Critical data required for our survival as a "FREE" country - Don't shoot the messenger - This is NO laughing matter - THIS IS NOT FICTION

Fast Facts About Dr. Charles Krauthammer , MD 

1. Born: March 13, 1950
2. Birthplace: New York City, New York
3. Raised in Montreal, Canada
4. Attended Mc Gill University and Harvard Medical School
5. 1972 diving accident left him paralyzed from the neck on down.
6. Directed psychiatric research for the Carter administration
7. Began writing career in 1981 with The New Republic
8. Helped develop the "Reagan 

Doctrine" in the 80's

Appointed to Presidential Council on Bioethics in 2002

Dr.   Charles Krauthammer , MD  X.MA1.1300203869@aol.com" width="276" />

Dr. Krauthammer is frequently on the Fox News Channel. He is an M.D., a lawyer and is paralyzed from the neck down. A friend went to hear Charles Krauthammer . He listened with 25 others in a closed room. What he says here, is NOT 2nd-hand but 1st. The ramifications are staggering for us, our children and their children.

Last Monday was a profound evening, Dr. Charles Krauthammer spoke to the Center for the American Experiment.. He is a brilliant intellectual, seasoned & articulate. He is forthright and careful in his analysis, and never resorts to emotions or personal insults. He is NOT a fear monger nor an extremist in his comments and views . He is a fiscal conservative, and has received a Pulitzer Prize for writing. He is a frequent contributor to Fox News and writes weekly for the Washington Post.

The entire room was held spellbound during his talk. I have summarized his comments, as we are living in uncharted waters economically and internationally.

Even 2 Dems at my table agreed with everything he said!  If you feel like forwarding this to those who are open minded and have not drunk the Kool-Aid, feel free....

Summary of his comments:

1. Mr. Obama is a very intellectual, charming individual. He is not to be underestimated. He is a cool customer who doesn't show his emotions. It's very hard to know what's behind the mask. The taking down of the Clinton dynasty was an amazing accomplishment. The Clintons still do not understand what hit them. Obama was in the perfect place at the perfect time.

2. Obama has political skills comparable to Reagan and Clinton .

He has a way of making you think he's on your side, agreeing with your position, while doing the opposite. Pay no attention to what he SAYS; rather, watch what he DOES!

3. Obama has a ruthless quest for power. He did not come to Washington to make something out of himself, but rather to change everything, including dismantling capitalism. He can't be straightforward on his ambitions, as the public would not go along. He has a heavy hand, and wants to level the playing field with income redistribution and punishment to the achievers of society. He would like to model the USA to Great Britain or Canada .

4. His three main goals are to control ENERGY, PUBLIC EDUCATION, and NATIONAL HEALTHCARE by the Federal government. He doesn't care about the auto or financial services industries, but got them as an early bonus. The cap and trade will add costs to everything and stifle growth. Paying for FREE college education is his goal. Most scary is his healthcare program, because if you make it FREE and add 46,000,000 people to a Medicare-type single-payer system, the costs will go through the roof. The only way to control costs is with massive RATIONING of services, like in Canada . God forbid!

5. He has surrounded himself with mostly far-left academic types. No one around him has ever even run a candy store. But they are going to try and run the auto, financial, banking and other industries. This obviously can't work in the long run. Obama is not a socialist; rather he's a far-left secular progressive bent on nothing short of revolution. He ran as a moderate, but will govern from the hard left. Again, watch what he DOES, not what he says.

6. Obama doesn't really see himself as President of the United States , but more as a ruler over the world.. He sees himself above it all, trying to orchestrate & coordinate various countries and their agendas. He sees moral equivalency in all cultures. His apology tour in Germany and England was a prime example of how he sees America , as an imperialist nation that has been arrogant, rather than a great noble nation that has at times made errors. This is the first President ever who has chastised our allies and appeased our enemies!

7. He is now handing out goodies. He hopes that the bill (and pain) will not come due until after he is reelected in 2012. He would like to blame all problems on Bush from the past, and hopefully his successor in the future. He has a huge ego, and Dr. Krauthammer believes he is a narcissist.

8.. Republicans are in the wilderness for a while, but will emerge strong. Republicans are pining for another Reagan , but there will never be another like him. Krauthammer believes Mitt Romney, Tim Pawlenty & Bobby Jindahl (except for his terrible speech in February) are the future of the party. Newt Gingrich is brilliant, but has baggage. Sarah Palin is sincere and intelligent, but needs to really be seriously boning up on facts and info if she is to be a serious candidate in the future... We need to return to the party of lower taxes, smaller government, personal responsibility, strong national defense, and state's rights.

9. The current level of spending is irresponsible and outrageous. We are spending trillions that we don't have.. This could lead to hyperinflation, depression or worse. No country has ever spent themselves into prosperity. TheMedia is giving Obama, Reid and Pelosi a Pass because they love their agenda. But eventually the bill will come due and people will realize the huge bailouts didn't work, nor will the stimulus package.These were trillion-dollar payoffs to Obama's allies, unions and the Congress to placate the left, so he can get support for #4 above.

10. The election was over in mid-September when Lehman brothers failed, fear and panic swept in, we had an unpopular President, and the war was grinding on indefinitely without a clear outcome. The people are in pain, and the mantra of change caused people to act emotionally. Any Dem would have won this election; it was surprising it was as close as it was.

11. In 2012, if the unemployment rate is over 10%, Republicans will be swept back into power. If it's under 8%, the Dems continue to roll. If it's between 8-10%, it will be a dogfight. It will all be about the economy. I hope this gets you really thinking about what's happening in Washington and Congress. There is a left-wing revolution going on, according to Krauthammer, and he encourages us to keep the faith and join the loyal resistance. The work will be hard, but we're right on most issues and can reclaim our country, before it's far too late.

Do yourself a long term favor, send this to all who will listen to an intelligent assessment of the big picture. All our futures and children's futures depend on our good understanding of what is really going on in DC, and our action pursuant to that understanding!! It really IS up to each of us to take individual action!! Start with educating your friends and neighbors!!!

Posted via email from cash-gifts-gifting-generosity's posterous

Shutdown of Foreclosure Mills Gives New opportunity to Their Victims

---------- Forwarded message ----------
From: Bob Hurt <bob@bobhurt.com>
Date: Sat, Mar 26, 2011 at 2:05 PM
Subject: [Lawmen: 4249] Shutdown of Foreclosure Mills Gives New opportunity to Their Victims
To: lawmen@googlegroups.com

Quiet Your Title...Against Any of These EIGHT Foreclosure Mills

March 19, 2011 at 4:41pm

If you are currently in foreclosure and your loan is being processed by one of the following foreclosure mills:
1.  David Stern
2.  Marshall C. Watson
3.  Shapiro & Fishman
4.  Florida Default Law Group
5.  Kahane & Associates,
6.  Daniel C. Consuegra
7.  Albertelli Law and
8.  Ben-Ezra & Katz.

The principals have started shutting down these firms because of the Robo-signing scandals. This provides a unique opportunity for foreclosure victims of these firms to quiet title in their own names.

The courts will probably favor your challenge of the paperwork the above firms submitted in your case.

