GUESS WHAT! We work for an hour at 21 and 1/4 times LESS than the minimum wage that your Father and mine earned in the 50's. That is slavery. And MEGA-INFLATION --the kind that makes any lifestyle at all impossible--- is dead ahead. You know how I know? Because I have good sense of smell. . I can smell the green printer's ink wafting from the U.S. Mint and hear the grinding sound of money being printed in the morning. OBAMA has another printing press right under the Oval Office and is PRINTING MONEY! The phony gushing sound you hear is government HYPOGLYCEMIA, SUGAR ADDICTION and all this INSULIN being spent in vast quantitites by the flunkie pretend-liberal leftist who is really serving the Finance Ministers of the UK who are trying to get ahead of the Tsunmai which is headed toward the Northern hemisphere and portends a lot of Pain for the Greenback.
But hey, the Failure of the Federal Reserve is just beyond that, so don't worry. It's a good thing. I used to have a POLY SCI guru, commie Stanley Aronowitz. He'd hold these meetings in the basement of a left wing church and tell us not to engage in activism. He said that kind of CHEMO would just hold off the Final Death of the West. And when the Big One hit and society flopped on its back, four paws to the sky, our 'worker's revolution' would be automatic. So I put my hand up and asked, "then why were we here? What should we do until the Revolution?" Meaning, to serve humanity? Aronowitz threw me out of the group. I slunk out to Wilshire Boulevard to find city cops writing down all our license plate numbers. Damn! I got fiched for nothing.
So here's what I learned in years of listening to revolution gurus. WHEN the dollar, i.e. our cherished GREENBACK crashes, and the dollar is sinking lower and lower every day against the Euro, Yen and Yuan, we will be the TIJUANA of the planet. Tycoons will come here and buy corporations, buildings, entire city blocks. You will have landlords and bosses who speak Mandarin, Sanskrit, Turkish and French and who know how to charge US in EUROS, YUAN, YEN and RUBLES and those will be big and fat. "We don' want no steenkin' dollars. Your rent now is $2,000 FIRM. " We will be sending our daughters across the border into Mexico to clean houses. The thing with inflation is, within the country, to us, our prices seem high. Because we get creeping inflation. But to the outsider, we're cheap. When My grandpa lived in Germany during the INFLATION of the 20's, Americans would arrive with 200$ and buy a mansion! The page I LINK to is his diary. Read it. Now, when a box of Grape Nuts hits 8$, then 18$, everyone you know will be in the dumpsters getting food and good luck gettin' any yourself.
I calculate the date of the ONSET of MEGA INFLATION to be AUGUST 12, 2012, when the real insider Brit bankers will create inflation -- that day because they will no longer need WORKERS. ^ See why by clicking there. So, we have 18 months to save enough moola, you, me & our family members, to share in and buy an acre l gas tank from the city, plant orchards, build a central cabin and 'agrarian worker villas' around it. There's time to do it. This will actually not cost a lot of money, especially if ten families share a farm and create 'worker' villas around a central hearth/kitchen, tv room. Do it as an anonymous pre-aged 'shelf corporation', address in a Post Box out of Utah, with shares being sold to your chums. We do not have to be inner city garbage scroungers fighting for stale Burger Buns. Not five days a week at least. We can retire to our Country Home and tend chickens, just come into the city on week-ends for flicks, buy salt, coffee, bacon, maybe, take our kids to the museum, then 'go home.'
To understand skinny bucks and what they do to inflation and your wallet,
I suggest
DEBT
FOR DUMMIES
You are young and may not recall what life was like in the fifties.
I GREW UP IN THE 1950's. Famlilies then supported themselves with one worker,
one job working 40 hours a week. Bought homes easily. Your generation
can't do that nor will your children do that. They will have to have two
wage earners, one has to have 2 jobs and they're still trying to squeak
by. If ordinary working stiffs got the same % of the wealth that they created
(like we almost got in the 50's) we could support our families
with one worker, one job working 2 days a week. Do you know an economist
figure out that a just economy today to be like the one we had in the fifties
would translate to Dad the Worker earning 170$ an hour. 21 and 1/4
times more than today's minimum wage. That's how good it was in the fifties.
