sales of Vista licenses -- now at 140 million, up from the 100 million mark reached in January -- are on track.
Revenue in that division fell 24 percent to $4.02 billion.
American Express profit falls 6%; New York-based credit-card company slips as U.S. cardholders struggle to make their payments.
American Express Co.'s first-quarter profit slipped 6% as the credit-card lender saw more U.S. cardholders fail to make their payments, it said Thursday.
Like other lenders, the New York-based company has been writing off more loans as unpaid as U.S. borrowers struggle with slumping home prices, rising costs, and a less certain job market.
The company's total provisions for credit losses amounted to $1.27 billion, a 48% increase from the first quarter of 2007.
U.S. card services profit fell 19% to $523 million in the first quarter compared with the same period a year earlier, as profit from international card services rose 30% to $133 million.
The writeoff rate in U.S. card services, including both on-balance sheet cardmember loans and off-balance sheet securitized cardmember loans, increased to 5.3% from 3.7% a year ago - faster than the company anticipated.
United hikes fares 3% to 5%, blaming fuel costs; The second-largest U.S. carrier increases almost all of its domestic airfares for the third time in two weeks.
United Airlines, the second-largest U.S. carrier, raised nearly all its domestic airfares by 3% to 5% Thursday as it struggles to cope with soaring fuel costs.
The widespread increase is the third in a row initiated by United in just over two weeks, and will likely entice other carriers to follow suit. The Chicago-based carrier's last two attempts were quickly matched by competitors and remain in place in many markets.
The move comes just two days after Delta Air Lines Inc. Chief Executive Richard Anderson said domestic carriers need to raise tickets 15% to 20% just to break even at existing fuel prices.
"This is the most challenging financial period in the history of the industry," said John Heimlich, chief economist of the Air Transport Association. "Just at the same time we have this unprecedented surge in jet fuel prices with no end in sight, we're bumping up against a weakening economy."
My Thoughts:
Maybe I'm biased, but based on the news reports above, it certainly doesn't look like our economy is getting any better... Could the PPT and pundits possibly be trying to lull the cattle into a false sense of security while leading them to the slaughterhouse? Oh well, until the sheeple (cattle) pull their heads out of the sand there is really nothing I can do about it...
OK, last but certainly not least, here is a very good opinion article that I thought you would enjoy:
The U.S. Dollar has Been the Gold Bug’s Best Friend – Until the “Amero” Debuts
As all gold bugs know, gold’s historic rise since 2001 has largely been attributed to the dilution of the U.S. dollar. Trade deficits, government overspending and the more recent sub-prime mortgage debacle have all helped deflate the greenback while driving up the price of gold.
However, what would happen if the U.S. dollar just disappeared? How would gold and other hard assets be valued then?
This week the three NAFTA amigos, President George Bush, Prime Minister of Canada Stephan Harper and Mexican President Felip Calderon met to ram new polices down our throats which will impact gold and other commodity prices going forward.
The reopening of the North American Free Trade Agreement is the first strategic move toward a North American Union that will create a new currency to compete with the Euro.
On Tuesday, the U.S. dollar sank yet again with the Euro breaching the psychologically significant $1.60 mark for the first time.
It’s only a matter of time before the U.S. dollar collapses to the point of no return internationally. With the Fed unable to manage the slide with higher interest rates due to the economic slowdown in the U.S., the three amigos are setting up the chess pieces for the inevitable next move: the creation of a North American currency, the “Amero.”
The Hallmark of Bush’s presidency could very well be the creation of the Amero, the perfect solution and savior to the failing U.S. dollar. Whether it’s Bush or the next president, at some point in the not too distant future the dollar will be abandoned and a new game will begin.
International trade has already started to price commodities in Euros as foreign governments holding dollars have lost their shirts while holding Euros has increased their buying power.
The Euro was introduced with the same degree of stealth such that the citizens of Europe had little choice but to adopt it.
Some thought a European union was an impossible dream but now they have 27 nations under its authority with more members waiting in the wings.
The U.S. is already facing economic hardship which will only get worse. The Amero will be introduced to the American public as the administrations solution to recover from the current financial mess.
In Canada, the Canadian dollar has been trading at close to par for several months. Canadian politicians can easily sell the idea of the Amero by simply making promises of cheaper gas prices (Americans pay amongst the lowest prices in the western world.) Plus many Canadians who live near the border travel to the U.S. for major shopping binges buying assortment of much cheaper goods from dairy products, used cars, electronics and clothing. If they can get the same prices at home, the NAU will be an easy sell.
As far as the Mexicans are concerned well, doesn’t nearly everyone already speak Spanish from California to Florida?
In the interim, gold’s still got a long way to go so stay tuned. However be aware that the Amero will put the brakes on gold’s march as the illusion of strength and power will put confidence into the world’s latest fiat money system. Also know that in the history of mankind, fiat money systems have always failed. The U.S. dollar is the latest victim. Bill Ridley: jameswinston.com/
Best regards
Randy
Saturday, March 08, 2008
Final US Economic End-Game
I hope this post serves a useful purpose and helps to shed some light on what may potentially lie in store for our economy/way of life.
Based on what we have just learned above (that monetary growth and consumer inflation are rising, and that the Fed/PPT have officially sacrificed the US dollar to prevent a depression), if we now gaze into our crystal ball and look out at the next 5 years or so, what should/can we expect to see?
Logic reasoning leads us to believe it has now become official Government policy to try to inflate our way out way out of this financial crisis, so lets assume a master plan exists to bail out numerous banks/financial institutions and rescue the bond, housing and various other markets. Let’s then go on to assume a plan exists to eventually ramp up numerous government infrastructure and military/industrial projects to promote US job growth (in the midst of our deep/dark recession).
To keep the math easy, and assuming all of the above takes place, let’s now presume (being conservative here) M3 Growth averages 20% over the next 5 years to fund all these new government efforts… Therefore, in 5 years time, M3 (worldwide US money supply) will have doubled and M3 will equate to ~ 27 Trillion US Dollars. Note: by that time inflation will be raging and the dollar’s purchasing power will be halved (if not more by then; it really depends on foreign dollar holders—will they cash before then?).
By continuing to understate inflation (as you saw in the Inflation graph above) over the next 5 years and more, the US government will be able to pay all its currently un-funded obligations (Social Security, Pension Benefits, Military Pay/retirements, Medicare obligations, even foreign held debt) with significantly devalued dollars—costing the government far less over time.
In other words (lets use a Social Security recipient as an example): Grandma will still get her entitled (currently unfunded) $1,200-1,400 monthly Social Security Check (w/annual increases tied to Gvt's lower CPI rate), but if her utility bills have doubled and she now pays $8 a gallon for Gas, $7.50 for a gallon of Milk, $5 for a loaf of Bread, $4 for a pound of Chicken and $10 for a “value meal” at McDonalds, her purchasing power has been reduced substantially. The government still pays its obligation, but with devalued dollars and w/severely reduced purchasing power.
Thus: Inflation (monetary growth of printed dollars) has eroded unfunded Gvt debt/obligations, but at the cost of American purchasing power and standard of living—it will have dropped significantly. Ultimately, over time, the Gvt. actually pays out less than that which it really owes—through devalued dollars (it’s all smoke and mirrors).
If you haven’t already done so, read the following links for some thoughts on the issue:
Social Implications of a Significant Economic Downturn
Today, with bad new all around, many make attempts to dissect the individual aspects of the myriad of economic problems that contribute to our problematic US economic condition, but few really try to think ahead and analyze the final end-game. With this post, I hope to do just that, and will attempt to answer the following six questions:
1) What is happening with regard to our economy?
1) What is happening with regard to our economy?
2) Why would our monetary policy-masters want a weaker dollar?
3) Where do we go from here?
4) What long-term exit strategy can we expect to see from our monetary policy masters?
3) Where do we go from here?
4) What long-term exit strategy can we expect to see from our monetary policy masters?
5) How does inflation help the Government and what are the impacts to its people?
6) How will people cope with reduced purchasing power and a much lower standard of living?
So, what is happening with regard to our Economy?