These firms probably still function as "Attorney of Record" for the fraudulent Plaintiffs and don't have the resources to submit motions to withdraw as Attorney of Record.

Move for Dismissal

Victims of these firms should find out what complaints the Attorney General has submitted against the firm in question, then serve the court with Mandatory Judicial Notice of that AG complaint.  The court will naturally doubt the validity of the Plaintiff's documents.  When the Plaintiff to prove validity, defendants can move for dismissal with prejudice, attorney fees and costs, and sanctions against the Plaintiff and the foreclosure mill's counsel.
If you want to know whether you can obtain such a dismissal, contact Randall Reder - reder at redersdigest dot com,  813 960 1952.  Dr. Reder can handle your case all the way through the appeals process if necessary.

Disgorgement, Treble Damages for Fraud, Quiet Title, Trover, Punitive Damages

Many facts justify asking the court to release the homeowner from obligation to pay the alleged lender, to reverse the purchase and mortgage, to disgorge all the funds, to find the lender guilty of fraud, to award treble damages to the alleged borrower, and quiet the title in favor of the homeowner.  Borrower/homeowners should investigate the facts and launch the attack against the lender and servicer before foreclosure ever happens, or after a dismissal, as above.

Appraisal fraud - Appraisers have conspired with lenders and realtors for 4 decades to over-inflate realty values.  Nearly every residence in Florida has sold for too much.

Induced fraud - The realty purchase agreement  obligates the buyer to consummate the sale upon loan approval.  So at the closing table, the buyer MUST sign the documents, and feels duress accordingly.  The process rushes the buyer into signing them without thoroughly reviewing them, a process that would take at least a day WITH advice of an attorney.  Furthermore, mortgage lenders have universally refused to provide bilateral loan contracts whereby they promise to lend money (cash or the equivalent) in exchange for the borrower's promise to repay  according to amortization schedule, making provision for the handling of defaults, and providing as exhibits the intended note and mortgage WELL IN ADVANCE of closing.  The closing process rushes the borrower, typically without legal counsel, into confronting and signing a pile of documents the borrower has never seen before. As a consequence, the buyer lies when signing the note's "for a loan I have received" and the mortgage's "I am seised of the estate."  Both statements constitute falsehoods and frauds because the buyer has neither received a loan or obtained the estate by seisen.  These lies void both the note and mortgage. 

Loan fraud - The closing officer takes signed documents, commits a felony by handing a hot check to the seller, and forwards the package to the lender.  The lender deposits the note and then electronically transfers to the title company bank the funds which the note created.  Thus, the borrower, not the lender, funded the loan.  The loan thereby became a fraud, and everything descending from it became void.  Furthermore, the lender fails to have any privity of contract with the borrower, having given nothing of value/consideration/detriment for the borrower's promise to pay.  When examining the mortgage, particularly a deed of trust, one cannot help noticing that the documents confer right and title to the lender.  Thus, the borrower borrowed the realty if anything at all, and did not borrow any money.  From the Wikipedia article:

A negotiable instrument can serve to convey value constituting at least part of the performance of a contract, albeit perhaps not obvious in contract formation, in terms inherent in and arising from the requisite offer and acceptance and conveyance of consideration. The underlying contract contemplates the right to hold the instrument as, and to negotiate the instrument to, a holder in due course, the payment on which is at least part of the performance of the contract to which the negotiable instrument is linked. The instrument, memorializing (1) the power to demand payment; and, (2) the right to be paid, can move, for example, in the instance of a 'bearer instrument', wherein the possession of the document itself attributes and ascribes the right to payment. Certain exceptions exist, such as instances of loss or theft of the instrument, wherein the possessor of the note may be a holder, but not necessarily a holder in due course. Negotiation requires a valid endorsement of the negotiable instrument. The consideration constituted by a negotiable instrument is cognizable as the value given up to acquire it (benefit) and the consequent loss of value (detriment) to the prior holder; thus, no separate consideration is required to support an accompanying contract assignment. The instrument itself is understood as memorializing the right for, and power to demand, payment, and an obligation for payment evidenced by the instrument itself with possession as a holder in due course being the touchstone for the right to, and power to demand, payment. In some instances, the negotiable instrument can serve as the writing memorializing a contract, thus satisfying any applicable Statute of Frauds as to that contract.

Discharge of obligation - UCC Article III (negotiable instruments) requires that any change of numbers or letters on the note discharges the maker's obligation.  The imposition of an adjustable interest rate, a late fee, a mortgage insurance premium which enters a loss reserve fund, in practical effect change the numbers on the note.  By signing the morttage the borrower changes letters on the note by waiving notice of assignment of beneficial interest in the note and by waiving presentment and notice of dishonor in the event of default.  These should discharge the obligation for they constitute sneaky, underhanded devises to cheat the borrower out of important rights.  Note that the typical loan note refers to the mortgage but does not grant to the mortgage any right to modify the note's terms.

As in the  principal case, the courts holding against non-inclusion of provisions of a  mortgage simultaneously executed with a note do so largely on the theoretical  grounds that the two instruments are separate and independent legal entities,  each designed to fulfill a particular role in the overall financing transaction.'  The note is intended as evidence of a personal obligation and the manner of  payment, while the mortgage is to serve as a security device in specific  property.6 Under this viewpoint each instrument is to stand by itself, andconsequently the provisions in the mortgage are viewed as being applicable  only for the recovery of the debt by foreclosure proceedings against the property. The promissory note is considered to be governed exclusively by its own  terms. The stipulation in the mortgage should be construed as providing a remedy  on the mortgage, and that so far as foreclosure proceedings are concerned, the notes for that purpose are due, but for general purposes, the obligations on the  notes, are to be determined by their own expressed terms. In this way both  contracts can stand and be fully enforced according to the manifest intention of  the parties.   McClelland v. Bishop, 42 Ohio St. 113,  124 (1884). See also, Cafritz Constr. Co. v. Mudrick, 59 F.2d 864 (D.C. Cir. 1932) ; Smith v. Nelson Land & Cattle Co., 212 Fed. 56  (8th Cir. 1914).

Disconnection of note from mortgage - indorsement in blank deprives the mortgagee of power to force a sale of the mortgaged asset in foreclosure.  See the http://www.nytimes.com/2011/01/08/business/08mortgage.html?_r=2&hp.  If the plaintiff files suit while the indorsement remains blank, the plaintiff has no standing and commits fraud on the court because no one knows the identity of the holder in due course.  Typically, the mortgage names MERS as the mortgagee and the note names some other party as owning beneficial interest.  Unless the HIDC provides a contract of agency to the mortgagee, neither can lawfully force a sale of the realty to discharge the note.  The mortgage suffered no injury by non-payment, and the mortgage does not bear the HIDC's name.

Security fraud and Trover - It seems difficult to get courts to grasp the fact that the note belongs only to the maker, a reality that gave rise to language like "holder in due course", "holder", and "assignment of rights/benefial interest" instead of "owner" and "sale" in the USC Article III.  Unless the maker conferred ownership explicitly, the make still owns it and for that reason has the right to demand return of the note upon satisfaction.  Once judges come to grips with this, they will have to entertain actions in trover to compensate for unauthorized conversion of the note maker's chattel, the note, to personal use through securitization.  All profits the trust, trustee, and associates earned from sale of mortgage-backed security certificates rightfully belong only to the note maker. in the same proportion as the value of the note to the overall pool of notes.  On top of this, the borrower's due diligence should prove that the trustee added the borrower's note to the trust after the REMIC cutoff date, in violation of tax laws.  The trust association (which functions like a limited liability company, not like a trust) hold the note, assigned in blank, so as to make it easy to retract the note in the event of default, assign it to a bank willing to litigate, and fill in the name of the assignee then.

