|
|
My
forecast has been for a powerful Inflationary Recession to occur, a
consistently laid out analysis, delivered during the last year or more in
clear terms. That has been my call, and continues to be my call. The
Deflationist camp is making more noises. They do not know their limitations,
which are obstructed by a blind eye toward the monetary inflation. They do
not understand it, so they ignore it, and attempt to encapsulate it into a
convenient bottle set aside on the margin. Gonzalo Lira will be proved wrong
about price inflation showing on the official Consumer Price Inflation index.
So what? The prevailing price inflation will ramp past 12% easily as he also
predicts. His style is wonderful, even if a mirror is a fixture at his desk.
His details in argument are strong and cogent. An anger meter is a fixture at
my desk. So what? A patch firmly placed over one eye is a fixture for Rick
Ackerman. In truly remarkable fashion, he seems incapable to realize that the
US Federal Reserve has been the mammoth fountain of money to produce price
inflation. His challenge is shallow in my view, since almost $3 trillion has
been spewed into the financial system so far by the USFed,
with more to come. In fact, since the
emergency G-7 Meeting held two weeks ago, the central banks have joined
forces in a Global QE movement that will propel the Gold & Silver price
much higher and render deep further damage to the USDollar.
The Deflationists paid no notice, or did not notice, or did not comprehend
the importance. They are a laughing stock crew of half blind shamans.
USFED MOUTHPIECE ECHOS
The
Deflationists fail consistently to measure the flow or pace of inflation,
seeming mouthpieces without realization for the USFed
and Wall Street itself, whose incessant calls of dreaded deflation have
opened the political floodgate for global monetary hyper-inflation. They do
not even recognize their compromised subservient support role. The aberrant crowd of Deflationists have
a blind eye to the dynamics of inflation, and how it transforms from
excessive funds in the financial system, to reaction against the USDollar, to rising commodity prices, to rising cost
structure, and finally to extreme pressures for end product prices, including
higher wages. They dismiss each step of the way, and do not bother to
explain their progressive errors along the pathogenesis pathway. The USFed has passively developed followers like a Pied
Piper. They are just lousy economists in the Deflationist camp. A good
technical analyst on chart interpretation in no way makes for economist
qualification. They cannot integrate complex systems where both asset
deflation and monetary inflation coincide, collide, and conspire to produce
economic wreckage and price inflation. They act sheepish when what they predict
will not happen, actually comes to pass. Recall they have been preaching for
three years that crude oil and gold would descend lower in prices. They serve
as the bell tower in an empty village. They have also been preaching that end
product prices would fall also due to low final demand. They are consistently
wrong, but never apologetic. Sadly, most Deflationists cannot adequate even
define deflation, even when challenged. It is a catch-word they fixate upon,
that permits them to dismiss anything and everything pertaining to the
ravaging complex effects of monetary inflation, whose dynamics are beyond
their scope of comprehension, perhaps even recognition.
Mine
are not rants, but detailed arguments with numerous factors fortifying
arguments put forth toward a thesis defended on many fronts in broad fashion
for over five years. To be sure, my
work includes some invective due to overflowing anger at the system having
gone so far awry with deep fraud, coordinated media deception, impunity for
those responsible, and elevated powers granted to
them during reforms. Rants are shallow harangues. Mine is thorough
analysis put to paper. These guys should consult a dictionary, as some of
their own haughty dismissals fail to address or respond to
much of anything my work has put forth. The word rant might invite an
accusation of shallow in the mental process. They often argue in a circle under the pretense of confrontation,
never addressing important points like the flow of the increased monetary
aggregate, and its destinations with strong effects. One analyst in
particular should really stick to what he does best, that being technical
chart analysis. While the historical economics books of the past are indeed
enlightening in theory, little truly applies to explain all that occurs in
the profound intervention and rigged financial markets led by a criminal
elite class whose main enterprise is clearly war and narcotics, followed by
orchestrated chaos designed to permit broad elite powers. Their past
excellent work should be kept on the wall for constant reminder of true
market forces, true economic forces, all of which are opposed by powerful
criminal actions and heavy handed monetary policy.
THE BLIND EYE TO INFLATION
My
main ongoing criticism of the Deflation camp has been their blind eye to the
human response to asset deflation. Obvious home prices fell and continue to
fall, and related asset backed bonds have fallen progressively into ruin.
That is not the point. Their camp has consistently ignored the central bank
response with multi-$trillion monetary expansion. In round #1, the excesses
were tucked away in the Federal Reserve interest bearing account for the big
banks. They were essentially Loan Loss Reserves of those banks, which were
removed from the big bank balance sheets only to be relocated on the USFed books. In round #2, the excesses went global with
the entire commodity complex exploding upward in price. Purchase of USTreasury Bonds in the hundreds of $billions cannot be
contained anymore than herding tiger cats. Most noticeable among commodity
price rises was in food & energy. With most food items up 15% to 20% in
price in a single year, and gasoline up 25% in several months, the pinch is
on with powerful price inflation. But it appears on the cost side, as my
analysis has mentioned numerous times. What
the Deflationists miss from the start is that the extreme storm conditions
come from the falling asset prices and wage effects on the one side to
form a low pressure zone, meeting the rising monetary expansion and
counter reaction by commodity prices against the debased USDollar
in a high pressure zone. Thus the collision and powerful storm
vortex, which they miss with blind eyes. Their camp
never addresses the storm conditions, ever. The Deflationists show their
blind eye by overlooking, or ignoring, or never noticing the storm itself,
where natural collapse meets extraordinary monetary aggregate growth in
reaction. They never mention multi-$trillion central bank expansion of the
money supply, which debases the value of money, even making a total mockery
of money, thereby adding to the cost structure in a massive way, pressuring
prices and
Jim Willie CB is a statistical analyst in marketing research and retail forecasting. He holds a PhD in Statistics. His career has stretched over 24 years. He aspires to thrive in the financial editor world, unencumbered by the limitations of economic credentials. Visit his free website to find articles from topflight authors at www.GoldenJackass.com .
Similar articles you might enjoy :
Jim Willie, you are The King!
| Top articles |
  MOST READ |
|
|
|