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>My Candid View – Part 1 - FOFOA - FoFOA
There is one salient fact missed by the author that makes his talk of hyperinflation in America seem extremely far fetched and it is that never in the entire history of the world has there ever been hyperinflation in a core economy with a functioning bond market. Never. Not even once....As for the assertion that the government does not even have it on its radar, i believe he is quite mistaken. It is well understood by them that a functioning bond market is essential to their own well being and i would bet on it that they have already began to study the possibility of requiring pension funds to buy Treasuries. But even if they have yet to produce their first position paper on the matter, previous templates already exist that could easily be dusted off....Another problem with the analysis presented here is that while the Fed does control the quantity of new money creation, it is powerless to do anything about the velocity with which it moves through the economy and it is the velocity of money and not its quantity that produces inflation. As we have seen, the Fed has been working overtime creating the stuff, but it sure has not been working its way into the economy with any sense of alacrity.....Rather than hyperinflation coming to America, we should expect new and higher taxes coupled with increasingly aggressive collection methods. You did not really believe the NSA was building that facility out in Utah to go after terrorists, did you? The assholes need the terrorists to justify their own existence. If they cared a whit about terrorists, the Boston bombers, who communicated by cell phone and were reported on by the Russian authorities, would never have gotten to do their thing. The creation of the super surveillance state is all about going after money, plain and simple. We are to be bled dry. As Martin Armstrong has wryly noted: "You will beg for hyperinflation."

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Beginning of the headline :"Importing more than you export means lots of empty containers. That visual manifestation of our trade deficit is what drivers see as they pass the Port of New York and New Jersey on the New Jersey Turnpike. In the first eight months of 2010, the port saw the equivalent of 700,000 more full 20-foot containers enter than leave. 45% of containers exported from port operator APM Terminals’ Port Elizabeth facility (part of the Port of New York and New Jersey) are empty, a reflection of the trade i... Read More
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