Though I’ve been talking about it since 05 (and many early on considered me a knucklehead for my non-conformist viewpoint), I think it is now becoming common knowledge that the largest speculative bubble in our world’s history (housing bubble) has popped and its reverberations are being felt across the globe:
Though I’ve been talking about it since 05 (and many early on considered me a knucklehead for my non-conformist viewpoint), I think it is now becoming common knowledge that the largest speculative bubble in our world’s history (housing bubble) has popped and its reverberations are being felt across the globe:
Hedge funds are collapsing, bank write-downs are growing, toxic waste marked-to-model Commercial Paper (CP) sitting in off-balance sheets cannot be offloaded, credit markets are completely locked up, home foreclosures (the catalyst to all these problems) are growing, consumer spending (70% of our economy) is waning, consumer inflation is raging, construction spending is down, the dollar is falling off a cliff, job losses are increasing, state revenue is falling—many are slashing budgets, and the list goes on…
The Fed and our Plunge Protection Team (PPT) understand that deflation is taking hold and they are operating in emergency mode... In a brazen attempt to prevent a collapse of the entire banking/financial systems (and hence the US Economy) “Helicopter” Ben Bernanke has officially sacrificed the dollar in the hopes of printing/inflating our way out of this financial mess -- to prevent an economic depression.
Take a look at the US dollar chart below -– NEVER in our country’s history has the US Dollar been weaker. Why so low? Our policymakers are covertly demanding a weak dollar.
The Fed and our Plunge Protection Team (PPT) understand that deflation is taking hold and they are operating in emergency mode... In a brazen attempt to prevent a collapse of the entire banking/financial systems (and hence the US Economy) “Helicopter” Ben Bernanke has officially sacrificed the dollar in the hopes of printing/inflating our way out of this financial mess -- to prevent an economic depression.
Take a look at the US dollar chart below -– NEVER in our country’s history has the US Dollar been weaker. Why so low? Our policymakers are covertly demanding a weak dollar.
But why would our monetary policy-masters want a weaker dollar?
Well, as I see I see it, there are several reasons:
A devalued dollar will (over time) allow the United States to 1) eliminate much of its foreign debt through devalued payback 2) pay for future (currently $60 Trillion) in un-funded obligations through cheaper payouts 3) reduce US labor costs in the global marketplace –- making US manufacturing competitive in the world again, and 4) a side effect -- lower the US standard of living through massive inflation -- ultimately stoking a grass roots demand for some relief and opening the doorway for successful implementation of a new “stable” currency to replace the ailing dollar –- The AMERO.
Additionally, somewhere along the way, we will probably experience a new war to: 1) secure natural resources, 2) create US jobs to support the military/industrial complex, and 3) help to take our minds off the economic misery we are all experiencing.
Well, as I see I see it, there are several reasons:
A devalued dollar will (over time) allow the United States to 1) eliminate much of its foreign debt through devalued payback 2) pay for future (currently $60 Trillion) in un-funded obligations through cheaper payouts 3) reduce US labor costs in the global marketplace –- making US manufacturing competitive in the world again, and 4) a side effect -- lower the US standard of living through massive inflation -- ultimately stoking a grass roots demand for some relief and opening the doorway for successful implementation of a new “stable” currency to replace the ailing dollar –- The AMERO.
Additionally, somewhere along the way, we will probably experience a new war to: 1) secure natural resources, 2) create US jobs to support the military/industrial complex, and 3) help to take our minds off the economic misery we are all experiencing.
So, where do we go from here?
As previously stated, the PPT is attempting to fight deflation with new inflation and the Fed’s monetary printing presses are gearing up to start working overtime. (NOTE: Money=Debt and lack of new consumer/corporate debt means less new money to service older debt, which means declining GDP, defaults and deflation)
Today there are > $13 Trillion Dollars circulating the globe and M3 Growth (expanding US Money Supply) is increasing at an annual 18% rate (see chart below).
M3 -- US Money Supply Growth rate & US Dollars in Circulation
(Note: as an aside, only ~ $400 Billion of this, ~ 3%, is available in cold hard cash in the US -- most of these $13T dollars are 1’s & 0’s on a computer hard-drive somewhere—God help us if we experience banking runs…)
As previously stated, the PPT is attempting to fight deflation with new inflation and the Fed’s monetary printing presses are gearing up to start working overtime. (NOTE: Money=Debt and lack of new consumer/corporate debt means less new money to service older debt, which means declining GDP, defaults and deflation)
Today there are > $13 Trillion Dollars circulating the globe and M3 Growth (expanding US Money Supply) is increasing at an annual 18% rate (see chart below).
