The Inflation Rate Is A Lie Too

Can we believe any of the economic numbers that the government is feeding us these days?  Most of the focus recently has been on the bizarre jobs report that the government released last Friday, but the truth is that the inflation rate is a lie too.   In fact, the way that the government calculates inflation has changed more than 20 times since 1978.   The government is constantly looking for ways that it can make inflation appear to be even lower.  According to John Williams of shadowstats.com, if inflation was measured the same way that it was back in 1990, the inflation rate would be about 5 percent right now.  If inflation was measured the same way that it was back in 1980, the inflation rate would be about 9 percent right now.  But instead, we are expected to believe that the inflation rate is hovering around 2 percent.  Well, anyone that goes to the supermarket or fills up their vehicle with gasoline knows that prices are going up a lot faster than that.  Just about everything that we buy on a regular basis is steadily becoming more expensive, and so most Americans are not buying it when government officials tell us that there is barely any inflation right now. (Read More...)

Did Turkey Just Declare War On Syria?

The Turkish Parliament has “authorized military operations” against Syria.  So exactly what does that mean?  Did Turkey just declare war on Syria?  For now, the government of Turkey is making a clear distinction between “military operations” and “declaring war”.   If Turkey were to “declare war”, that would likely involve Turkish troops actually entering Syria, and the war would not be considered “won” until certain objectives are achieved.  So by just authorizing “military operations” against Syria, Turkey can sit back and fire off artillery rounds (and potentially call in air strikes if necessary) without being committed to entering Syria or attacking Damascus.  Turkey is not too keen on invading Syria by itself anyway.  Turkey would want the help of NATO in such an event, and right now Barack Obama has made it abundantly clear to the Turkish government that he is not going to participate in an attack on Syria before the election.  Obama has been leading in the polls and he has way too much to lose by starting another war.  But what all of this does show us is a couple of things.  First of all, once again we see that the Middle East is a tinderbox that can erupt at any moment.  Second of all, just the rumors of a war between Turkey and Syria sent the price of oil absolutely skyrocketing on Thursday.  It is frightening to imagine what a real war in the Middle East might do to the price of oil. (Read More...)

The Last Housing Crash Is Not Even Over But Bernanke Is Already Setting The Stage For The Next One

Federal Reserve Chairman Ben Bernanke is determined to push mortgage rates to record low levels and he is encouraging the banks that the Fed regulates to make home loans more freely.  Wait a second – isn’t that exactly what caused the last housing bubble?  After 9/11, the Federal Reserve slashed interest rates and this caused mortgage rates to steadily fall.  Financial institutions were urged to help “expand home ownership” in America, and many of them started making home loans to people who never, ever should have gotten home loans.  When mortgage rates started to go back up, millions of families with adjustable rate mortgages discovered that they could not make their monthly payments.  Mortgage delinquencies absolutely soared and large numbers of mortgage-backed securities suddenly turned into garbage.  So what is the Fed doing about it?  The Fed recently announced another round of quantitative easing in which it will buy 40 billion dollars worth of these mortgage-backed securities a month.  Essentially the Fed is clearing the bad financial paper out of the system and is creating the conditions for another housing bubble.  But will we really fix our problems by going back and doing the same things that got us into trouble in the first place? (Read More...)

19 Signs That America Is Being Systematically Transformed Into A Giant Surveillance Grid

You are being watched.  The control freaks that hold power in the United States have become absolutely obsessed with surveillance.  They are constantly attempting to convince the American people that we are all “safer” when virtually everything that we do is watched, monitored, tracked and recorded.  Our country is being systematically transformed into a giant surveillance grid far more comprehensive than anything George Orwell ever dreamed of.  If you still believe that there is such a thing as “privacy” in this day and age, you are being delusional.  Every single piece of electronic communication is monitored and stored.  In fact, they know that you are reading this article right now.  But even if you got rid of all of your electronic devices, you would still be constantly monitored.  As you will read about below, a rapidly growing nationwide network of facial recognition cameras, “pre-crime” surveillance devices, voice recorders, mobile backscatter vans, aerial drones and automated license plate readers are constantly feeding data about us back to the government.  In addition, private companies involved in “data mining” are gathering literally trillions upon trillions of data points about individual Americans each year.  So there is no escape from this surveillance grid.  In fact, it has become just about impossible to keep it from growing.  The surveillance grid is expanding in thousands of different ways, so even if you stopped one form of surveillance you would hardly make a dent in the astounding growth of this system.  What we desperately need is a fundamental cultural awakening to the importance of liberty, freedom and privacy.  Without such an awakening, the United States (along with the rest of the planet) is going to head into a world that will make “1984” by George Orwell look like a cheery story about a Sunday picnic. (Read More...)

