Tag Archives: Monetary inflation

It’s the Fed, Stupid! By Bill Bonner and Joel Bowman

Oligopolies don’t have printing presses. From Bill Bonner and Joel Bowman at bonnerprivateresearch.com:

Plus, a year of “I told you so’s” and plenty more to come…

Bill Bonner, reckoning today from Normandy, France…

Last year was such a hoot we are reluctant to say goodbye to it. It was one ‘I-told-you-so’ moment after another.

The Fed raised rates…trying to recover from the embarrassment of failing to see the approaching inflation.  The higher rates caused stocks to go down. The biggest losers were those that had just made the biggest gains – especially the big techs and cryptos.

It all happened pretty much as it should have happened. See, ‘I told you so.’

People try to complicate it. Disguise it. They aim to distract your attention from what is right before your eyes. They claim ‘capitalism failed’ or ‘corporate greed’ suddenly imposed itself or, for those with no ax to grind, simply that there were ‘supply chain interruptions.’ Here’s the hopeless Robert Reich, former US Labor Secretary, in The Guardian. He says corporate monopolies are to blame:

Worried about sky-high airline fares and lousy service? That’s largely because airlines have merged from 12 carriers in 1980 to four today.

Concerned about drug prices? A handful of drug companies control the pharmaceutical industry.

Upset about food costs? Four giants now control over 80% of meat processing, 66% of the pork market, and 54% of the poultry market.

Worried about grocery prices? Albertsons bought Safeway and now Kroger is buying Albertsons. Combined, they would control almost 22% of the US grocery market. Add in Walmart, and the three brands would control 70% of the grocery market in 167 cities across the country.

And so on. The evidence of corporate concentration is everywhere.

Put the responsibility where it belongs – on big corporations with power to raise their prices.

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U.S. Double-Speak Will Not Stop Gold’s Imminent Surge, by Egon von Greyerz

You can’t fool all the markets all of the time. From Egon von Greyerz at goldswitzerland.com:

Propaganda, lies and censorship are all part of desperate governments actions as the economy disintegrates.

We are today seeing both news and history being rewritten to suit the woke trends that permeate society at every level, be it covid, the number of genders, the Ukraine war or government finances.

I have in many articles covered the explosion of money printing and debt which is an obvious sign that the global financial system is approaching collapse and default . The consequences will be  far reaching to every corner of the globe and all parts of society.

See my recent article “In The End The Dollar Goes To  Zero And The US Defaults” which outlines the probable course of events in 2023 and afterwards.

Later on in this article, I will look at the consequences in relation to markets and what ordinary people (investors?) can do to prepare themselves.


Every record has been destroyed or falsified, every book rewritten, every picture has been repainted, every statue and street building has been renamed, every date has been altered. And the process is continuing day by day and minute by minute. History has stopped. Nothing exists except an endless present in which the Party is always right.George Orwell, 1984

Let’s just look at government finances. As we are entering the end of an era with deficits and debts running out of control, the truth becomes an inconvenience to governments and must therefore be suppressed or rewritten.

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Until Something Breaks, by Bill Bonner

And assuredly, something will break. From Bill Bonner at bonnerprivateresearch.com:

No magic… no genius… and no common sense


Bill Bonner, reckoning today from Baltimore, Maryland…


Last week came more evidence that inflation is not going away. Today, we explain why. MarketWatch:

In data released Friday, U.S. producer prices rose 0.3% in November versus the 0.2% median forecast from economists polled by The Wall Street Journal. The increase in producer prices over the past 12 months slowed to 7.4% from 8.1% in the prior month, and was down from a 11.7% peak in March.

The report, which came in above expectations, indicated that there’s less moderation in price pressures than analysts had expected for last month.

Foretelling much worse inflation sometime in the future, prices for finished consumer goods actually went up at a 16% rate – the highest in 48 years.

Three Major Busts

But that’s the trouble with a ‘sea of lies;’ it inevitably gets stormy. Ships run aground. 

The Fed gave out the lie that it could manipulate the economy and make us all richer. It claimed to be “smoothing” the economic cycle. No more bubbles. No more busts.

But thanks to the Fed, we’ve seen 3 major bubbles in the last 22 years. And three major busts. We’re still in the 3rd one. 

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Three Strikes, You’re Out! By Bill Bonner

Workers of the world are getting poorer in real terms (purchasing power after inflation) for the first time this century. From Bill Bonner at bonnerprivateresearch.com:

More on the government’s middle class massacre…


Bill Bonner, reckoning today from Baltimore, Maryland…

It looks like the post-Thanksgiving shopping binge was not nearly as successful as hoped. Here’s The Wall Street Journal:

Sales at bricks-and-mortar stores over Thanksgiving weekend fell short of prepandemic levels and were behind last year’s totals, another sign that Black Friday is losing its status as the crucial kickoff to the holiday-shopping season.

