Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Gold & Silver Begin New Advancing Cycle Phase - 6th May 21
Vaccine Economic Boom and Bust - 6th May 21
USDX, Gold Miners: The Lion and the Jackals - 6th May 21
What If You Turn Off Your PC During Windows Update? Stuck on Automatic Repair Nightmare! - 6th May 21
4 Insurance Policies You Should Consider Buying - 6th May 21
Fed Taper Smoke and Mirrors - 5th May 21
Global Economic Recovery 2021 and the Dark Legacies of Smoot-Hawley - 5th May 21
Utility Stocks Continue To Rally – Sending A Warning Signal Yet? - 5th May 21
ROIMAX Trading Platform Review - 5th May 21
Gas and Electricity Price Trends so far in 2021 for the United Kingdom - 5th May 21
Crypto Bubble Mania Free Money GPU Mining With NiceHash Continues... - 4th May 21
Stock Market SPX Short-term Correction - 4th May 21
Gold & Silver Wait Their Turn to Ride the Inflationary Wave - 4th May 21
Gold Can’t Wait to Fall – Even Without USDX’s Help - 4th May 21
Stock Market Investor Psychology: Here are 2 Rare Traits Now on Display - 4th May 21
Sheffield Peoples Referendum May 6th Local Elections 2021 - Vote for Committee Decision's or Dictatorship - 4th May 21
AlphaLive Brings Out Latest Trading App for Android - 4th May 21
India Covid-19 Apocalypse Heralds Catastrophe for Pakistan & Bangladesh, Covid in Italy August 2019! - 3rd May 21
Why Ryzen PBO Overclock is Better than ALL Core Under Volting - 5950x, 5900x, 5800x, 5600x Despite Benchmarks - 3rd May 21
MMT: Medieval Monetary Theory - 3rd May 21
Magical Flowering Budgies Bird of Paradise Indoor Grape Vine Flying Fun in VR 3D 180 UK - 3rd May 21
Last Chance to GET FREE Money Crypto Mining with Your Desktop PC - 2nd May 21
Will Powell Lull Gold Bulls to Sweet Sleep? - 2nd May 21
Stock Market Enough Consolidation Already! - 2nd May 21
Inflation or Deflation? (Not a silly question…) - 2nd May 21
What Are The Requirements For Applying For A Payday Loan Online? - 2nd May 21
How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part1 - 1st May 21
INDIA COVID APOCALYPSE - 1st May 21
Are Technicals Pointing to New Gold Price Rally? - 1st May 21
US Dollar Index: Subtle Changes, Remarkable Outcomes - 1st May 21
Stock Market Correction Time Window - 30th Apr 21
Stock Market "Fastest Jump Since 2007": How Leveraged Investors are Courting "Doom" - 30th Apr 21
Three Reasons Why Waiting for "Cheaper Silver" Doesn't Make Cents - 30th Apr 21
Want To Invest In US Real Estate Market But Don’t Have The Down Payment? - 30th Apr 21
King Zuckerberg Tech Companies to Set up their own Governments! - 29th Apr 21
Silver Price Enters Acceleration Phase - 29th Apr 21
Financial Stocks Sector Appears Ready To Run Higher - 29th Apr 21
Stock Market Leverage Reaches New All-Time Highs As The Excess Phase Rally Continues - 29th Apr 21
Get Ready for the Fourth U.S. Central Bank - 29th Apr 21
Gold Mining Stock: Were Upswings Just an Exhausting Sprint? - 29th Apr 21
AI Tech Stocks Lead the Bull Market Charge - 28th Apr 21
AMD Ryzen Overclocking Guide - 5900x, 5950x, 5600x PPT, TDC, EDC, How to Best Settings Beyond PBO - 28th Apr 21
Stocks Bear Market / Crash Indicator - 28th Apr 21
No Upsetting the Apple Cart in Stocks or Gold - 28th Apr 21
Is The Covaids Insanity Actually Getting Worse? - 28th Apr 21
Dogecoin to the Moon! The Signs are Everywhere, but few will Heed them - 28th Apr 21
SPX Indicators Flashing Stock Market Caution - 28th Apr 21
Gold Prices – Don’t Get Too Excited - 28th Apr 21
6 Challenges Contract Managers Face When Handling Contractual Agreements - 28th Apr 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

New World Order: Food Price Inflation; House Price Deflation

Economics / Inflation Jan 26, 2011 - 01:14 PM GMT

By: Richard_Daughty

Economics

Best Financial Markets Analysis ArticleYou can tell by my bleary, bloodshot eyes, my rumpled appearance, my musky aromas and my overtly hostile attitude that I have been holed up in the Mogambo Armageddon Bunker (MAB), scared out of my mind about the inflation in prices that is surely going to consume us, thanks to the unholy Federal Reserve creating so incredibly much, so stupendously much, so astoundingly much, So Freaking Much Money (SFMM).


