muses of the moment

April 15, 2011

John Williams update on the real inflation rate

Filed under: Gold and Silver Investing, Inflation, Precious metals — totallygroovygirlfriday @ 4:25 pm

John Williams with has released his latest summary. You pay for the detail, but this is the punchline:

– Real Monthly Retail Sales Fell by 0.2% in March
– Fed’s Dollar Debasement Has Boosted Quarterly CPI Inflation to More than 5%
– March Year-to-Year Consumer Inflation: 2.7% (CPI-U), 3.0% (CPI-W), 10.2% (SGS)

Yes, ladies and gentlemen, you read that last part correctly. If inflation was calculated as it was before Clinton took office, as it was from the beginning of economic time in the US, it would be 10.2%.

When the government doesn’t like the stats, they change the formula used to calculate the stat. Looks good on paper, but doesn’t fool main street for too long. You see, they can add. It is not your imagination, you are paying more to live than you were last year, 10.2% more.

Did you get a 10% raise at your place of employment? GG didn’t. Did your social security check go up 10%? Didn’t think so…..

Are you earning over a 10% return on your savings and investments? Groovygirl is, she owns physical gold and silver with a combined 30% return on investment last year.

More detailed info from John Williams via Jesse’s Cafe Amercain, click here.

Today in gold and silver

Filed under: Gold and Silver Investing, Precious metals — totallygroovygirlfriday @ 12:27 pm

Gold and silver continue upward, reaching new highs without any acknowledgment from main stream media. Oil, after a quick dip to $105 per barrel this week, is back up to $108 and rising. Back to the new normal, inflation in prices.

Update later in the day:

Today’s high in gold….$1489.30

Today’s high in silver….$43.05

Yes Men stick it to GE

Filed under: Odds 'n ends — totallygroovygirlfriday @ 7:34 am

The Yes Men strike again. This time faking GE. Click here.

It is groovgirl’s humble opinion that GE deserves some major pranking since they paid basically no taxes AND got a bailout from the government (that’s you, taxpayers) that no one ever talks about.

Bob Janjuah gives an update on the markets

Click here….via

From the linked post:

Our view is that over H2 2011, under the hard landing scenario things will get a lot worse. It seems to us that very large amounts of debt and money printing are being used to “buy” a recovery which itself has no real legs (in particular as EM – the BICs – are forced to slow because of their domestic inflation, thus stopping dead the global manufacturing super-cycle which is the only real source of strong growth in the US). And once QE2 stops and other such stimuli are also turned off (fiscal boosts have already had their day, in our view) we think the emperor?s new clothes will be revealed for what they are.

And this:

In summary, the key driver of market returns right now and since early 2009 has been the Fed and its “intentional” mispricing of the true CoC through QE, but we think the Fed is fast approaching the limits of its credibility. We think the Fed is asking investors:

  1. to lever up at the wrong price;
  2. to take on risk at the wrong price; and
  3. to do this at precisely the wrong time in the business cycle.

For this to succeed, the Fed needs to convince investors it can keep the QE-fed Ponzi growing forever, permanently misprice the true CoC without any negative or unintended consequences. The US housing market seems quite clearly to be rejecting this proposition, but the equity market in particular has not. History shows no successful precedent, so under the hard landing path, when the CoC and pricing of risk normalise, as we would fully expect them to, asset prices, especially equities, should be hit very hard.

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