WE ARE LIKE hamsters today in a spinning treadmill, frazzled trying to
keep up, but this kind of stress tweaks immune systems so we're dying early
like flies --a short brutal life. How did this happen? Since the
early fifties, we have been like
lobsters in a pot, coming to a gentle simmer, but so slow that
we didn't notice until the boil started & presto, we were cooked! Their
aim was clear, to cook us, to assure our workers were paid very little
compared to their true value to corporations that employed them.
The government knew --they can read stats, but we have lost our servants
in Congress and along with it, the country. Legislators today don't represent
their constituents. They serve the lobbyists who hold the stick of
butter, say bend over and oh yes, here are our campaign donations. That
butter money comes from the transnationals. Does it suit the big corps
to have humanity over a barrel? I don't think so. Their strategy
is skewed and doesn't even serve THEM! We can no longer buy their TV's
and SUVS
I found the FOLLOWING TEXT which also explains inflation and the causes.. online at a big money /economy wall street website: " We are headed toward inflation, toward 'death of the dollar and rent, utilities, food going sky high. By bailing out Wall Street and applying "band-aids" to the economy, Obama, directed by flunkies of the U.S. Federal Reserve * (neither federal nor U.S. au fond, ) may well be causing America's downfall - even as these moves hasten the demise of the greenback as a viable global currency." by Keith Fitz-Gerald
He goes on: "Because of such strategic missteps, U.S. consumers could be facing a long and painful economic malaise, similar to the "lost decade" of 1990s Japan, or the stagflation-riddled 1970s in the United States.
Make no mistake: If that happens, there are clear culprits - Fed Chairman Ben S. Bernanke, and his predecessor, Alan Greenspan, and Obama flunkie Tim Geithner. (SEE CAUSES OF MELTDOWN)
Bernanke "and Greenspan together have probably brought about the end of the Federal Reserve," Rogers said during the interview in Singapore. "We’ve had two central banks in America that failed and this third central bank will probably fail, too, because of Bernanke and Greenspan. The Federal Reserve just put $200 billion more onto its balance sheet of mortgages. Now I don’t know how big they can expand their balance sheet, but if they keep doing it, there’s only so much - and they just bought Bear Stearns (BSC)." Rogers first made a name for himself with The Quantum Fund, a hedge fund that’s often described as the first real global investment fund, which he and partner George Soros founded in 1970. Over the next decade, Quantum gained 4,200%, while the Standard & Poor’s 500 Index climbed about 50%.
Said author Jim Rogers. It was after Rogers "retired" in 1980 that the investing masses got to see him in action. Rogers traveled the world (several times), and penned such bestsellers as "Investment Biker" and the just-released "Bull in China." And he made some historic market calls: Rogers predicted China’s meteoric growth a good decade before it became apparent and he subsequently foretold of the powerful updraft in global commodities prices that’s fueled a year-long bull market in the agriculture, energy and mining sectors.
Given Rogers’ prescience - not to mention all the uncertainty facing U.S. investors right now - we thought it was well worth a sit-down with the noted guru, even though it meant traveling all the way to Singapore, where he now lives with his family, to do so.
During that interview in Singapore, his new home, Rogers also said that:
* Although the United States faces perhaps its most
daunting economic challenges in at least a generation, "in America, most
people do not understand that there is a problem."
* Because of these weak-dollar efforts - as well
as the billion-dollar bailouts - "America is now the largest debtor the
world has ever seen."
* Although the central bank seems intent on engineering
a U.S. economic rebound by creating an ultra-weak dollar, no country in
history has ever emerged from a serious financial crisis by "debasing its
currency."
The bottom line: The strategies that the central bank is currently employing are nothing short of "outrageous," Rogers said.
"You know, I’ve read the Federal Reserve Act," he said. "Nowhere does it say [the central bank is] supposed to bail out investment banks! Nowhere does it say you should bail out Wall Street. Their mandate was to have a sound currency, and then it was later expanded to have employment - to help employment. But nowhere does it say: ‘Bail out investment banks.’"
Let’s take a look at some of the highlights of the Money Morning interview
with investor and author Jim Rogers.
Keith Fitz-Gerald (Q): There’s a confluence of money flowing into and around China. Do you believe that the U.S., with all its current problems, will get left out?http://sanders.senate.gov/petition/?uid=5d1836fe-d883-42bc-af09-4e593a6cab76Jim Rogers: Absolutely.