“It used to be people would wait in line from midnight for the stores to open at 4 or 5 a.m….”

What happened? 

Hot off the press is a report from the UN’s International Labor Organization. It tells us that for the first time this century, workers of the world are getting poorer:

This year’s ILO Global Wage Report… shows that, for the first time this century, global real wage growth has become negative while real productivity has continued to grow. Indeed, 2022 shows the largest gap recorded since 1999 between real labour productivity growth and real wage growth in high income countries. While the erosion of real wages affects all wage earners, it is having a greater impact on low-income households which spend a higher proportion of their disposable incomes on essential goods and services, the prices of which are increasing faster than those for non-essential items in most countries. 

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In The End The $ Goes To Zero And The US Defaults, by Egon von Greyerz

That’s where this train is headed. From Egon von Greyerz at goldswitzerland.com:

With US and Global debt exploding prior to both assets and debt imploding, let us look at the disastrous consequences for the US and the world.

Debt explosion leading to the currency becoming worthless has happened in history for as long as there has been some form of money whether we talk about 3rd century Rome, 18th century France or 20th century Weimar Republic and many many more.

So here we are again, another monetary era and another guaranteed collapse as von Mises said:

“There is no means of avoiding the final collapse
of a boom brought about by credit expansion”

This disastrous borrowed prosperity, with ZERO ability to repay the surging debt,  will lead to one of the three consequences below:




The most likely outcome is number 3 in my view. The dollar will go to ZERO and the US will default. The same will happen to most countries.

I outline the consequences for the world at the end of his article.

Many people say that the US can never default. That is of course absolute nonsense.

If a country prints worthless debt that nobody will buy in a currency that no one wants to hold, the country has definitely defaulted whatever spin they put on it.

In the next few years, not just US but all sovereign debt will only have one buyer which is the country that issues the debt. And every time a sovereign state buys its own debt, it has to issue more worthless debt that nobody will touch with a barge pole.

Printing more money to pay for previous sins has never worked and never will.

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The Real Solution to the Coming Economic Crisis, by Mark Thornton

We may have to wait for Laissez-Faire until after economic collapse, but after such a collapse, what else can you try? From Mark Thornton at mises.org:

My previous article demonstrated how the free market solves a boom-bust crisis and is the only solution, its effectiveness depending upon the magnitude of the crisis and, more importantly, how much the government intervenes in response. The bigger the problem created by the Fed, the greater the crisis and the more government intervenes, and the slower the economy recovers.

Here we consider how the market works most effectively, with the efficiency of the process maximized by policy restraint. Like most illnesses, recessions can be “cured” with rest, hydration, nutrition, and fresh air, rather than major surgeries and dangerous medications.

The solution begins with getting rid of the initial monetary causes and allowing market participants, especially entrepreneurs, to adjust to the new conditions. Entrepreneurs will reallocate resources according to current consumer preferences and away from the previous policy allocations. There is no easy, straightforward market playbook for an individual entrepreneur to consult. Should a pizza restaurant stay open one hour later or use in-house delivery drivers? The owner could figure it out, but policy makers would have no idea of where to even begin to answer such questions.

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Doug Casey on How Inflation Destroys Civilization… and What You Can Do About It

Inflation is a hidden tax, and as such, it’s a lie by the currency’s issuer. Since monetary value is at the core of a productive economy, and money of no set value robs producers, inflation does indeed destroy civilization. From Doug Casey at internationalman.com:

International Man: According to a recent Newsweek poll, 63% of Americans “strongly support” new government stimulus checks to combat inflation.

In other words, let’s fight the effects of money printing by doing even more money printing.

What’s your take on this?

Doug Casey: The nature of the US has been transformed. Americans have come to see the government as a cornucopia that can kiss everything and make it better—especially since the bailouts of the Biden Administration.

That attitude has become a cultural value and very hard to change. “Panem et circenses,” as the Romans said, has become necessary for both the government and its subjects. Remember that the prime directive of any entity—whether it’s an amoeba, an individual, a corporation, or a government—is to survive. The present government can’t survive without supporting more than half the population, which has become parasites. But the government itself is the biggest parasite of all. Can parasites live on each other forever? No. To use an overly fashionable word, it’s “unsustainable.”

Where will the US government get the money it needs to survive? It can no longer even remotely survive on its tax receipts; deficits of one to two trillion per year lie ahead for the indefinite future. It can no longer borrow adequate amounts from either American citizens or foreign governments—just rolling over the $32 trillion of existing debt, forget about trillions of new debt, at anything near current interest rates is hard enough. So there’s no alternative left for them but to print more money. And print they will (electronically, of course). The thousands of “economists” at the Federal Reserve and the Treasury Department have no more of a grip on sound economics than government economists in Argentina or Zimbabwe.

