muses of the moment

August 1, 2014

John Williams with

Filed under: Inflation, John Williams shadowstats — Tags: — totallygroovygirlfriday @ 7:45 am

Once again, John Williams with gives us the real stats. Here is his free summary:

No. 646: Second-Quarter 2014 GDP, GDP Benchmark Revisions, Household Income

• Second-Quarter GDP Surge Not Credible, Significant Downside Revisions Remain in Offing
• Actual Economic Activity Remains in Serious Trouble
• Historical GDP Revised Lower Where Better Data Were Available and Revised Higher Where Better Numbers Were Not

I am sure we will have a “revision” after the November elections for 2nd and 3rd quarter GDP.

March 27, 2014

Repeat after groovygirl…

Filed under: Fiat Currency, Inflation — totallygroovygirlfriday @ 6:45 am

“There is no inflation. There is no inflation.”

Click here for a very telling chart from The Burning Platform. But if you have been paying bills for the last 14 years, you already knew this 🙂

The really bad news for the rest of the world is that their currencies are tied to the USdollar, and the dollar has deflated against those global currencies. The rest of the world’s inflation is much worse than ours. Might be a reason for all those “revolutions” and “riots” and negative sentiment toward the US.

March 20, 2014

John Williams with

Filed under: Inflation, John Williams shadowstats — Tags: — totallygroovygirlfriday @ 2:27 pm

Here is the free summary from John Williams:

Strongest Recession Signal Since Eve of the Economic Collapse
– Real Retail Sales on Track for 4% Annualized Plunge in First-Quarter 2014
– Housing Starts on Track for 34% Annualized Plunge in First-Quarter 2014
– For Second Month, Unadjusted Monthly 0.4% CPI Inflation Was Squashed to 0.1% by Seasonal Adjustments
– February Annual Inflation: 1.1% (CPI-U), 1.0% (CPI-W), 8.8% (ShadowStats)
Real Earnings Down 0.2% in February

December 18, 2013

John Williams from

Filed under: Inflation, John Williams shadowstats — Tags: — totallygroovygirlfriday @ 9:54 am

John Williams from has the real stats.

Here is a free summary:

– Year-to-Year Inflation Rose in November, Despite Weak Monthly Numbers
– November Annual Inflation: 1.2% (CPI-U), 1.1% (CPI-W), 8.8% (ShadowStats)
– Real Retail Sales Gained 0.6% in November; Recession Signal Remained Intact
Consumers Constrained by Real-Earnings Issues

December 2, 2013

Another new currency

Filed under: Dollar Crisis, Fiat Currency, Inflation, The Dollar Crisis, The Financial Crisis — totallygroovygirlfriday @ 8:30 am

Click here for an article about a new regional currency in the Middle East (Bahrain, Kuwait, Qatar and Saudi Arabia). It will be pegged to the Dollar and not an internationally traded currency.

Groovygirl suspects that this is an attempt to control national inflation levels caused by the USDollar to prevent or control rebellions in that area. Nothing like high food prices to spark a revolution….

Could be that they are setting this regional currency up now, getting people used to it, and will change the peg as necessary in the future.

The take-away here is that everyone is trying to protect themselves from the eventual destruction of the USDollar.

September 18, 2013

John Williams from

Filed under: Inflation, John Williams shadowstats — Tags: — totallygroovygirlfriday @ 11:01 am

Two summaries:

– Production Activity Remained Consistent with Renewed Economic Downturn
– Neither Banking-System nor Economic Developments Suggest Fed “Tapering,”
But Heavily-Managed Market Expectations Indicate Near-Term Action

– Liquidity Constraints Impair Consumption, Prevent Recovery
– Poverty Report Confirmed Falling Household Income
– Year-to-Year “Core” CPI Inflation in Upswing
– August Annual Inflation: 1.5% (CPI-U), 1.5% (CPI-W), 9.2% (ShadowStats)

August 6, 2013

It’s not all about the fiat currency…

Many people point to the Fed’s take over of currency-issuance in 1913 for the decline in the standard of living. This, of course, is a concern. But we have been through 3 economic depressions: two deflationary and one inflationary in the last 100 years. It is a slow erosion.

There are some other reasons for the place families find themselves in today: set up for failure.

Click here for 40 Percent of US Workers Make Less Than What a Full-time Minimum Wage Worker Made in 1968. This state of current US Workers is directly related to deflation of purchasing power of fiat currency and the movement of US jobs oversee without a plan (especially in the higher education industry) to create a new industry to replace medium wage (middle class) jobs.

First of all, thanks to our very foolish politicians American workers have been merged into a global labor pool where they must directly compete for jobs with workers on the other side of the planet that live in countries where it is legal to pay slave labor wages.  This has resulted in millions upon millions of good jobs leaving this country.

