The rate of growth of the life and death signal for the health of the economy is out of control.  The Fed is printing money in a madcap, devil may care disregard for your financial well being.  There are indications that the rate of growth of the money supply is growing at 16% a year.  This is ruinous for America and your family.  You are already feeling the pinch of sharply escallating prices, with more to come.  16%  growth in new money is evidence of the bad faith of our government and politicians. The last time it was this high was in the 1970’s, when it was about 14%. 

Begin to take steps to find safe harbors for your money and investments.   And let everyone from the President, the Chairman of the Federal Reserve, your Senators and Congressman that you insist on honest money, and a low rate of inflation and a low rate of increase in the money supply.  You can reach Congress by calling and writing letters.  Tell them to tune into <Inflationblog.wordpress.com/> to get the gory details.

Thank you

“50% of the rise in oil prices this year is attributed to the fall in the U.S. dollar. So until Congress, the White House and the Federal Reserve finally get their act together, I think you can expect to see more of the same.”

 http://www.moneyandmarkets.com

Reports are coming in on a weekly basis of the imprint inflation is making on countries and economies around the world.  We are used to thinking of inflation as a phenomenon of a particular country.  But we are seeing food riots in various countries where inflation is ravaging the food supply.  Commodities like gold, silver, platinum, copper, and of course oil and gas are devastating dozens of countries at the same time.

We have been globalizing the world’s economy for three decades.  It appears that we could be headed into a world-wide inflation hitting most countries at the same time.  Time is not on our side.  This would be the equivalent of the Bubonic plague errupting in every country at the same time.  The longer inflation rages, and the higher it goes, the more difficult it is to quell its ravages. 

If the dollar continues its slide, what currency will rise to take its place?  The simple answer is there is no substitute for the role the dollar has played since the end of World War II.  And world wide inflation will rage until the  proper equalibrium is restored, and proper economic conditions again prevail.  World wide infaltion would be a dark day in human history.

One of the great excuses for governments doing little or nothing about surging inflation is that there is only one tool to dampen it; that is raising interest rates to retard speculative investing.  This deception is used as an excuse for fiddling while Rome burns.

The fact is you can control inflation by slowing down the rate of the growth of the money supply.  Milton Friedman, President Ronald Reagan’s chief economic adviser firmly controlled the money supply, otherwise known as M-1 in the early 1980’s.  He said in 1970 “Inflation is always and everywhere a monetary phenomenon.”   Cheesy politicians use inflation for their personal political plans, which isa source of corruption and speculation to benefit from inflation.  This killer cure is being ignored by the Bush administration, the Fed and  the Congress.

Make no mistake about it, if you make your voice heard, the political pygmies in Washington, D.C. will run for cover.  They want to ignore limiting the growth of the money supply, hoping you won’t notice your savings and net worth going up in the smoke of inflation.

Write and call your Senators and Congressmen today, and demand limiting the growth of the money supply.

Inflation is hitting hard rural areas that are often economically marginal to begin with.  There is relatively less of a financial cushion there than for city/suburb residents.

This is “Where driving is a lifeline, the pain from high fuel prices run deep. . .You have to leave town for about everything. . .Gas has always been exensive around here. . .but (people have) had to alter (their  routine around here). . .(When one small town resident was asked for her opinion, she said, ) “I don’t see any end to be honest. . .I think this courntry is headed into a depression.”

JUDY KEEN,”High gas prices threaten to shut down rural towns,” USA Today, July 2, 2008, p A1

This is a new blog.  We are finally getting readers, but few responses.  If you like what you are reading here, please feel free to comment and critique to accellerate the flow of words and ideas.  Next week we will begin looking into the disaster of hyperinflation as it was experienced in Germany in the 1920’s, and Brazil, Argentina and Bolivia in 70’s and 80’s.

The thought for today is that inflation signals the complete corruption of the political governance of a nation, and theft by those profiting from inflation.  It is not a pretty picture.  Illusions about inflation leads only to disaster.

M

Going back over 35 years politicians of both parties have fudge the statistics that reveal the health/illness of the American economy.  There is a blog site that fills in some improtant blanks, published by John Williams.  Tune into his blog address for lots of interesting insights into the earth shaking realities.

mailto:johnwilliams@shadowstats.com

N.

The Midwest floods are raising the inflationary tide rippling through the nation’s supermarkets and restaurants-and meat prices may soon  start rising along with prices for bread, eggs,  and breakfast cereals.

Economists are again raising their forcasts of how much food prices will climb, and for how long, because heavy rains have washed out millions of acres of prime farmland at a time when soaring demand is draining U.S. grain supplies to low levels. . .(U.S. food prices are set) to climb between 7% and 9% this year.

‘The consumer hasn’t felt it yet on the protein side.  But it is coming,’ said Richard Bond, chief executive and president of Tyson Foods, Inc.

Scott Kilman, “Midwest Floods May Drive Food Prices Even Higher”, Wall Street Journal, June 17, 2009, pA4

“Saudi Arabia has unveiled plans to develope large scale overseas agricultural projects to secure  food supplies, revealing that Riyadh is in discussions with Ukraine, Pakistan, Sudan, Turkey and Egypt. . .(The Saudis are) planning to set up projects of at least 100,00 hectares in several countries to grow crops  such as wheat, corn, rice, soyabeans, alfalfa, a feed for livestock. . .The move, which is also aimed at building up strategic reserves, comes as food prices have doubled over the past two years and a series of trade restrictions by exporting countries have limited the oil-rich kingdom’s ability to secure supplies. . .The massive rise in food prices, particularly wheat and rice,  have caused a number of Arab countries to look to develop schemes in other nations.  Food costs have also been a significant contributor to the double-digit inflation that is causing mounting concern in the Middle East.

Andrew England, “Saudis Plan to Grow Crops Overseas,” Financial Times, June 13, 2008, p 3 

“When the U.S. turns a blind eye to the consequences of diluting the value (of the dollar) its monetary unit, when we abuse the privelege  of supplying the global reserve currency by resorting to sleight-of-hand monetary policy to address our own economic problems-inflating our away out of the housing crisis, pushing taxpayers into higher brackets through stealth-it sends a disturbing messatge to the world.

Why would  the nation that espouses Adam Smith and the wisdom of the invisible hand permit its currency to confound the validity of price signals in the global marketplace?  How can  Americans champion the cause of free trade and exhort other nations to rid themselves of protectionist measures such as tarriffs and subsidies-and then smugly claim that U.S. exports are becoming “more competitive” as the dollar sinks?

Imagine how Americans would feel if we suddenly realized that our most trusted trade partners have been slowly  but inexorably imposing  a tariff against U.S. goods since 2002-a tariff now in excess of 50%. . .How disillusioning to discover that the leading proponents (the U.S.) of open global trade-the ones who insist on a ‘level playing field’-think nothing of adopting policies that render our products overly expensive for their consumers, even as they profer their goods around the world at inordinately discounted prices.”

Judy Shelton, “The Weak-Dollar Threat to World Order,” Wall Street Journal, June 9, 2008, p A17