The U.S. dollar is a terribly flawed currency. I’m trying to get all of my money out of U.S. dollars. I don’t know why anybody would put money into the U.S. dollar, and by extension into the U.S., as we stand here today. The U.S. is probably the largest debtor nation the world has ever seen!
The United States’ foreign debts are increasing at the rate of $1 trillion U.S. dollars every 15 months. U.S. foreign debt is over $13 trillion, and rising rapidly. It’s the official policy of the central bank to debase the currency. They’re trying to drive down the value of the dollar.
Q: The government has succeeded wildly, so far.
Rogers: You haven’t seen anything yet!
They’re trying to drive down the dollar. I’m trying to be patriotic. I’m trying to sell dollars. That’s what they want. I’m trying to help them drive down the value of the currency.
All Americans should. There are certainly probably good reasons to put some money in dollars. For instance, if you have to buy cotton, you have to have dollars.
But for the most part - I, anyway - am joining other people who’re trying to avoid the U.S. dollar, because Washington has sent a very clear signal: "We want the dollar to decline. We’re gonna do our best to make it decline."
Well, everybody has to make their own decision. I’m trying to do what the Federal Reserve wants me to do, and I’m selling dollars.
Q: My take is that former Fed Chair Alan Greenspan and current Fed Chairman Ben S. Bernanke may go down as the worst central bank chairmen in history. Do you see it differently?
Rogers: [Bernanke] and Greenspan together will probably bring [about] the end of the Federal Reserve. We’ve had two central banks in America that failed. This third central bank will probably fail, too, because of Bernanke and Greenspan.
The Federal Reserve last week put $200 billion more onto its balance sheet of mortgages. Now I don’t know how big they can expand their balance sheet, but if they keep doing it, there’s only so much - [and] they just bought Bear Stearns.
There’s just so much they can do. Maybe that balance sheet is infinite. I doubt it. And it can be said to be infinite; they just print money like Zimbabwe or someplace. But that has to come to an end, eventually.
Maybe Bernanke is going to get into his helicopter and fly around collecting rents now. Maybe when they repossess all the property, he’s going to be the rent collector. But then when they eventually take on all the car loans, I guess he’s going to be collecting car payments, too. And credit card debt, when they take over all the credit card payments, I guess he’ll be hauling us all out saying: "Your credit card’s overdue." This is insanity.
Q: Is there a circumstance under which you could see the U.S. recovering, or do you think this country is doomed to be an economic also-ran?
Rogers: Historically, nations that have gotten themselves into this kind of situation have only gotten out following a crisis or a semi-crisis, or some gigantic stroke of luck.
The U.K. got out because they discovered the North Sea. Now you give me the largest oil field in the world, or one of the largest oil fields in the world, I’ll show you a good time, too.
So if you have a stroke of luck [you can escape these kinds of problems], but otherwise, nobody’s ever sorted out these problems without some kind of gigantic crisis or semi-crisis first.
In America, most people do not understand there is a problem! The few who know there’s something going on don’t understand what it is. Most of them who understand it actually think it’s good that the currency’s declining. America’s not going to do anything until things get very, very bad.
Others that offer the rejoinder to this - that the declining dollar makes America competitive - [that] has worked in the short term. But no country has ever restored itself by debasing its currency, not in the long term, not even the medium term.
Many places have tried to debase their currency as a solution. It’s never worked, other than maybe in the short-term, for a while.
Q: Are we looking at a Japanese-style lost economic decade?
Rogers: The Federal Reserve is making the same mistakes that the Japanese made. They’re trying to say: "We won’t let anybody fail. We’ll print a lot of money. We’ll drive interest rates to zero. And we don’t want anybody to fail. We’ll put on as many Band-Aids as we have to."
Well, putting Band-Aids on a cancer patient is not a good solution.
So whether it’s like the ’90s in Japan, or the ’70s in America, remains to be seen.
[One-time U.S. Federal Reserve Chairman] Arthur Burns, who headed the central bank in the ’70s, did exactly what Bernanke’s doing. He raced in and printed money and said: "Oh, everything’s gonna be OK."
But the economy never recovered, inflation went through the roof, and the dollar was under duress. Eventually they had to bring in Paul Volcker and interest rates went over 20%. And eventually they killed inflation and they solved the problem.
They’re making exactly the same mistakes that Burns made. For whatever reason, though, this problem is going to last longer than previous difficulties in America. And it’s probably going to be worse.