RESPA violation through mortgage insurance - Paragraph 10 of the mortgage shows that the lender can cancel any mortgage insurance and put the borrower's premium payment in a loss reserve fund.  If the lender does this, it increases the cost of the loan and that does not show up on on the HUD-1 report.  It also changes the amounts on the note, indirectly, effectively discharging the borrower's obligation.

Industry fraud - read http://fcic.gov's Financial Crisis Inquiry Report, then provide its summary to the court as proof of the collusion between government and the banking, lending, and securities industry to collapse realty values and steal homeowner equity through lending policies they knew or should have known would cause that result.  This alone should justify a cram-down - lowering the loan balance to the existing value (based on forced foreclosure sales of comparable properties), less paid-in equity, financed over 30 years at 3%.

If you want to prove any of the above, contact Storm Bradford, 703-622-5191, pay him $1500, and he'll prove the provable items and prepare you a report with elements to use in your pleadings.  He'll even train your bumbling attorney as needed to prevail in your case.  If you have curiosity about what a good fraud examiner like Storm can find, look at the award attorneys Causey and Bourdas obtained for their client in an appraisal fraud case over a $200,000 house and $144,000 loan.

Quicken Loans on losing end of $3 million predatory lending verdict

A Quiet Title action gives you the venue to air the above issues and getting the court to order removal of the servicer and everyone else from the deed.  Naturally, you will serve the attorney of record.  The foreclosure mill cannot handle the litigation for the reasons at the top of this message.  You move for default judgment if the attorney of record does not answer the complaint within 30 days. The court should grant title to the borrower, clear of any defect or claim by the lender.

Bob Hurt        My Blog 2460 Persian Drive #70 Clearwater, FL 33763 Email; Call: (727) 669-5511 Law Studies: Donate   Subscribe Learn to Litigate with Jurisdictionary

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For we wrestle not against flesh and blood, but against principalities, against powers, against the rulers of the darkness of this world, against spiritual wickedness in high places. Eph. 6:12
"In memory of our God, our faith, and freedom, and of our spouses, our children, and our peace."

Posted via email from cash-gifts-gifting-generosity's posterous

12 Warning Signs of U.S. Hyperinflation

One of the most frequently asked questions we receive at the National Inflation Association (NIA) is what warning signs will there be when hyperinflation is imminent. In our opinion, the majority of the warning signs that hyperinflation is imminent are already here today, but most Americans are failing to properly recognize them. NIA believes that there is a serious risk of hyperinflation breaking out as soon as the second half of this calendar year and that hyperinflation is almost guaranteed to occur by the end of this decade.   In our estimation, the most likely time frame for a full-fledged outbreak of hyperinflation is between the years 2013 and 2015. Americans who wait until 2013 to prepare, will most likely see the majority of their purchasing power wiped out. It is essential that all Americans begin preparing for hyperinflation immediately.   Here are NIA's top 12 warning signs that hyperinflation is about to occur:   1) The Federal Reserve is Buying 70% of U.S. Treasuries. The Federal Reserve has been buying 70% of all new U.S. treasury debt. Up until this year, the U.S. has been successful at exporting most of its inflation to the rest of the world, which is hoarding huge amounts of U.S. dollar reserves due to the U.S. dollar's status as the world's reserve currency. In recent months, foreign central bank purchases of U.S. treasuries have declined from 50% down to 30%, and Federal Reserve purchases have increased from 10% up to 70%. This means U.S. government deficit spending is now directly leading to U.S. inflation that will destroy the standard of living for all Americans.

 

2) The Private Sector Has Stopped Purchasing U.S. Treasuries. The U.S. private sector was previously a buyer of 30% of U.S. government bonds sold. Today, the U.S. private sector has stopped buying U.S. treasuries and is dumping government debt. The Pimco Total Return Fund was recently the single largest private sector owner of U.S. government bonds, but has just reduced its U.S. treasury holdings down to zero. Although during the financial panic of 2008, investors purchased government bonds as a safe haven, during all future panics we believe precious metals will be the new safe haven.

 

3) China Moving Away from U.S. Dollar as Reserve Currency. The U.S. dollar became the world's reserve currency because it was backed by gold and the U.S. had the world's largest manufacturing base. Today, the U.S. dollar is no longer backed by gold and China has the world's largest manufacturing base. There is no reason for the world to continue to transact products and commodities in U.S. dollars, when most of everything the world consumes is now produced in China. China has been taking steps to position the yuan to be the world's new reserve currency.

 

The People's Bank of China stated earlier this month, in a story that went largely unreported by the mainstream media, that it would respond to overseas demand for the yuan to be used as a reserve currency and allow the yuan to flow back into China more easily. China hopes to allow all exporters and importers to settle their cross border transactions in yuan by the end of 2011, as part of their plan to increase the yuan's international role. NIA believes if China really wants to become the world's next superpower and see to it that the U.S. simultaneously becomes the world's next Zimbabwe, all China needs to do is use their $1.15 trillion in U.S. dollar reserves to accumulate gold and use that gold to back the yuan.

 

4) Japan to Begin Dumping U.S. Treasuries. Japan is the second largest holder of U.S. treasury securities with $885.9 billion in U.S. dollar reserves. Although China has reduced their U.S. treasury holdings for three straight months, Japan has increased their U.S. treasury holdings seven months in a row. Japan is the country that has been the most consistent at buying our debt for the past year, but that is about the change. Japan is likely going to have to spend $300 billion over the next year to rebuild parts of their country that were destroyed by the recent earthquake, tsunami, and nuclear disaster, and NIA believes their U.S. dollar reserves will be the most likely source of this funding. This will come at the worst possible time for the U.S., which needs Japan to increase their purchases of U.S. treasuries in order to fund our record budget deficits.

 

5) The Fed Funds Rate Remains Near Zero. The Federal Reserve has held the Fed Funds Rate at 0.00-0.25% since December 16th, 2008, a period of over 27 months. This is unprecedented and NIA believes the world is now flooded with excess liquidity of U.S. dollars.

 

When the nuclear reactors in Japan began overheating two weeks ago after their cooling systems failed due to a lack of electricity, TEPCO was forced to open relief valves to release radioactive steam into the air in order to avoid an explosion. The U.S. stock market is currently acting as a relief valve for all of the excess liquidity of U.S. dollars. The U.S. economy for all intents and purposes should currently be in a massive and extremely steep recession, but because of the Fed's money printing, stock prices are rising because people don't know what else to do with their dollars.

 

NIA believes gold, and especially silver, are much better hedges against inflation than U.S. equities, which is why for the past couple of years we have been predicting large declines in both the Dow/Gold and Gold/Silver ratios. These two ratios have been in free fall exactly like NIA projected.

 

The Dow/Gold ratio is the single most important chart all investors need to closely follow, but way too few actually do. The Dow Jones Industrial Average (DJIA) itself is meaningless because it averages together the dollar based movements of 30 U.S. stocks. With just the DJIA, it is impossible to determine whether stocks are rising due to improving fundamentals and real growing investor demand, or if prices are rising simply because the money supply is expanding.

 

The Dow/Gold ratio illustrates the cyclical nature of the battle between paper assets like stocks and real hard assets like gold. The Dow/Gold ratio trends upward when an economy sees real economic growth and begins to trend downward when the growth phase ends and everybody becomes concerned about preserving wealth. With interest rates at 0%, the U.S. economy is on life support and wealth preservation is the focus of most investors. NIA believes the Dow/Gold ratio will decline to 1 before the hyperinflationary crisis is over and until the Dow/Gold ratio does decline to 1, investors should keep buying precious metals.

 

6) Year-Over-Year CPI Growth Has Increased 92% in Three Months. In November of 2010, the Bureau of Labor and Statistics (BLS)'s consumer price index (CPI) grew by 1.1% over November of 2009. In February of 2011, the BLS's CPI grew by 2.11% over February of 2010, above the Fed's informal inflation target of 1.5% to 2%. An increase in year-over-year CPI growth from 1.1% in November of last year to 2.11% in February of this year means that the CPI's growth rate increased by approximately 92% over a period of just three months. Imagine if the year-over-year CPI growth rate continues to increase by 92% every three months. In 9 to 12 months from now we could be looking at a price inflation rate of over 15%. Even if the BLS manages to artificially hold the CPI down around 5% or 6%, NIA believes the real rate of price inflation will still rise into the double-digits within the next year.

 

7) Mainstream Media Denying Fed's Target Passed. You would think that year-over-year CPI growth rising from 1.1% to 2.11% over a period of three months for an increase of 92% would generate a lot of media attention, especially considering that it has now surpassed the Fed's informal inflation target of 1.5% to 2%. Instead of acknowledging that inflation is beginning to spiral out of control and encouraging Americans to prepare for hyperinflation like NIA has been doing for years, the media decided to conveniently change the way it defines the Fed's informal target.

 

The media is now claiming that the Fed's informal inflation target of 1.5% to 2% is based off of year-over-year changes in the BLS's core-CPI figures. Core-CPI, as most of you already know, is a meaningless number that excludes food and energy prices. Its sole purpose is to be used to mislead the public in situations like this. We guarantee that if core-CPI had just surpassed 2% and the normal CPI was still below 2%, the media would be focusing on the normal CPI number, claiming that it remains below the Fed's target and therefore inflation is low and not a problem.

 

The fact of the matter is, food and energy are the two most important things Americans need to live and survive. If the BLS was going to exclude something from the CPI, you would think they would exclude goods that Americans don't consume on a daily basis. The BLS claims food and energy prices are excluded because they are most volatile. However, by excluding food and energy, core-CPI numbers are primarily driven by rents. Considering that we just came out of the largest Real Estate bubble in world history, there is a glut of homes available to rent on the market. NIA has been saying for years that being a landlord will be the worst business to be in during hyperinflation, because it will be impossible for landlords to increase rents at the same rate as overall price inflation. Food and energy prices will always increase at a much faster rate than rents.

 

8) Record U.S. Budget Deficit in February of $222.5 Billion. The U.S. government just reported a record budget deficit for the month of February of $222.5 billion. February's budget deficit was more than the entire fiscal year of 2007. In fact, February's deficit on an annualized basis was $2.67 trillion. NIA believes this is just a preview of future annual budget deficits, and we will see annual budget deficits surpass $2.67 trillion within the next several years.

 

9) High Budget Deficit as Percentage of Expenditures. The projected U.S. budget deficit for fiscal year 2011 of $1.645 trillion is 43% of total projected government expenditures in 2011 of $3.819 trillion. That is almost exactly the same level of Brazil's budget deficit as a percentage of expenditures right before they experienced hyperinflation in 1993 and it is higher than Bolivia's budget deficit as a percentage of expenditures right before they experienced hyperinflation in 1985. The only way a country can survive with such a large deficit as a percentage of expenditures and not have hyperinflation, is if foreigners are lending enough money to pay for the bulk of their deficit spending. Hyperinflation broke out in Brazil and Bolivia when foreigners stopped lending and central banks began monetizing the bulk of their deficit spending, and that is exactly what is taking place today in the U.S.

 

10) Obama Lies About Foreign Policy. President Obama campaigned as an anti-war President who would get our troops out of Iraq. NIA believes that many Libertarian voters actually voted for Obama in 2008 over John McCain because they felt Obama was more likely to end our wars that are adding greatly to our budget deficits and making the U.S. a lot less safe as a result. Obama may have reduced troop levels in Iraq, but he increased troops levels in Afghanistan, and is now sending troops into Libya for no reason.

 

The U.S. is now beginning to occupy Libya, when Libya didn't do anything to the U.S. and they are no threat to the U.S. Obama has increased our overall overseas troop levels since becoming President and the U.S. is now spending $1 trillion annually on military expenses, which includes the costs to maintain over 700 military bases in 135 countries around the world. There is no way that we can continue on with our overseas military presence without seeing hyperinflation.

 

11) Obama Changes Definition of Balanced Budget. In the White House's budget projections for the next 10 years, they don't project that the U.S. will ever come close to achieving a real balanced budget. In fact, after projecting declining budget deficits up until the year 2015 (NIA believes we are unlikely to see any major dip in our budget deficits due to rising interest payments on our national debt), the White House projects our budget deficits to begin increasing again up until the year 2021. Obama recently signed an executive order to create the "National Commission on Fiscal Responsibility and Reform", with a mission to "propose recommendations designed to balance the budget, excluding interest payments on the debt, by 2015". Obama is redefining a balanced budget to exclude interest payments on our national debt, because he knows interest payments are about to explode and it will be impossible to truly balance the budget.

 

12) U.S. Faces Largest Ever Interest Payment Increases. With U.S. inflation beginning to spiral out of control, NIA believes it is 100% guaranteed that we will soon see a large spike in long-term bond yields. Not only that, but within the next couple of years, NIA believes the Federal Reserve will be forced to raise the Fed Funds Rate in a last-ditch effort to prevent hyperinflation. When both short and long-term interest rates start to rise, so will the interest payments on our national debt. With the public portion of our national debt now exceeding $10 trillion, we could see interest payments on our debt reach $500 billion within the next year or two, and over $1 trillion somewhere around mid-decade. When interest payments reach $1 trillion, they will likely be around 30% to 40% of government tax receipts, up from interest payments being only 9% of tax receipts today. No country has ever seen interest payments on their debt reach 40% of tax receipts without hyperinflation occurring in the years to come.

 

It is important to spread the word about NIA to as many people as possible, as quickly as possible, if you want America to survive hyperinflation. Please tell everybody you know to become members of NIA for free immediately at: http://inflation.us

Posted via email from cash-gifts-gifting-generosity's posterous

NIA Addresses Latest BLS CPI Inflation Data

NIA Addresses Latest BLS CPI Inflation Data

The U.S. Bureau of Labor Statistics (BLS) reported their latest consumer price index (CPI) inflation data this past Thursday. According to the BLS, U.S. consumer prices for the month of February 2011 were up 2.11% on a year-over-year basis compared with February 2010.

February's year-over-year increase of 2.11% was up 29% from January's year-over-year increase of 1.63% and is now above the Federal Reserve's informal inflation target of 1.5% to 2%.

Even the manipulated BLS numbers are showing that price inflation is beginning to spiral out of control, yet the mainstream media is doing everything possible to downplay inflation. Despite the BLS's reported rate of price inflation rising above the Fed's target, the media is ignoring this and referring to "core CPI", which excludes food and energy (the two very things Americans need the most to live and survive). The media is focusing on the core CPI number, which was up 1.09% from a year ago compared to a year-over-year increase of 0.95% in January (even the growth of this meaningless number is rapidly rising), and saying that inflation remains below the Fed's target.

On a month-to-month basis, the CPI rose 0.5% in February. This was based off of a 2.2% monthly increase in unadjusted gasoline prices. The U.S. government's own Department of Energy (DOE) reported gasoline prices up 3.7% last month (which NIA considers to be a lot more reliable). Based on a 3.7% increase in gasoline prices like the DOE reported, the month-to-month increase in the CPI was actually 0.6%.

NIA believes that real year-over-year price inflation in the U.S. is now approximately 6% on a conservative basis. NIA predicts that even the BLS's artificially low manipulated CPI will rise above 3% on a year-over-year basis by the early summer.

In November of 2010, the CPI was only up 1.1% on a year-over-year basis. At 2.11% in the month of February, the CPI's year-over-year growth has risen by 92% over a period of just three months. In percentage terms, it is shocking just how fast CPI increases are rapidly accelerating. Yet, not one person in the mainstream media is pointing to this 92% figure, which NIA considers to be the most important (it is probably the most accurate piece of data that we can possibly derive from the BLS's CPI reporting).

The media continues to say inflation is low and not a problem. At the current rate of 92% in quarterly (three month) increases to year-over-year CPI growth, the CPI's year-over-year increases could exceed 4.05% by May, but NIA is being conservative with its projection of 3% in official reported year-over-year CPI growth to be reached by June of 2011. By then, NIA believes real price inflation will be around 7%. In our opinion, real U.S. price inflation is likely to rise into the double-digits in the second half of 2011.

It is important to spread the word about NIA to as many people as possible, as quickly as possible, if you want America to survive hyperinflation. Please tell everybody you know to become members of NIA for free immediately at: http://inflation.us

Posted via email from cash-gifts-gifting-generosity's posterous

Tsunami of Inflation to Hit U.S. with Japan Crisis

The earthquake, tsunami, and nuclear disaster that hit Japan this past week and the destruction that it caused is nothing compared to the tsunami of inflation that will soon hit the U.S. as a result of this crisis. A tsunami of inflation in the U.S. will mean a complete collapse of our monetary system, which could lead to millions of deaths due to a lack of food and heat. 44 million Americans are now dependent on food stamps, but when the U.S. dollar becomes worthless as a result of hyperinflation, the government will no longer have the power to support these Americans and many of them will simply starve to death.   Japan's citizens were smart enough to save up $885.9 billion in U.S. treasuries to spend in a situation like it finds itself in today. The U.S. has no such savings and is the world's largest debtor nation. Our ability to survive depends on our ability to print money that has purchasing power. The only reason the U.S. dollar still has purchasing power is the dollar's status as the world's reserve currency.   All Japan has to do is sell their U.S. treasuries and they will have the financial resources necessary to rebuild the parts of their country that were destroyed by this past week's disaster. However, U.S. Treasury Secretary Timothy Geithner said on Tuesday that he doesn't think Japan will unload their $885.9 billion in U.S. treasuries. It remains to be seen if Japan will do the right thing and sell their U.S. treasuries or if they will make the mistake of continuing to artificially prop up the U.S. economy.   The Central Bank of Japan (BOJ) in recent days has already been repeating many of the same mistakes the Federal Reserve made in the U.S. After this past week's disaster, the BOJ printed hundreds of billions of dollars worth of yen in an attempt to prop up their financial markets. Japan's central bank should be raising interest rates, which would encourage its citizens to increase their savings so that they have more resources to rebuild their country and invest into the production of clean energy. By printing trillions of yen out of thin air, the BOJ will cause prices to rise for the very building materials the Japanese need to purchase in order to rebuild.   Although the yen has been rising in recent days, it would be strengthening a lot more if it wasn't for the BOJ's actions. In fact, NIA believes that while the yen may continue to rise in the short-term, the yen is now likely to lose a substantial amount of its purchasing power over the long-term. Instead of allowing the yen to strengthen so that it is cheaper for the Japanese in import copper, iron, steel, oil, natural gas, and other commodities needed to rebuild, the BOJ's actions are actually hurting the Japanese and having the effect of propping up the U.S. economy in the short-term.   The mainstream media frequently talks about Japan's national debt and how it is 225% of their GDP. However, Japan owes most of their national debt to themselves. We have a much worse national debt crisis here in the U.S., where we owe half of our debt to foreigners. Not only that, but once you include America's unfunded liabilities for Social Security, Medicare, and Medicaid, along with its debts for Fannie Mae and Freddie Mac (which are now government backed entities), total U.S. debt obligations now exceed $76 trillion.   The Japanese economy reached peak consumer spending in 1990 and entered their "Lost Decade" of deflation with a balanced budget, high savings rate of 15%, low unemployment rate of 2%, and a net debt to GDP ratio of less than 20%. The average American peaks in spending at age 46 and the last babyboomer just turned 46 in 2010. This means the U.S. economy just passed peak consumer spending, similar to Japan in 1990. Instead of entering this decade from a position of strength, the U.S. has entered it with a real budget deficit of $4.3 trillion, a savings rate of only 4%, a real unemployment rate of 22%, and total debt obligations that are 5 times higher than GDP. We won't be so lucky to escape this decade with deflation, but will instead be faced with hyperinflation as the world loses confidence in the U.S. dollar and rushes to dump their dollar-denominated assets.   When Japan comes to their senses and realizes just how dire the fiscal situation is in the U.S., they will realize that they are much better off investing into their own economy and abandoning the U.S. economy. Just the fact that Geithner is now saying that he doesn't expect Japan to dump their U.S. treasuries, illustrates just how nervous the U.S. government is about the U.S. dollar and how devastating it would be for all Americans if the Japanese did dump their treasuries. No amount of tax increases and spending decreases will ever allow the U.S. to balance its budget. All the U.S. government can do is talk up a strong U.S. dollar, because they have absolutely no real way to keep it propped up.   All NIA members know that Geithner is perhaps the biggest liar in the U.S. government today. Geithner has long said that the U.S. will not monetize its debt, yet the Federal Reserve is now the buyer of 70% of U.S. treasuries being sold. Foreign central bank purchases of U.S. treasuries have fallen from 50% down to 30%. The days of the U.S. exporting its inflation to the rest of the world are now over.   The U.S. just reported a record budget deficit last month of $222.5 billion, a bigger deficit than the entire year of 2007. Up until today, the U.S. has been paying off its debts plus interest by selling larger amounts of U.S. treasuries to new buyers. This is effectively a ponzi scheme, although the U.S. government will never admit it. Even if Japan doesn't sell the U.S. treasuries they already own, that won't be enough for the U.S. to keep this ponzi scheme going. The U.S. needs Japan to keep buying U.S. treasuries, but not only that, they need Japan to buy larger amounts of U.S. treasuries than ever before. The odds of Japan increasing their U.S. treasury purchases during this time of crisis are close to zero, they simply don't have the financial means to do so.  