Click here for Trying To Stay Sane in An Insane World Part 2. There are several excellent economic charts in the link. But one of the best is the consumer credit chart. Total consumer credit in 1968 was under $2 billion dollars, it is now over $2,800 billion dollars. This is how people are keeping up with the decrease in purchasing power of the US dollar and the decreasing availability and decreasing of wages of middle-America jobs. The most current segment of society to use credit to live, a result of the recent surge on the chart, is the college student.

Debt steals two things from the debt-slave: current spending freedom and future spending freedom:

Must have higher monthly income streams to service (old and new) debt interest payments. You might need to stay in a job you hate, move to an area you don’t like, get into a field that you have no passion for. Recessions, unemployment, and depressions force people down for the count instead of allowing them to just dial back spending for a while. This is a big difference in the long-term health of the economy and health of society.

Debt is not just debt, but negative savings: compound interest makes use that your purchase on credit is at least 2 and a half times the original cost if it is not paid off right away. With payday loans it can turn into 1000% the original cost very fast. Your money is going to interest instead of savings for future needs, like emergency funds, retirement, new car, unemployment savings reserves, down payment on a house, college education, etc.

Debt keeps people trapped long-term. This is the birth of the debt-slave, chained to a cubicle.

Side musing: it is ironic that everyone is talking about taxes (government wants more, people want less). When if people didn’t spend half their paycheck on debt service, they wouldn’t be so upset about current or higher future taxes. Government policies created their own demise.

So what can you do about this? Well, you can’t do much about jobs moving overseas and you can’t do much about the Fed, but…. you do have power.

Pay down current debt and do not acquire more debt. Will it be easy and quick, nope. Will it bring you and your family more freedom, yes!

From the link above:

The citizens, formerly known as the hard working American middle class, must accept their share of responsibility for the desperate circumstances we face. Some are guiltier than others, but we only need look in the mirror to find the culprits in allowing the bankers, politicians, military industrial complex, mass media and vested corporate interests to gain control over our country. The introduction of the credit card by Wall Street bankers as a must have for every citizen in the early 1970s coincided with the inflationary demons unleashed from Pandora’s Box by Nixon and the Federal Reserve, along with the peak of cheap U.S. oil production. Thus began four decades of real wages declining and consumer debt soaring. A nation of people that believed in saving before purchasing were given the freedom to spend money they didn’t have. The statistics paint a picture of a society gone mad:

  • Credit card debt grew from $5 billion in 1971 to $856 billion today, a 17,000% increase in forty-two years. GDP rose from $1.2 trillion to $16.6 trillion, a mere 1,400% increase. Real GDP only grew by 300%. Wages have grown from $600 billion to $7 trillion, a 1,200% increase. Real disposable personal income per capita grew from $17,200 to $36,800, a 200% increase.

  • Non-revolving debt (auto, student loan) grew from $127 billion in 1971 to $1.98 trillion today, a 1,600% increase.

  • There are over 600 million credit cards in circulation within the U.S. and Americans charged over $2.1 trillion last year.

  • Over 40% of Americans carry a balance on their credit card from month to month, with an average balance of $8,200 and an average interest rate of 13%.

  • 40% of all low and middle income households must rely on their credit cards to pay basic living expenses like rent, mortgage, utilities, groceries, real estate taxes, income taxes, along with their “needed” iPhones, HDTVs, bling, stainless steel appliances, and tattoo artwork.

  • Wall Street banks have written off over $300 billion in credit card debt since 2008 (and passing the bill to taxpayers), while bilking their customers out of $60 billion per year in late fees and overdraft fees.

August 1, 2013

Thunder Road

Click here for a link to the most recent Thunder Road Report. It is about 58 pages. Good charts. This report comes from Europe. This issue focuses on the effect or non-effect of Central Banking actions around the globe. They also have a section on inflationary deflation.

July 17, 2013

Latest from John Williams at

Filed under: Economic Crisis, Inflation, John Williams shadowstats, The Financial Crisis — Tags: — totallygroovygirlfriday @ 8:59 am

You pay for the detail, well worth the money, but here is the punch line:

– Slowing Growth with Rising Inflation
– Real Retail Sales and Real Earnings Contracted in June
– Annualized Quarterly Production Growth Slowed to 0.59% from 4.23%
– June Year-to-Year Inflation: 1.8% (CPI-U), 1.8% (CPI-W), 9.4% (ShadowStats)

June 19, 2013

John Williams with

Filed under: Inflation, John Williams shadowstats — Tags: — totallygroovygirlfriday @ 10:59 am

Latest summary from John Williams with the real stats!

– Fed’s Expanded QE3 Has Monetized 78.4% of the Concurrent Increase in Treasury Debt
– Relationship of Post-2008 Monetary Base Activity to Broad Money Supply
– May Year-to-Year Inflation: 1.4% (CPI-U), 1.2% (CPI-W), 9.0% (ShadowStats)
– Real Retail Sales Still Signal Broad Economic Downturn
– Second-Quarter Housing Starts on Track for Quarterly Plunge

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