Because, now, America is a debtor nation. Now we’re the largest debtor nation in the world. At least in the ’70s, we were still a creditor nation. Japan could survive because they were the largest creditor in the world at the time. So they didn’t fall off the face of the earth.
America’s now the largest debtor the world has ever seen. What’s happening in the U.S. is not going to be fun.
Q: Should the Fed be stepping in like it has in recent months?Rogers: It’s outrageous that Bernanke’s sitting there. You know, I’ve read the Federal Reserve Act. Nowhere does it say [the central bank is] supposed to bail out investment banks! Nowhere does it say you should bail out Wall Street. Their mandate was to have a sound currency, and then it was later expanded to have employment - to help employment. But nowhere does it say: ‘Bail out investment banks.’
Investment banks have been failing for centuries. The world hasn’t come to an end… even when investment banks have failed. They just caused a setback, and so what!
Recessions are usually good for the system. They clean out the excesses. And my God there’ve been excesses on Wall Street in the past 10 years. You don’t see a bunch of 29-year-old cotton farmers driving around in Maseratis and flying in private planes to exotic locations. Well, you see a lot of guys on Wall Street doing that.
And the idea that we’re now supposed to bail them out is ludicrous! I don’t see any of those guys sending their bonus checks back.
Huge amounts were made in the debt markets. We now know [that money was made] at least incorrectly, if not fraudulently, and yet, now we’re supposed to bail them out. It’s bad enough they get to keep their money. But the outrageous part is that it will cost more to try to prevent a recession than to have the recession.
We have safety nets in place, now. We did in the ’70s in America and the Japanese did in the ’90s. I think there’s good evidence that it will cost more to try to prevent the problems than to have the problems.
Q: That’s a very interesting thought that had not occurred to me before.
Rogers: Well, we’ll see if it’s right. In nature, there’s the natural phenomenon of forest fires. The forest fires are pretty terrible when they’re going on. But nature invented them to clean out the forest so that the forest could then come and grow from a new, sound foundation. That’s what recessions do, too. They’re a natural phenomenon.
Nobody likes it when we have them any more than anybody likes a forest fire. But in the end, everybody’s better off. Bernanke thinks he can stop this; he’s going to very well destroy the system by trying to save it.
Q: Could you see a segment of the financial system surviving this? Or do you think that there will be such catastrophic change that we won’t recognize it till several years from now?
Rogers: Ask me again in five years, 10 years. That was true after the ’30s, certainly. It was true even after the ’60s. Very few people went to Wall Street in the ’70s, very few. A whole generation ignored Wall Street in the ’30s and in the ’70s.
Will that happen again? Probably, because of things we’ve been discussing.
So there will be big changes, of course. If you’re in the field that deals with - and works out - bankruptcies, you’ve got a great future - on Wall Street, or in the legal profession. If you’re in commodities, you have a great future. Some sectors of the financial community are going to do well. Many others are going to disappear and/or do badly.
Q: How low could the dollar go?
Rogers: I have no idea. You just have to watch it as it evolves. Politicians and bureaucrats can do unbelievably stupid things, and have [done so] throughout history.
They will usually do things that are so stupid nobody can believe them, but it happens. You have to watch and see as it goes. Rate flipping caused this Meltdown. WHY do we have a FED in control of us? Who died and made the FED GOD? The Federal Reserve has four main responsibilities: to conduct monetary policy in a way that leads to maximum employment and stable prices; to maintain the safety and soundness of financial institutions; to contain systemic risk in financial markets; and to protect consumers against deceptive and unfair financial products.Fed Chairman Ben Bernanke has failed in all four of these responsibilities. So did Alan Greenspan.
POSTER's note, smart chum -- SOLARVOLT his monniker-- told me
the real start of slavery was when the FEDERAL RESERVE bill was snuck by
Congress during Woodrow Wilson's reign. He later said it was his worst
error. Get the book:
http://www.amazon.com/Creature-Jekyll-Island-Federal-Reserve/dp/0912986395/ref=sr_1_1?ie=UTF8&s=books&qid=1279666434&sr=8-1
[Editor’s Note: This is the first installment of a two-part story based on Investing Director Keith Fitz-Gerald’s interview with investing guru with Jim Rogers. In the second installment, Fitz-Gerald will explore China’s potential, the energy sector and the Middle East, and the global commodities boom.
* * * * * *
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