If Japan doesn't step up its U.S. treasury purchases, who will pick up the slack, China? Geithner infuriated China last year by calling them currency manipulators and since then, China has been rapidly expanding the yuan's use in cross border transactions and is now setting up the yuan to be the world's next reserve currency. NIA believes China is likely to stop buying U.S. treasuries, and will instead loan money to Japan to help in their rebuilding efforts.

 

It is unbelievable just how many of the economists featured by the mainstream media are calling the disaster in Japan a "stimulus" for not only the Japanese economy, but also the U.S. economy. When a country is forced to rebuild an asset that it already had, it is not stimulating the economy, but is spending resources that could have went towards increasing the production of goods and services. When Japan is eventually finished rebuilding the parts of the country that were devastated this past week, the country isn't going to be better off than they were before the crisis. They will likely be even more deeply in debt, with less foreign currency reserves, and a much larger money supply. The Nikkei will likely be a lot higher than it is today due to inflation, but the yen will be worth a lot less and the Japanese will be far less wealthy as a result.

 

America has nothing to benefit from Japan's rebuilding efforts. Most of the commodities that Japan will import as part of their rebuilding efforts will likely come from Australia, China, and even Canada, with very little of it coming from the U.S. All of the fear and uncertainty in the world today is not going to cause another rush into the U.S. dollar like there was in 2008. When the world dumps risky assets in uncertain situations, the U.S. dollar is going to become one of the risky assets that it dumps. With all of the world's central banks now fixated on printing money in order to "solve" any short-term economic problems, gold and silver will be the new beneficiaries of all safe haven buying during times of crisis. Don't let yesterday's dip in gold and silver fool you. Precious metals were due for a dip and would have sold off no matter what. Now is the time to load up with precious metals before the Federal Reserve begins dropping hints of QE3.

 

It is important to spread the word about NIA to as many people as possible, as quickly as possible, if you want America to survive hyperinflation. Please tell everybody you know to become members of NIA for free immediately at: http://inflation.us

Posted via email from cash-gifts-gifting-generosity's posterous

Farm Food Voices DC 2011 Updates

Farm Food Voices DC 2011 Updates

 

Scheduled meetings with legislators so far:

 

NEW JERSEY

9:00 a.m., Office of Senator Robert Menendez

Hart Senate Office Building, Room 528

 

MARYLAND
9:30 a.m., Office of Senator Ben Cardin
Hart Senate Office Building Rm 509 

1:00 p.m., Office of Senator Barbara Mikulski

Hart Senate Office Building, Room 503

 

MASSACHUSETTS
11:00 a.m., Office of Senator Scott Brown
Russell Senate Office Building, Room 317

NORTH CAROLINA
11:30 a.m., Office of Senator Richard Burr

Russell Senate Office Building, Room 217

2:45 p.m., Office of Congresswoman  Renee Ellmers

Longworth House Office Building, Room 1533 

 

PENNSYLVANIA

11:30 a.m., Office of Congressman Bill Shuster

Cannon House Office Building, Room 204

2:30 p.m., Office of Senator Robert Casey

Russell Senate Office Building, Room 393

 

SOUTH CAROLINA

3:00 p.m., Office of Senator Jim DeMint

Russell Senate Office Building, Room 167

 

VIRGINIA

11:30 a.m., Office of Senator Jim Webb (with Warner staff aides also)

Russell Senate Office Building, Room 248

NOTE: Combined meeting with Senators Webb and Warner's staff aides.

2:30 p.m., Office of Congressman Morgan Griffith

Longworth House Office Building Room 1108

3:00 p.m., Office of Congressman Bobby Scott

Longworth House Office Building, Room 1201

5:30 p.m., Congressman Frank Wolf

Cannon House Office Building, Room 241

NOTE: This meeting is with Congressman Wolf.

 

If you are from one of these states, please join the scheduled meetings.  If you have scheduled other meetings, PLEASE EMAIL US IMMEDIATELY.  If you are from other states, please plan to visit your legislators and speak with an aide.

 

Talking Points

 

Previous Talking Points focused on pending legislation like the recently passed "Food Safety Modernization Act," but there is no current legislation we are active on. This year our message is simple: 

• Food choice is our right. It is not a "safety issue," it is a right.  Like breathing.

Armed raids by enforcement agents since 2004 against farms and buying clubs have shown the FDA's intent to target farm produced foods, raw milk and cheese in particular, as a "health risk," according to an FDA memo, and eliminate their production and distribution.

• This list of raids gives a brief overview of most of the raids since 2004 (we update it as needed).

When you speak with aides or legislators, speak from your heart.  Make it personal. Explain why it is important to you to be there and meet with them.  That it is your right to buy, or produce, the food you choose, not what they choose for you.   

THE NATIONAL EMERGENCY:  We would like to begin to introduce legislators to the ongoing national emergency that most people are unaware of, but that is the legal basis of regulations on direct trade between farmer and consumer.  Briefly, in 1933, in response to the dire economics of the time, Congress declared a state of emergency and gave the President, not themselves, the authority to end it.  The emergency suspended the Constitution and empowered the Executive branch to regulate the operation of private enterprise, which the federal government cannot legally do under the Constitution. That emergency has never been repealed. It is time for Congress to take back its authority and repeal the emergency. 

This is new information for most people, so if you want to bring this up in your meetings, you can use this brief and tailor it for your state/district.

PLEASE DONATE:  Please donate whatever you can today through PayPal (it takes a few seconds for PayPal to load once you click) or mail a check or money order to:

NICFA

P.O. Box 239

Bowie, MD  20719

 

We are most grateful for any help you can give.  

 

If you are not familiar with Farm Food Voices, visit our FFVDC event site.

 

To volunteer to help with the event please contact

 

Liz Reitzig, NICFA Secretary 

liz.reitzig@verizon.net

301.807.5063

 

Thank you again and see you March 16!