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The Sordid Politics of Inflation, by MN Gordon

More even than an economic issue, inflation—debasement of the currency—is a moral issue. From MN Gordon at economicprism.com:

Some airlines, if you want six more inches between you and the seat in front, you pay more money but you don’t know it … these are junk fees, they’re unfair and they hit marginalized Americans the hardest, especially … people of color.”

– President Joe Biden, October 26, 2022

Fist Bump Agreements

President Joe Biden just crapped the bed.  Again!

The near octogenarian thought he’d struck a secret deal back in July.

You may have seen Biden’s fist bump with Saudi Crown Prince Mohammed bin Salman at the time.  The non-binding agreement called for increased oil production until at least December, after the midterm elections.

With additional Saudi Arabian oil, in combination with draining the Strategic Petroleum Reserve, now down 32 percent year-to-date, Biden planned to deliver cheap gasoline to American voters.

His calculation was that this gift would prevent a likely midterm catastrophe for the Democrat party.  What a slick political move, right?

Alas, Biden recently woke up – like a pig – rolling around in a mess of his making.

On October 5, the OPEC+ cartel announced it would cut oil production by two million barrels per day starting in November.  Then, this week, Saudi Arabia’s energy chief Prince Abdulaziz bin Salman provided the following warning:

“It is my profound duty to make clear to the world that losing (releasing) emergency stocks may be painful in the months to come.”

In this regard, American taxpayers – including you – will have to pay higher oil prices to fill both the Strategic Petroleum Reserve and their own gas tanks in the months ahead.  How’s that for presidential strategery?

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What’s happening to your money?, by Dr. Vernon Coleman

The currency is being debased even faster, and the government even more tyrannical, in Great Britain than the U.S. From Dr. Vernon Coleman at 2ndsmartestguyintheworld.substack.com:

  • Central banks (including the Bank of England, the European Central Bank, the Federal Reserve) all failed to spot that inflation was coming. Why in the name of everything fiscal do we give money to these incompetent, overpaid buffoons? And why does anyone take any notice of what they say? It wasn’t difficult to see that inflation was coming. (I warned that inflation was coming fast and hard two years ago. I told you it was going into double figures.) Similarly, it was easy to see (and again you could have read it on this website) that interest rates were going up. The days of absurdly low, artificial interest rates are over. They’ve served their purpose – and lined up millions of people for penury, bankruptcy and homelessness. (You’ll find more about inflation in my book Moneypower.)
  • The idiots in governments keep saying that energy prices will fall next year. But they’re either being very, very stupid or they are lying. There is no way that energy prices are going to fall. They may go up and down a bit but the trend will be upwards. The officially supported and protected global warming cultists will ensure that energy prices go higher by helping to prevent oil companies finding new supplies. This winter is going to be a doddle compared to next winter. If you agree with me it might be a good idea to make appropriate plans. Congratulate yourself if you have a working chimney.
  • In the UK, the crypto-fascist-communist Government is now telling us how to heat our homes. They’re banning gas boilers and log burners and they want us all to install heat pumps and cavity wall insulation. They can sod off. When they pay my heating bills they can decide how it’s heated.

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Thanks to the Fed, You’ll Work More This Year to Keep Last Year’s Standard of Living, by Ryan McMaken

Do you have that running-in-place feeling? Having trouble making that last pay check stretch to the next payday? You’re not alone. From Ryan McMaken at mises.org:

According to the establishment survey of employment, released last week by the Bureau of Labor Statistics, total employment increased, month over month, by 263,000 jobs. The job market stays strong,” reads one CNBC headline, and the new jobs print was hailed as a great achievement of the Biden administration by MSNBC pundit Steve Benen.

Yet the employment data is possibly the only data that looks good right now, and that’s not much comfort, since employment is a lagging indicator of the economy’s direction. In fact, if we look beyond the employment survey, what we find is an economy where real earnings are falling, savings are falling, and more people are taking on second jobs to make ends meet.

The first indicator of this is the fact that while total jobs have shown some relatively strong growth, the total number of employed persons has been nearly flat for months, and only last month (September 2022) did it finally return to precovid levels. In fact, the jobs recovery in employed persons took thirty-two months to return to the previous peak. The fabled “V-shaped recovery” promised by advocates of covid lockdowns never materialized. Had there been a V-shaped recovery, employed persons would have recovered to previous peaks by mid-2021. It ended up taking about eighteen months longer than that.

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