M3 -- US Money Supply Growth rate & US Dollars in Circulation
(Note: as an aside, only ~ $400 Billion of this, ~ 3%, is available in cold hard cash in the US -- most of these $13T dollars are 1’s & 0’s on a computer hard-drive somewhere—God help us if we experience banking runs…)
Consumer inflation typically lags M3 growth (those with new dollars first can buy more than those who receive dollars later in the game), but we know inflation in the US is currently running ~ 12% today (next chart below -- measuring inflation w/metrics abandoned in the 1980’s– abandoned to understate inflation, reduce Gvt. entitlement payouts over time and to overstate GDP).
Annual Consumer Inflation Chart – The red line illustrates what our Gvt wants you to believe (inflation ~ 4%); the blue line is our actual inflation rate (~12%); Remember, consumer inflation lags new monetary creation, so you can be certain (after looking at M3 again—the 1st chart) that consumer inflation has only one way to go –- UP!
Annual Consumer Inflation Chart – The red line illustrates what our Gvt wants you to believe (inflation ~ 4%); the blue line is our actual inflation rate (~12%); Remember, consumer inflation lags new monetary creation, so you can be certain (after looking at M3 again—the 1st chart) that consumer inflation has only one way to go –- UP!
What long-term exit strategy can we expect to see from our monetary policy masters?
Based on what we have just learned above (that monetary growth and consumer inflation are rising, and that the Fed/PPT have officially sacrificed the US dollar to prevent a depression), if we now gaze into our crystal ball and look out at the next 5 years or so, what should/can we expect to see?
Logic reasoning leads us to believe it has now become official Government policy to try to inflate our way out way out of this financial crisis, so lets assume a master plan exists to bail out numerous banks/financial institutions and rescue the bond, housing and various other markets. Let’s then go on to assume a plan exists to eventually ramp up numerous government infrastructure and military/industrial projects to promote US job growth (in the midst of our deep/dark recession).
To keep the math easy, and assuming all of the above takes place, let’s now presume (being conservative here) M3 Growth averages 20% over the next 5 years to fund all these new government efforts… Therefore, in 5 years time, M3 (worldwide US money supply) will have doubled and M3 will equate to ~ 27 Trillion US Dollars. Note: by that time inflation will be raging and the dollar’s purchasing power will be halved (if not more by then; it really depends on foreign dollar holders—will they cash before then?).
How does this inflationary effect help the Government and what are the impacts to be felt by the people?
By continuing to understate inflation (as you saw in the Inflation graph above) over the next 5 years and more, the US government will be able to pay all its currently un-funded obligations (Social Security, Pension Benefits, Military Pay/retirements, Medicare obligations, even foreign held debt) with significantly devalued dollars—costing the government far less over time.
In other words (lets use a Social Security recipient as an example): Grandma will still get her entitled (currently unfunded) $1,200-1,400 monthly Social Security Check (w/annual increases tied to Gvt's lower CPI rate), but if her utility bills have doubled and she now pays $8 a gallon for Gas, $7.50 for a gallon of Milk, $5 for a loaf of Bread, $4 for a pound of Chicken and $10 for a “value meal” at McDonalds, her purchasing power has been reduced substantially. The government still pays its obligation, but with devalued dollars and w/severely reduced purchasing power.
Thus: Inflation (monetary growth of printed dollars) has eroded unfunded Gvt debt/obligations, but at the cost of American purchasing power and standard of living—it will have dropped significantly. Ultimately, over time, the Gvt. actually pays out less than that which it really owes—through devalued dollars (it’s all smoke and mirrors).
So, how will people cope with reduced purchasing power and a much lower standard of living?
With inflation and unemployment raging, tens of millions of Americans will not be able to make ends meet and cutbacks in lifestyle 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 or rent out a room, purchase a more fuel efficient car; drive MUCH less -- car-pooling will become 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...)
With inflation and unemployment raging, tens of millions of Americans will not be able to make ends meet and cutbacks in lifestyle 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 or rent out a room, purchase a more fuel efficient car; drive MUCH less -- car-pooling will become 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...)
Bottom Line: life will become much more expensive/difficult than that which we know today. We could even see oil/fuel shortages due to geopolitical unrest/war, and food shortages could be an issue too -- world food stores are currently at a 50-60 year low with no relief in sight. (Global food crisis—credit crunch could pale in comparison)
Anyway, you ask: What then happens to society?