 

Yours for real food freedom,

 

Deborah Stockton, Executive Director

National Independent Consumers and Farmers Association (NICFA)

nicfa@earthlink.net

http://www.nicfa.org 

Posted via email from cash-gifts-gifting-generosity's posterous

U.S. Dollar Collapse Could Occur at Any Time

China this morning reported 4.9% price inflation for the month of February, exceeding analyst expectations of 4.8%. With China now mimicking the U.S. Bureau of Labor Statistics and taking steps to artificially manipulate their consumer price index (CPI) numbers as low as possible, it is likely that real price inflation in China is now closer to 10%. China was at least smart enough to raise interest rates last month by 25 basis points to 6.06%, while the Federal Reserve continues to leave interest rates near zero with there being absolutely no talk of the Federal Reserve ever raising interest rates again. China will be successful at containing inflation, as U.S. inflation spirals out of control and becomes the greatest economic crisis in American history.   China this week reported a $7.3 billion trade deficit for the month of February, its largest trade deficit in seven years, which surprised many global economists. NIA believes China's trade deficit is temporary and that China will quickly return to having a trade surplus. The Federal Reserve's QE2 along with China's destructive monetary policies, which artificially devalue the yuan, have led to a massive rise in China's raw material costs this year. NIA believes that in the upcoming months, Chinese manufacturers will raise the prices of their products that get exported to the U.S., to counteract rising commodity prices. With most products used by Americans today having been manufactured in China, this will mean Americans will soon see massive price inflation in just about all consumer goods they use. NIA projects that by the end of 2011, we will begin to see the U.S. CPI increase by 4.9% or higher on a year-over-year basis, with real U.S. price inflation rising north of 10%.   The mainstream media is proclaiming that China's trade deficit will silence calls for the Chinese to allow their currency to strengthen against the U.S. dollar. The fact is, China's government has for long been making the major mistake of printing too many yuan in order to artificially prop up the U.S. dollar. Their fear was, if the U.S. dollar was allowed to decline too rapidly, prices of Chinese goods would rise in terms of U.S. dollars and Americans would no longer afford to import them.   The truth is, if China allowed the yuan to strengthen, the Chinese would have enjoyed a much higher standard of living. Sure, prices would rise in dollars and Americans would import less, but the Chinese would have the ability to consume more of their own products. Now, as a result of China expanding its own money supply in order to keep the yuan pegged to the U.S. dollar, Americans will be forced to pay a much higher price for Chinese goods anyway. The same higher prices Americans were going to pay as a result of exchange rate appreciation, Americans will now pay as a result of inflation. For the Chinese, the exchange rate appreciation route would have been a much better route to take than the inflation route, because now the Chinese will also be forced to pay higher prices. In the very short-term, China might actually suffer more than the U.S. because they lack the social safety nets that have been implemented here in America.   The U.S. government has been successful at temporarily paying off Americans into not rioting in the streets like in Arab nations. It was just announced a few days ago that the number of Americans on food stamps in the month of December of 2010 was a record 44,082,324, up 13.1% from one year earlier and 1.1% from one month earlier. That is more than 14% of the total U.S. population! Combined with President Obama extending unemployment benefits up to 99 weeks, American citizens are too busy and distracted playing with their iPad 2s and gossiping on Twitter about Charlie Sheen, to have any time to protest in Washington, DC.   NIA believes the U.S. government's entitlement spending is currently having the unintended consequence of making Americans dependent on government. It is like when you take wild animals into captivity and you feed them, teach them to do tricks and take care of them for a period of many years; if you just dump them one day back into the wild, it will be very difficult for them to survive. Americans who have become dependent on unemployment checks and food stamps will likely soon abruptly find out that they must begin to fend for themselves without any help from the government. The result will be many Americans turning into wild animals and becoming so desperate that they will have to rob and burglarize their fellow neighbors who were smart enough to prepare, or else they will risk starving to death.   As a result of QE2, the Federal Reserve is now buying 70% of U.S. treasuries, up from previously only buying 10% of treasury bonds. Foreign central banks are now buying just 30% of U.S. treasuries, compared to previously buying 50% of treasury bonds. The U.S. budget deficit in the month of February reached a record $222.5 billion or $2.67 trillion on an annualized basis. With the Federal Reserve now monetizing our debt in full swing, a complete and total loss of confidence in the U.S. dollar could be imminent.   Just like how nobody in the mainstream media was calling for the collapse of Egypt's government a few months ago, almost nobody in the media believes a collapse of the U.S. dollar could possibly take place anytime soon. NIA members are educated enough to see that the writing is on the wall. The Federal Reserve can deny all it wants that the U.S. is experiencing inflation, but with the cost to print a single U.S. dollar paper note rising by 50% since 2008, massive inflation is here right under Federal Reserve Chairman Ben Bernanke's nose. Every day that goes by, China is quietly implementing more and more steps that expand the yuan's use in cross border trade, in order to position the yuan as the world's next reserve currency.   So few Americans are presently preparing for hyperinflation that if hyperinflation broke out today, approximately 90% of Americans won't have the means to put food on the table or put fuel in their automobiles. During the upcoming hyperinflationary crisis, food stamps will no longer have any value at all and all U.S. entitlement programs will come to a complete halt. Americans will take to the streets like the world has never seen before.   The biggest question NIA has today is, will the U.S. government resort to firing at its own citizens, if major riots take place in Washington, DC. On Thursday, police in Saudi Arabia shot and wounded three protesters. The price of oil rose by a few dollars per barrel as soon as this news hit the wire, which shows just how nervous the world's financial markets have become in recent weeks. The fact that the Dow Jones has declined significantly in recent days, in our opinion means that the odds of QE3 being launched as soon as QE2 is over, are now much higher than they were several weeks ago.  

The other big question NIA has today is, if in the unlikely event there is no QE3, who will fill in for the artificial buying demand currently coming from the Federal Reserve. After all, with no QE3, the Federal Reserve will go from buying 70% of treasury bonds to being a seller of U.S. treasuries. NIA is 100% sure that foreign central banks aren't itching to jump back in to fill the hole. While in the past, the private sector may have picked up the slack, we believe individual investors will now be more reluctant to jump into government bonds, especially with bond king Bill Gross reducing the government bond holdings in his Pimco Total Return Fund down to zero. The bottom line is, no QE3 means interest rates will fly sky high and destroy the phony so-called "economic recovery".

 

From April to August of 2010, the last time the Federal Reserve allowed its balance sheet to shrink, the Dow Jones fell by over 1,000 points. If Bernanke doesn't soon begin to leak out the strong likelihood of QE3, we could see the stock market decline by 1,000 points or more, which will force Bernanke into launching QE3. If we see a major sell off in stocks, NIA doesn't necessarily think that precious metals prices will follow. In fact, we could see gold and silver rise along with the Dow Jones falling. NIA projects the Dow Jones to gold ratio to decline to 6.5 in 2011. This means even if the Dow Jones fell to below 11,000, we still believe gold is likely to rise to around $1,600 to $1,700 per ounce this year, with silver soaring to around $42 to $44 per ounce. NIA believes the worst decision any American can make is to sell their gold and silver and go long U.S. dollars, hoping to buy their precious metals back at a lower price in the future.

 

It is important to spread the word about NIA to as many people as possible, as quickly as possible, if you want America to survive hyperinflation. Please tell everybody you know to become members of NIA for free immediately at: http://inflation.us

Posted via email from cash-gifts-gifting-generosity's posterous

Media Misleading Americans About Inflation - MASS MEDIA FRAUD!

Media Misleading Americans About Inflation

 

The National Inflation Association (NIA) believes that every time the mainstream media focuses its attention on the weak Euro, it is trying to trick the world into going long the U.S. dollar, when the U.S. dollar will win its race with the Euro to zero. Not only were eurozone countries first to implement austerity measures (something the U.S. is still showing no signs of even considering), but it was just announced this weak that the European Central Bank (ECB), which just left interest rates unchanged this month at 1%, plans to raise interest rates next month in order to combat food and energy price inflation. NIA has been warning its members for two years that the policies of the Federal Reserve and ECB would lead to massive inflation in the prices of food, energy, and clothing, and that is exactly what we are beginning to see right now.

