Chart usGOLD   Chart usSILVER  
 
Food for thought
Money is just another name for the most generally accepted means of exchange
Anonymous  
Search for :
LATEST NEWS  :
MINING STOCKS  :
Subscribe
Write Us
Add to Google
Search on Ebay :
PRECIOUS METALS (US $)
Gold 1223.640.24
Silver 18.560.03
Platinum 1346.00-4.80
Palladium 824.30-8.50
WORLD MARKETS
DOWJONES 1715726
NASDAQ 45629
NIKKEI 16052163
ASX 5411-35
CAC 40 443122
DAX 966229
HUI 215-5
XAU 90-2
CURRENCIES (€)
AUS $ 1.4342
CAN $ 1.4160
US $ 1.2867
GBP (£) 0.7909
Sw Fr 1.2108
YEN 139.6670
CURRENCIES ($)
AUS $ 1.1147
CAN $ 1.1005
Euro 0.7772
GBP (£) 0.6148
Sw Fr 0.9411
YEN 108.5450
RATIOS & INDEXES
Gold / Silver65.93
Gold / Oil13.02
Dowjones / Gold14.02
COMMODITIES
Copper 3.14-0.01
WTI Oil 93.95-0.47
Nat. Gas 4.00-0.01
Market Indices
Metal Prices
RSS
Precious Metals
Graph Generator
Statistics by Country
Statistics by Metals
Advertise on 24hGold
Projects on Google Earth
In the same category
Ridiculous Claim: Fed Policy Not To Blame For Rising Food and Gas Prices
Published : May 08th, 2012
794 words - Reading time : 1 - 3 minutes
 
    Comments    
Tweet

 

 

 

 

Government mouthpiece and well known Keynesian economist Paul Krugman makes the case for monetary easing and Fed intervention by claiming that the rising cost of food and gas has nothing to do with the Federal Reserve or the free money they’ve dished out to banks, both foreign and domestic, to the tunes of not billions, but tens of trillions of dollars.

 

The latest economic theory from the Nobel Prize winning economist suggests that the Fed and government intervention couldn’t possibly have anything to do with US dollar depreciation – not for the last hundred years, and certainly not today:

 

Food and gas is not something that’s being driven by Fed policy. Sorry, but Ben Bernanke doesn’t have that much power. That’s being driven by events in China. That’s being driven by events in a large world economy.

 


 

The dollar hasn’t gone down. That’s the amazing thing. If you actually look at the Dollar vs. the Euro, the Dollar vs. the Yen, it has not. In terms of the world’s other major currencies we have not had a big depreciation of the dollar.

 


 

History says that a regime of moderate inflation is better for workers than we’ve got now.

 

Video via The Info Warriors

 

If we weren’t so opinionated, we’d be speechless.

 

We present exhibit no. 1 as the only evidence necessary to prove exactly the opposite of Mr. Krugman’s claims:

 

 

 


 

 

 

The fact of the matter is that since its very inception the Federal Reserve has played the key role in the destruction of our currency with a dollar today being worth just 5% of what it was in 1913.

 

Most notably (and we expect to receive our Nobel Prize for Economics nomination in the mail shortly after publishing this groundbreaking work) the US dollars has depreciated against every single physical commodity on the planet for nearly a hundred years. This can only be possible through one economic policycurrency expansion.

 

The very notion that the US dollar is not depreciating against other currencies, and that this is indicative of a successful monetary policy, is patently ridiculous. The EU, taking the lead from their colleagues in the United States, is printing trillions of Euros to keep the system afloat by slamming it with liquidity. So, in simplistic terms, if we print $10 trillion dollars and the Europeans print the equivalent amount of Euros, we have absolutely no change in our exchange rates, because they both retain the same value against each other as they had before the printing.

 

Where the value of this central bank toilet paper becomes apparent is not in the exchange markets cited by Mr. Krugman as an indicator of a healthy currency, but rather, in the amount of physical goods that government backed currency can buy.

 

Easy money (and the fraud that came with it) is to blame for the doubling (and subsequent halving) of home prices from 2001 through today. So, too, can we blame the Federal Reserve for the rising prices of our food, gas and energy.