If you haven’t already done so, read the following links for some thoughts on the issue:
Social Implications of a Significant Economic Downturn
Our long-term way Ahead:
There is however, potentially very good news that will follow this EXTREMELY difficult period in America: Over time, a much lower US standard of living and a significantly devalued US dollar will make it much cheaper to manufacture in the US again, and 15-25 years from now our massive debt loads will have subsided and all those outsourced jobs will eventually come back home. Then we will be able to do more than sell each other cheaply manufactured goods -- we will actually make them again. For more on this subject, read my Jan 06 article: American Wake Up Call
There is however, potentially very good news that will follow this EXTREMELY difficult period in America: Over time, a much lower US standard of living and a significantly devalued US dollar will make it much cheaper to manufacture in the US again, and 15-25 years from now our massive debt loads will have subsided and all those outsourced jobs will eventually come back home. Then we will be able to do more than sell each other cheaply manufactured goods -- we will actually make them again. For more on this subject, read my Jan 06 article: American Wake Up Call
Bottom line to this article:
I think our day of reckoning has finally arrived. We Americans have lived too comfortably for far too long by sucking up 80% of the world's savings and then we wanted more, so we racked up ENORMOUS personal and Gvt Debt loads that must be paid -- paid through Gvt. monetization, massive dollar devaluations and a much lower standard of living.
As stated previously, the PPT is fighting deflation w/inflation, so we will probably experience concurrent deflation and inflation – if/until the deflationary forces are won over.
I expect, over the next 5 years or so, consumer inflation to be completely out of control, but there is nothing the Fed can do about it -- without throwing the economy into a depression.
Ultimately, the US dollar will plummet in value and its fate as the defacto "World Reserve Currency" could soon be brought to question -- but that might be part of our monetary policy master's "master-plan" anyway, as it will allow the Amero to slip right into its place without an American revolt.
I think our day of reckoning has finally arrived. We Americans have lived too comfortably for far too long by sucking up 80% of the world's savings and then we wanted more, so we racked up ENORMOUS personal and Gvt Debt loads that must be paid -- paid through Gvt. monetization, massive dollar devaluations and a much lower standard of living.
As stated previously, the PPT is fighting deflation w/inflation, so we will probably experience concurrent deflation and inflation – if/until the deflationary forces are won over.
I expect, over the next 5 years or so, consumer inflation to be completely out of control, but there is nothing the Fed can do about it -- without throwing the economy into a depression.
Ultimately, the US dollar will plummet in value and its fate as the defacto "World Reserve Currency" could soon be brought to question -- but that might be part of our monetary policy master's "master-plan" anyway, as it will allow the Amero to slip right into its place without an American revolt.
I hope this article provided you with some nourishing "food for thought".
Best regards
Randy
Tuesday, November 27, 2007
AMERO and the North American Union
Some of our secretive leaders are working a plan to replace the US Dollar with the Amero--a joint American, Canadian and Mexican Currency.
- Do you want to know why we have a completely ineffective border policy?
- Do you want to know why the Dollar has been sacrificed?
- Do you want to know why we've outsourced our manufacturing base?
Well, many of these answers lie below--It's all about big business, corporate profits and unfulfilled family promises.
This first video is one of our elected representatives Rep. Marcy Kaptur (D. Ohio) discussing NAFTA and Globalists on CSPAN -- Finally, a non-insider representative, looking out for our (the people's) best interests. Why don't we see this type of discussion from our Presidential front runners? hmmm...
Wake up people! Before it's too late!
The rest of these videos speak for themselves. Therefore I will comment no more.
**CAUTION: Foul Language in this video**
- Do you want to know why we have a completely ineffective border policy?
- Do you want to know why the Dollar has been sacrificed?
- Do you want to know why we've outsourced our manufacturing base?
Well, many of these answers lie below--It's all about big business, corporate profits and unfulfilled family promises.
This first video is one of our elected representatives Rep. Marcy Kaptur (D. Ohio) discussing NAFTA and Globalists on CSPAN -- Finally, a non-insider representative, looking out for our (the people's) best interests. Why don't we see this type of discussion from our Presidential front runners? hmmm...
Wake up people! Before it's too late!
The rest of these videos speak for themselves. Therefore I will comment no more.
**CAUTION: Foul Language in this video**
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