 

The ECB just dramatically raised its inflation expectations for 2011. The ECB has a sole mandate of price stability, but the Federal Reserve's mandate is not only price stability, but also maximum employment and moderate long-term interest rates. Printing money does not create jobs, except for temporary government jobs that act as a burden on the rest of the economy. Federal Reserve Chairman Ben Bernanke has been obsessing over the fact that the U.S. doesn't have any wage inflation, as a reason not to raise interest rates. As NIA has long been predicting for years, wages will be last to rise during the current inflationary crisis. If wages in the U.S. were rising at the same rate as energy, food, and clothing, price inflation wouldn't be a problem at all. The fact that wages aren't keeping up with rising prices should actually be a good reason to raise interest rates immediately.

 

China is so disturbed by the inflation being created by both the Federal Reserve and ECB, that they are looking to abandon both currencies and position the yuan as the next reserve currency. The biggest news of this past week, which conveniently got swept under the rug by the U.S. mainstream media, was news out of China that they will be allowing trades to settle in yuan instead of the U.S. dollar. China is simply responding to overseas demand from those who don't wish to hold on to large amounts of U.S. dollar reserves that are rapidly being debased by the Federal Reserve. By the end of 2011, Chinese exporters and importers will be able to settle cross border transactions in their own currency, instead of U.S. dollars. China is working to rapidly grow the yuan's role in international trade and NIA believes it will soon become the world's new reserve currency by default.

 

The fact is, if the Chinese abandoned the U.S. dollar, China would immediately have the world's largest economy as a result of the yuan strengthening in value. Over 70% of U.S. GDP is consumer spending and when Americans can no longer import cheap goods from China using money we borrow from them, consumer spending will fall off a cliff. Canada and other resource rich nations have nothing to worry about. Just as one small example, the U.S. for many years has been the largest importer of lumber from Canada. Shockingly, the U.S. share of lumber imports from Canada has fallen just about in half percentage wise in recent years from 70% to 36%. Now, it is expected that China will displace the U.S. as the largest importer of lumber from Canada by 2012.

 

Besides Canada, NIA has long said that one of our favorite places to emigrate to is Australia, because Australia's central bank was the first to raise interest rates. The Reserve Bank of Australia has interest rates at 4.75% compared to Australia's inflation rate of 2.7%. The Reserve Bank of Australia is the only major central bank with interest rates that are positive in real terms. Despite having the highest interest rate out of all major developed countries, Australia's GDP is still growing 2.7% on an annual basis.

 

The U.S. GDP is only growing due to artificially low interest rates of 0%-0.25%, where the Federal Reserve has held them for over two years. Artificially low interest rates of 0%-0.25% basically means that the U.S. economy is on life support. Any kind of economic growth during this period is phony and only due to inflation. Australia has a truly healthy economy, being that it is growing with modest interest rates. If the Federal Reserve raised interest rates to a modest level of 4.75% like Australia, there would immediately be a massive wave of debt defaults that sends the U.S. economy into a tailspin. We would experience a crash much worse than the Great Depression, which will likely be so bad that the median priced U.S. home will fall in half from $158,800 down to only $79,400.

 

Silver just reached a new 31-year high on Friday of $35.32 per ounce up 103% since NIA declared silver the best investment for the next decade on December 11th, 2009, at  $17.40 per ounce. The short squeeze in silver that NIA first predicted on April 3rd, 2010, in its article entitled "Silver Short Squeeze Could Be Imminent", is now taking place as we speak. NIA was one of the first to connect the dots and expose to the world why the Federal Reserve was so eager to orchestrate a bailout of Bear Stearns, but didn't mind allowing Lehman Brothers to fail. Bear Stearns was the holder of a massive naked silver short position in silver that was being used to artificially hold silver prices down. As part of JP Morgan's takeover of Bear Stearns, the Federal Reserve guaranteed to cover certain losses that would arise from the Bear Stearns portfolio, and this most likely included the silver short position.

 

Unfortunately, the average American family still has the bulk of their savings invested in Real Estate, when it should be invested in silver. In NIA's first ever documentary 'Hyperinflation Nation', in which we urged viewers to get out of Real Estate and invest into silver, the median U.S. home to silver ratio was 14,700. In NIA's second major documentary 'The Dollar Bubble', we once again discussed the median U.S. home to silver ratio, which was now down to 9,900, and predicted a further major decline. The median U.S. home to silver ratio is now down to 4,500. This means U.S. Real Estate has lost 69% of its value priced in silver in just the past 21 months alone. NIA is 100% sure that this ratio will decline to below 1,000 this decade and probably bottom around 500. Therefore, even if the Federal Reserve keeps interest rates near zero, we are still looking at another 78%-89% decline in the price of Real Estate in terms of silver.

 

NIA has been warning the Federal Reserve to raise interest rates almost since the time they lowered them down to near zero. The longer they keep interest rates where they are now, the higher interest rates will need to rise later this decade to counteract the damage being done today. It is shocking to us how the financial mainstream media still uses the bond market to determine inflation expectations. Comparing U.S. treasury yields to Treasury Inflation Protected Securities (TIPS) yields does not accurately determine inflation expectations. TIPS are a scam, because they are based on the U.S. Bureau of Labor Statistics (BLS)'s Consumer Price Index (CPI), which the government does everything in its power to manipulate as low as possible in order to keep payment increases to Social Security recipients as low as possible. The bond bubble is the largest bubble in world history and during bubbles in the financial markets, assets always get mispriced.

 

NIA doesn't understand how the mainstream media allows Bernanke to get away with testifying in front of Congress this week, "the recent rise in commodity prices will lead to, at most, a temporary and relatively modest increase in U.S. consumer price inflation" and that rising gas prices "do not yet pose a significant risk either to the recovery or to the maintenance of overall stable inflation". NIA is one of the few organizations out there challenging Bernanke's belief that we have "overall stable inflation". We know this to be the exact opposite of the truth.

 

The new Apple iPad 2 being released this month is going to be 33% thinner than the original iPad, but it will be sold at the same price as the first version. NIA forecasts that the BLS will use hedonics to say that the iPad 2 is now 33% better than the first iPad, being that it is thinner. With the price being the same as the old thicker version, the BLS will consider the new version to be 33% cheaper once quality adjustments are factored in. This type of deception will help cancel out food and energy price inflation when the BLS reports the CPI in the upcoming months.

 

We are sure that the millions of sheep in America who will wait for ten hours across a dozen city blocks to be the first to purchase the new iPad 2 will agree with Bernanke that inflation in the U.S. is overall very stable. However, for the overwhelming majority of Americans who see food and gas prices spiraling out of control, they have nobody to thank more than Bernanke. NIA will not rest until we educate as much of the world as possible to the fact that inflation is the root of all evil.

 

It is important to spread the word about NIA to as many people as possible, as quickly as possible, if you want America to survive hyperinflation. Please tell everybody you know to become members of NIA for free immediately at: http://inflation.us

Posted via email from cash-gifts-gifting-generosity's posterous