Naturally, as a lunatic-fringe Austrian Business Cycle Theory kind of guy, and one who has also seen the terrifying 4,500-year historical record of fiat currencies, and being an ordinary guy who is also paranoid and scared enough as it is without the added terror of this inflation thing, I am furiously buying gold, silver and guns, the latter item to protect the two former items, which will be so valuable in the collapse that I can buy anything I want, any time I want, anywhere I want, which you have to agree is a really nice way to get through a hyperinflationary collapse!

Of course, it won't be inflation in the prices of all things, but more inflation in things that foreigners want, too (food, energy, pornography), but deflation in things that foreigners do not want (your house, your car, your job).

Since there is no word for that, we turn to George Ure at UrbanSurvival.com, who calls it LifeFlation, and defines it as when, "Things you need - like food - go through the roof. Things you don't need, like a fourth car, an airplane, a motor home, and so on, collapse."

And so with a smug look of self-satisfaction on my face to finally have someone on my side instead of the usual "me against everyone," I now point to the roaring inflation in the cost of food around the world (which people need), as evidenced when Ed Steer's Gold & Silver Daily gleaned that "Food inflation is alive and well in India," which he learned from the Times of India headline "Inflation up to 18.32% on veggie prices", which seems bad enough without continuing on that "Among the individual items, onions became dearer by 82.47 per cent on annual basis, while eggs, meat and fish became costlier by 20.83 per cent, fruits by 19.99 per cent and milk by 19.59 per cent."

This is a dismal list that, thankfully, did not mention any price rises for yummy pizza, or delicious tacos, or any price rises for those crispy little Spring rolls that taste so good with that gooey red sauce, so that is at least something to be thankful for, I guess!

Anyway, contrast this harrowing inflation in the prices of food with actual deflation in assets, as Zillow.com reports that home prices went down for the 53rd month in a row, which is (if my math is correct) more than four years, which is the worst slump since the 25% fall in housing prices during the Great Depression!

And yet the Federal Reserve, which created all the money necessary to finance this insane bubble in housing that has been deflating for 53 months in a row and has caused almost 3 million foreclosure actions in 2010 with 1 million actual foreclosures, is still there, operating business-as-usual! A total, catastrophic failure, and yet the Federal Reserve remains totally untouched!

"Outrage and a call to action" is one thing, but it was just too cold and snowy to consider rising up in open rebellion, marching upon the Federal Reserve as an angry mob, with photogenic flaming torches and pitchforks being brandished in a menacing manner, intent upon casting out an evil and re-installing the gold standard to the USA

So, since I was snowed in, I had a lot of time on my hands to think about, you know, things.

One of them was the realization that this is the year I turn 64, which reminded me of the Beatles tune that had the line "Will you still need me, will you still feed me, when I'm 64?"

For a moment, everything seeming so warm and cozy, and the thought crossed my mind to do some of that touchy-feely "bonding" crap that families "do" these days, based on, as far as I can tell, some whacko academic theorists and self-promoting hucksters I never heard of, based loosely on statistics that actually prove my point: Mean-spirited, hateful children are obviously spawn of the devil who deliberately make their fathers so crazy that the continual familial dysfunction finally results in barely-controlled rage and a secret thirst for revenge. QED, damn it! QED!

I mean, it's always something with kids! Always wanting me to go bankrupt by giving them money, instead of my using all of our money to buy as much gold, silver and oil as we can, as protection against the inevitable roaring inflation in prices that is guaranteed by the Federal Reserve creating so much excess money so that the federal government can borrow it and spend it to sustain an idiotic, bankrupted, suicidally-dysfunctional, cancerous, government-centric economy financed by the triple evils of a massively over-produced fiat currency, insane levels of fractional-reserve banking, and a federal government continually deficit-spending.

And if it is not "the money thing" with these kids, then it is them whining for me to drive them somewhere so that they can visit their stupid friends, or take them to some stupid after-school function, or to the mall, or go to some expensive emergency room complaining of some ailment that probably would have gone away in a few days or weeks by itself anyway, or maybe they would have just gotten used to it after a few months.

I say to them, in my defense, "I mean, consider that our incomes as not going up, but prices are, so something has to give!"

In practical experience, this means that it is no wonder that so few people buy gold and silver, although they know they should, and would if they could, but if they did, they would find it so easy that they would, too, spontaneously shout, "Whee! This investing stuff is easy!"

Richard Daughty (Mogambo Guru) is general partner and COO for Smith Consultant Group, serving the financial and medical communities, and the writer/publisher of the Mogambo Guru economic newsletter, an avocational exercise to better heap disrespect on those who desperately deserve it. The Mogambo Guru is quoted frequently in Barron’s, The Daily Reckoning, and other fine publications.

Copyright © 2011 Daily Reckoning

© 2011 Copyright The Daily Reckoning - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in