 

Does Mr. Krugman actually believe that when you give investment banks around the world tens of trillions of free dollars to invest risk-free into whatever assets they deem appropriate, that they won’t force the prices of these assets through the roof? This is exactly what happened leading up to the 2008 crash, and this is what is happening today. Granted, we have a rise in demand as billions of people in China an India come online in the new global economy, but the majority of the price rises over the last few years have originated from the essentially free money the Fed has given to those specific entitites that actually do have the power to make markets move. By this logic, Mr. Bernanke undeniably has the power to control these prices, as he controls the money supply and the pipelines through which it is distributed.

 

When you consider that Mr. Krugman is a highly respected and influential economist whose ideas have been accepted and implemented by monetary and government officials without contemplation or discussion, then it becomes apparent how serious of a problem we are facing.

 

What’s scary is that we don’t think Mr. Krugman is lying to us when he speaks of these ludicrous theories. He , and those who implement these policies, actually believe them as Gospel, and that is much more dangerous.

 

We suggest that you follow the one investment strategy you need to know to protect yourself against the coming inflation monster and start acquiring physical commodities right now, because these people – these best-and-brightest of our financial and economic world – will not stop until the US dollar, our purchasing power, our retirement savings and our entire way of life are completely wiped out.

 

 

 

 

Thanks to Mac Slavo from www.shtfplan.com
Data and Statistics for these countries : China | India | All
Gold and Silver Prices for these countries : China | India | All
Tweet
Rate :Average note :0 (0 vote)View Top rated
Previous article by
Mac Slavo
All articles by
Mac Slavo
Next article by
Mac Slavo
Receive by mail the latest articles by this author  
Latest comment posted for this article
In September 2009 Krugman's column in the New York Times was lengthy and titled “How did Economist Get it so Wrong”. He very conveniently distanced himself from all those shortsighted economist. He states"As I see it, the economics profession went astr  Read more
billgreenjeans - 5/9/2012 at 5:49 AM GMT
Rating :  1  0
TOP ARTICLES
MOST READ
TOP RATED
MOST COMMENTED
Editor's picks
RSS feed24hGold Mobile
Gold Data CenterGold & Silver Converter
Gold coins on eBaySilver coins on eBay
Technical AnalysisFundamental Analysis

Mac Slavo

Mac Slavo is the editor of ShtfPlan.com
Mac Slavo ArchiveWebsite
Most recent articles by Mac Slavo
9/17/2014
9/15/2014
9/13/2014
9/11/2014
9/9/2014
All Articles
Comment this article
You must be logged in to comment an article8000 characters max.
 
Sign in
User : Password : Login
Sign In Forgot password?
 
 
       
In September 2009 Krugman's column in the New York Times was lengthy and titled “How did Economist Get it so Wrong”. He very conveniently distanced himself from all those shortsighted economist. He states"As I see it, the economics profession went astray because economists, as a group, mistook beauty, clad in impressive-looking mathematics, for truth."
I am not certain but I have a strong feeling that Nobel Laureate Krugman is living in a round room because he can't be cornered on anything. He, of course, has the same problem of most of the western world of putting the blame on someone else and not accepting personal responsibility for his own mistakes. Armed with this knowledge are we to believe anything he states in the future?
My old friend, the doctor, call his problem “a pathological liar”. He is not a normal liar hiding the truth for fear of being found out, but one who contradicts himself in the same paragraph. He does believe what ever he says to be the truth even though it contradicts what he said ten minutes ago. Bill Clinton has this problem. So Mac Salvo, sorry, you have to change and become a pathological liar before you get your Nobel Prize.
Rate :   1  0Rating :   1
EmailPermalink
So house prices have come down and there are more dollars around and therefore people will be able to buy cheap houses.
Thats pretty good...think of all the bunkers one can hide ,polish their guns and eat beans in.

I also note that gold and particularly silver are in a short to medium DOWNTREND.
And as for all the experts on KWN,how wrong have they been getting it for the past year?
Rate :   2  0Rating :   2
EmailPermalink
Receive 24hGold's Daily Market Briefing in your inbox. Go here to subscribe or unsubscribe.
Disclaimer