Sunday, October 3, 2010

America Trending Towards and Inflationary Economic Depression

"...We are in an inflationary depression and have been since February 2009. Bogus government statistics in GDP, CPI, and PPI and in employment are masking the ugly truth. It’s the 1930s all over again except this time it will be much worse. No recovery can sustain because all the Fed, Treasury and the administration are doing is throwing money at the problem and that is not the solution. We just saw a five quarter bounce borne by $2.5 trillion and now the Fed and the administration are planning two more such rescues for the next two years, which will cost a minimum of $5 trillion. They should end up in hyperinflation and a realignment of currencies, devaluation, revaluation and multilateral debt default. In the ‘30s the economy jumped 8% not 3-1/4%, with the same kind of stimulus and the market rose 50%. This time it rose from 6550 on the Dow to 11,700. A repetition of 1932-33. Along the way many individual investors have left the market after realizing the Fed and the government had it rigged for Wall Street. Front running, insider trading and naked shorting are tolerated on a massive scale. Everyone seems to forget that between 1930 and 1936 gold and silver shares, during a deflationary depression, appreciated 500%..."

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