February 3rd, 2011 by Dissolving Dollars

I usually enjoy Howard Davidowitz’s rants and here are three recent ones.

February 3rd, 2011 by Dissolving Dollars

In order to prop up our obese government and the incompetence of the super rich financial wizards behind our pyramid scheme economy, the federal reserve, with its super loose monetary policy, has been coercing speculation in non-dollar assets, especially commodities (take a look). Bernanke and his money junkie minions who get to profit off the loose monetary policy will deny that fact, but it is a bit more than suspicious that commodity prices have been on a frantic march up ever since the promise of more free money was made during the summer of 2010. Perhaps there was maybe a bad wheat crop to justify higher prices in wheat, but what about the oil crop and gold crop? The overall money supply may not be growing much, but the problem is that the money supply is shrinking for those at the bottom of the economic pyramid and the money supply is growing for those at the top. And those at the top are speculating in whatever they can in order to avoid holding cash. The zombie stock market has been marching ever higher thanks to proprietary trading between banks with access to basically free Fed provided money. And commodities have been rising too. That speculation has driven up food prices and helped spur the unrest in Egypt, which Bernanke denies having anything to do with. Okay Ben, if what you say is true then why not raise interests rates to 3% right now? Oh that’s right, because asset prices would plummet and the illusion of an improving economy would die. Here’s Marc Faber’s assessment of the inflation situation: