$100 Oil/Currency War
We may soon see $100 oil based on the decline of the Dollar. Global commodities are pushing up prices in terms of U.S. Dollars. Bernanke and his cohorts want to see inflation but the rest of us have been experiencing inflation in our everyday lives. See: http://www.bloomberg.com/news/2010-10-15/opec-members-seek-100-a-barrel-oil-as-sliding-dollar-cuts-real-revenue.html The US desperately needs a cheaper currency, but so do other countries. There is a race to the bottom and gold & silver will reap the benefits. The average person will be the loser due to the depreciation of savings.
No increase for Social Security Recipients
Once again, the “cooked” statistics have slapped our seniors in the face. The measurement of inflation has been diluted by non-essential products and services that it has indicated to us there was no inflation over the last 12 months. I wonder what country they live in? We received notice of an increase in our health insurance premium, just like clockwork. SGS places September’s consumer inflation level at 8.5% which is certainly a more realistic number. See http://www.shadowstats.com If the government used these numbers, the increase in Social Security would cause the agency to run out of money sooner than currently projected. How can our seniors survive on the same check as last year? What little savings they have, they receive virtually no interest. There came a famine in the land!
Looming Energy Crisis
Within 48 months, I project the energy crisis revelation will go mainstream. At that point, the gas guzzlers will become worthless. We are hoping to have a Prius in the garage by the end of the month. Once the mainstream media figures out the global production has peaked and in decline, fuel efficient cars will be in short supply and the discounts will evaporate. Am I willing to give up roominess for geographic flexibility? Yes. I expect higher prices or a deeper recession. Either way, we are reducing our relative energy expense and exposure.
Banks’ Impact
To add insult to injury, the banks are pleading for mercy in their mortgage-backed security crisis. The problem is that someone is going to lose wealth at the end of the day. Will it be the banks, the pension funds and other investors, and/or the US taxpayers? The music has stopped and the party is over. I expect we will be hearing cries to Heaven before long. We’re in a multi-front crisis.