The correct answer to the inflation vs. deflation debate...
The answer to whether we have inflation, or deflation,
is the same as it's been for the last 2+ years...
We have both.
Here's an interesting piece that all gold bugs should read,
it's from one of the best & brightest, Institutional Risk
Analytic's Christopher Whalen.
us1.institutionalriskanalytics.com
-- Weekly FDIC bank resolutions show that bank assets are
still overvalued by 25-35%.
-- Writedowns on assets are 3 x what they were in the 1990's.
-- Fiscal cuts are deflationary (Wisconsin today, 46 other
US States tomorrow). And in regards to fiscal cuts, remember
Pollock's First Law: debt which cannot be paid must default
(when, not if).
-- New regulations, via Dodd-Frank and other progressive
pathways, are greatly restricting private credit creation.
-- The Fed and the Obama Administration basically gave away
the store to EU nations in the Basel III negotiating process.
The result is a policy framework that further disadvantages
housing-related assets, eliminates mortgage servicing rights,
and ensures further shrinkage in the available bank balance
sheet for home mortgage finance in America.
The Basel III process reinforces the cartel of large banks
in the US as smaller banks are tossed into the furnace of
FDIC resolutions.
-- Even though the Fed is successfully creating bubbles in
the credit, commodities and financial sectors, the
collateral value of US homes is still falling due to a lack
of both buyers and practical financing. The sweet spot for
FHA/FNM/FRE production today is 70% LTV and a FICO north of
700 despite what the news reports suggest.
This means well-more than half of all US homeowners
are not bankable (in an economic model in which consumer
spending represents 70% of GDP).
-- The moral of the story is that efforts to restore consumer
activity and job creation in the US and EU may not be successful
until debt service levels are reduced a la Iceland.
Whalen goes on to quote a commentary on the markets
and the economy written by one of his longtime readers...
"The Russell 2000 is within 2.5% of the highest level it
has "ever" been. The Nasdaq is just 28 points from the
highest level it has been in more than 10 years. Today, the
Treasury announced it will borrow $99 Billion next week which
as usual will be purchased by the Federal Reserve.
It is assumed the Fed will be able to "print" $99 Billion
dollars by next week. It is also assumed that actual 18%
unemployment, record foreclosures in the millions, 800 more
bank failures, 4 in 10 people on food stamps, record deficits
and the largest amount of fiat money printing in the history
of America will continue to be MEANINGLESS to Wall Street. "
The takeaway?
The keyword and concept being - "assumptions."
This recent move in gold and silver has been fueled by
inflationary assumptions regarding Bernanke's QE II,
government spending, and geopolitical instability in the
Middle East.
Be careful about your longterm assumptions.
SOT "V" B
PS: Regarding the global governance coup d'etat by
the multi-nationals and the international bankster-gangsters,
ie:
"McDonald's, 29 other firms get health care coverage waivers."
usatoday.com
"Obama issues global warming rules in January, exempts
GE-powered plant in February."
washingtonexaminer.com
Just in case you thought the exemptions being handed to large
multi-nationals from Obamacare (McDonalds and 29 large
multi-national corporations) and EPA exemptions being given
to insider, crony corporations like MSNBC-Obama TV's GE
are anomalies, please read the article below regarding the
new tax breaks being given the large, multi-national banks
under the guise of "financial reform" in the UK.
Tax havens and loopholes for them, and "hard sacrifices"
and austerity for you...
"New Tax Laws - The Heist Of The Century"
guardian.co.uk
"Under the new proposals, companies will pay nothing at all
in this country on money made by their foreign branches.
Foreign means anywhere. If these proposals go ahead, the UK
will be only the second country in the world to allow money
that has passed through tax havens to remain untaxed when it
gets here.
The other is Switzerland. The exemption applies solely to
"large and medium companies": it is not available for smaller
firms. The government says it expects "large financial services
companies to make the greatest use of the exemption regime".
The main beneficiaries, in other words, will be the banks.
WHODATHUNKIT?!?!
But that's not the end of it. While big business will be exempt
from tax on its foreign branch earnings, it will, amazingly,
still be able to claim the expense of funding its foreign
branches against tax it pays in the UK.
No other country does this. The new measures will, as we
already know, accompany a rapid reduction in the official
rate of corporation tax: from 28% to 24% by 2014. This, a
Treasury minister has boasted, will be the lowest rate
"of any major western economy".
By the time this government is done, we'll be lucky if
the banks and corporations pay anything at all.
In the Sunday Telegraph, David Cameron said:
"What I want is tax revenue from the banks into the exchequer,
so we can help rebuild this economy."
He's doing just the opposite."
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And it's not just in the UK, remember the stories on Goldman
Sach's 1% tax rate and the "offshoring" of it's profits?
Goldman Sachs’s Tax Rate Drops to 1%, or $14 Million
bloomberg.com
Billions in bailouts and record bonuses for them,
and "necessary sacrifices" and austerity for you.
And it's not just Goldman, remember Exxon?
Exxon over the last few years has earned more money than
any corporation in the history of mankind.
Curious as to what tax rate they paid?
How about "0" in 2009...
"GE, Exxon Paid No U.S. Income Taxes in '09"
abcnews.go.com
"The most egregious example is General Electric. Last year
the conglomerate generated $10.3 billion in pretax income,
but ended up owing nothing to Uncle Sam. In fact, it recorded
a tax benefit of $1.1 billion.
Avoiding taxes is nothing new for General Electric. In
2008 its effective tax rate was 5.3%; in 2007 it was 15%.
The marginal U.S. corporate rate is 35%."
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It's a farce when politicans and corporate CEO's bitch
and whine about US corporate tax rates being so high...
because none of them pay anything near the standard
rates, and many like Goldman, GE, and Exxon pay next
to nothing. All thanks to offshoring their earnings in
tax havens unavailable to small businesses, or you, and
taking advantage of loopholes their lobbyists have
hand-written into the tax code.
And remember the tax holidays given US corporations for
repatriating offshore profits back to the USA?
Watch for another corporate "tax holiday" coming soon,
just as they call for more cuts to Social Security, and
necessary sacrifices from the American people...
bloomberg.com
America's sheeple had better break free from the false
left-right paradigm, and soon. Have you heard Glenn Beck's
latest call for all of us to make "hard sacrifices" for the
good of America?
Beck is calling for anyone under the age of 60, to give
up all claims to Social Security and Medicare, while
encouraging tax cuts for corporations to re-stimulate
the economy.
Funny how Beck didn't have his faithful millions march
on Washington D.C. when Congress was in session and
cramming 2,000 page bills it didn't read down our throats,
(when it would have mattered), but instead had them march
upon Washington D.C. when it didn't?
Carroll Quigley exposed the design of the false, left-
right paradigm better than anyone...
"The argument that the two parties should represent opposed
ideals and policies, one perhaps of the Right, and the other
of the Left, is a foolish idea acceptable only to doctrinaire
and academic thinkers. Instead, the two parties should be
almost identical, so that the American people can 'throw the
rascals out' at any election without leading to any profound
or extensive shifts in policy.... [E]ither party in office
becomes in time corrupt, tired, unenterprising, and
vigorless. Then it should be possible to replace it, every
four years if necessary, by the other party, which will be
none of these things but will still pursue, with new vigor,
approximately the same policies."
Unfortunately, "Tragedy & Hope" is not taught in the schools,
(have you seen the NEA's website - it features Alinsky's Rules
For Radicals" among it's recommended books for teachers).
nea.org
Unfortunately Tragedy and Hope isn't being spoon-fed to the
sheeple in 10-second sound bytes, as it's a 1,000+ page primer
for future CFR members, and bureaucrats being trained by the
globalists.
Try turning of the TV and reading it, then give it to your
kids, friends, familiy, and co-workers.
You can also access it online for free.
scribd.com
Read it. |