10 Quotes From Financial Experts About The Effect That QE3 Will Have On Gold And Silver

Do you want to know what QE3 is going to do to the price of gold and the price of silver?  Well, you can read what the financial experts are saying below, but it doesn’t take a genius to figure out what is likely to happen.  During QE3, the Federal Reserve will be introducing 40 billion new dollars that have been created out of nothing into the financial system each month.  So there will be more dollars chasing roughly the same number of goods and services, and that means that more inflation is on the way.  In an inflationary environment, investors tend to flock to hard assets such as gold and silver.  And it is important to remember that a lot of the money from QE1 and QE2 ended up pumping up the prices of various financial assets.  This included commodities such as gold and silver.  The same thing is likely to happen again with QE3.  In addition, investors now have an expectation that the Fed will continue printing money for the foreseeable future and that the U.S. dollar is going to steadily decline, and that expectation will also likely give further momentum to the upward movement of gold and silver.  Of course when it comes to investing, there is never a “sure thing” and as the global financial system falls apart in the coming years we are likely to see wild swings in the financial markets.  So there is definitely an opportunity when it comes to gold and silver, but anyone that wants to invest in gold and silver needs to be ready for a wild ride. (Read More...)

10 Shocking Quotes About What QE3 Is Going To Do To America

Ready or not, QE3 is here, and the long-term effects of this reckless money printing by the Federal Reserve are going to be absolutely nightmarish.  The Federal Reserve is hoping that buying $40 billion worth of mortgage-backed securities per month will spur more lending and more economic activity.  But that didn’t happen with either QE1 or QE2.  Both times the banks just sat on most of the extra money.  As I pointed out the other day, U.S. banks are already sitting on $1.6 trillion in excess reserves.  So will pumping them up with more cash suddenly make them decide to start lending?  Of course not.  In addition, QE3 is not likely to produce many additional jobs.  As I showed in a previous article, the employment level did not jump up as a result of either QE1 or QE2.  So why will this time be different?  But what did happen under both QE1 and QE2 is that a lot of the money ended up pumping up the financial markets.  So once again we should see stock prices go up (at least in the short-term) and commodities such as gold, silver, food and oil should also rise.  But that also means that average American families will be paying more for the basic necessities that they buy on a regular basis.  The most dangerous aspect of QE3, however, is what it is going to do to the U.S. dollar.  Most of the rest of the world uses the U.S. dollar to conduct international trade, and by choosing to recklessly print money Ben Bernanke is severely damaging international confidence in our currency.  If at some point the rest of the world rejects the dollar and no longer wants to use it as a reserve currency we are going to be facing a crisis unlike anything we have ever seen before.  The real debate about QE3 should not be about whether or not it will help the economy a little bit in the short-term.  Rather, everyone should be talking about the long-term implications and about how QE3 is going to accelerate the destruction of the dollar. (Read More...)

Thanks Obama – The Terrorists You Used To Topple Regimes In Egypt And Libya Are Now Attacking Our Embassies

Many of us tried to warn Barack Obama that using militants from al-Qaeda and other terrorist organizations to overthrow governments in the Middle East would not end well.  The Obama administration has been so determined to get rid of some of these dictators in the Middle East that they have not even really stopped to think about who would be replacing them.  Our leaders assured us that those opposed to Mubarak and Gaddafi were “freedom fighters” that just wanted “liberty” and “democracy” in those countries.  Well, of course it turns out that the folks that took control of both Egypt and Libya bear no resemblance to George Washington whatsoever.  They have simply replaced one form of tyranny with an even worse form of tyranny.  Sadly, the last couple of days have been a huge wake up call for all of us.  Radical Islamic militants stormed the U.S. embassy in Cairo, Egypt and replaced the American flag with the al-Qaeda flag.  In Benghazi, Libya the U.S. consulate was attacked by a crowd equipped with guns, homemade bombs and rocket-propelled grenades.  They torched the consulate, looted it, and killed the U.S. ambassador and three other U.S. officials.  Apparently they are not as grateful for our help in “liberating” their homelands as the Obama administration thought they would be.  Unfortunately, our politicians fundamentally misunderstand what is going on in the Middle East, and this is going to continue to lead to more policy errors. (Read More...)

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