The Chinese keep expanding the use of mutual currency swaps to do an end run around the U.S. Dollar. Now Switzerland China currency swap is added to the growing list.
Here's the countries I have found, prior to the Swiss, that have entered into the currency swap arrangements with China since 2008:
United Arab Emirates (UAE)
This list may not have all the countries agreeing to go outside the dollar and do currency swaps with China. (I DID NOT DO A SEARCH ON EACH INDIVIDUAL COUNTRY AND THEIR CURRENCIES.) But the currency swaps are expanding to the Central Banks to include the ECB (European Central Bank) to now the Swiss Central Bank. The Swiss are a major player in world banking and finance.
And let's not forget, whether our national and international policies are right or wrong, this year we have alienated more countries, such as Russia and France (especially with the sanctions) to move away from the US Dollar.
Truthfully if this present trend continues and we have more international issues, without some real solutions to our monetary policy issues, you have to ask yourself: Will the US Dollar still be the world's reserve currency by the end of 2015?
Why does it matter whether the US Dollar is the world's reserve currency? Can't we just use the US Dollar at home?
Yes, you can use the US Dollar at home. We spend trillions in international trade and are highly dependent on it. In fact 20% of your food supply is IMPORTED. We have been exporting our manufacturing base since George Bush Sr. 41 was president. Since we have been exporting our manufacturing base we are dependent on IMPORTS for our economy and individual use.
Can you now see that we will experience our modern Weimar Republic (Germany post WWi), an onslaught of meteoric rise of inflation in major economic sectors of our economy, once other countries loose faith in the US Dollar as the trading instrument?
I encourage everyone to keep following the currency swaps on their own. The media seems to focus only on the BRICS countries, but they are just a fraction of what is going on. Follow the trend.
Be on your toes so your dollars, income and savings can go farther!
Swiss, Chinese Central Banks Enter Currency Swap Agreement
By Dow Jones Business News, July 21, 2014, 04:12:00 AM EDT
By Neil MacLucas and Richard Silk
ZURICH--The Swiss National Bank and the People's Bank of China reached a currency swap agreement on Monday, allowing the two central banks to buy and sell their currencies up to a limit of 150 billion renminbi, or 21 billion Swiss francs ($23.4 billion).
The deal will also allow the Swiss central bank to invest some of its huge accumulation of foreign exchange reserves in the Chinese bond market, the SNB said in a statement Monday.
The Zurich-based SNB said the agreement will further strengthen collaboration between it and its Chinese counterpart and is a "key requisite for the development of a renminbi market in Switzerland." It could also facilitate trade and investment between the two countries, the PBOC said.
Switzerland is the latest of a series of countries to set up swap lines with China, which is keen to promote the international use of the yuan.
Last year China signed swap agreements with the European Central Bank and a clutch of others, including the U.K., Brazil and Indonesia.
The agreement between China and Switzerland has a term of three years and can be renewed thereafter, the PBOC said.
Write to Neil MacLucas at email@example.com and Richard Silk at firstname.lastname@example.org
Do you think that the federal government statistics are accurate?
Dr.Paul Craig Roberts has written extensively on this. I refer you to his website, www.paulcraigroberts.org.
Basically in the Clinton administration they changed the way we calculated unemployment (which led to underreporting) and inflation the government had used for over 100 years. If you want to know the numbers based on the historical way inflation was calculated for over 100 years based upon today's data, see the website www.shadowstats.com of economist John Williams.
The truth is inflation is accelerating. Whether this country follows what happened to the German Republic after WWI remains to be seen.
What we also know wages are not increasing at a rate to offset the inflation. (Instead, when inflation rises it seems that some employers cut payroll.)
Look below at how food prices have been increasing and what others are reporting. Judge things by what you are experiencing. For example at the grocery store you are seeing price increases in three ways: (1) direct price increase; (2) decreasing quantity for the same or slightly higher price and (3) reformulation with cheaper ingredients and fillers.
Food prices are a faster rising sector due to many factors, i.e., the drought, 20% of our food being imported, the devaluation of the dollar, etc.
You can mitigate significantly the food inflation by locking in your prices with freeze dried and dehydrated foods. I encourage you to consider storing Thrive because it really has the best quality all around among the freeze dried food companies.
Inflation where it matters: Close to 50 percent of Americans indicate spending more on groceries and fuel this summer. Nearly one third indicate more spending on rent and mortgage payments
The stock market continues to move upwards ambivalent to economic indicators and the reality that inflation is permeating throughout our economy. The Fed continues to point at CPI as evidence that inflation remains subdued and this gives them the motivation to move forward with monetary policies that we have never embarked upon. We are already getting a taste of the bigger consequences including a growing low wage labor force. A recent Gallup survey found that Americans are spending more money on items that actually matter and items that consume a large portion of a household’s budget. This is key here in understanding the nature of inflation. Items like housing, healthcare, food, and energy make up a large portion of spending. Yet the Fed looks at other items that consume a small part of a household’s budget and balance out the overall picture. What you get is a massive understating of inflation and a stock market heavily juiced on easy money. Large pools of money are chasing real assets and crowding out regular Americans from the market.
Where inflation matters
It is interesting to see how people react to a constant feed of distorted information. The message is clear and it is one that is underplaying inflation. The tone set by the Fed is one in which monetary easing should continue to go on because inflation is simply not happening in the real economy. This could not be further from the truth.
Looking at the Gallup survey, you can find that Americans are spending more on the items that already consume a large part of their budgets:
Source: Gallup, GS
Read More at http://www.mybudget360.com/inflation-where-it-matters-inflation-2014-data-inflation-items/
I've been sharing various reports that food prices are increasing.
For example, from January 1, 2014 to the March report on zerohedge.com, food prices (reported by Bloomberg) went up 19%.
from Zerohedge.com March 26, 2014
Food prices are continuing their upward climb as the article by Michael Snyder below documents.
WIth all of the food pricing volatility, drought and current world events it is being a wise steward to store some food that you and your family routinely eat so you can cost average and lower your food bill.
Unfortunately the drought will probably be impacting food costs through 2015.
That's one of the great things about freeze dried and dehydrated foods. They last so much longer than the shelf life of grocery store foods. Plus our food comes in BPA free cans and we help you avoid GMOs, MSG, hidden MSG, aspartame, food processing chemicals, gluten, and more!
If the food inflation issue did not exist, we are a much healthier alternative to the traditional grocery store. And we are more convenient and help cut your meal prep times 50% or more since everything comes chopped, cut, prepped and clean!
So please do your wallet and your health a favor by trying Thrive! I will show you how to get the lowest price possible if you just email me at email@example.com.
If This Keeps Up, They Will Have To Start Putting Armed Guards On Food Trucks
By Michael T. Snyder, Guest Columnist, 7/17/2014 of TheEconomicCollapseBlog.com
The basic necessities in life just keep getting more expensive. On Tuesday, Hershey announced that the price of all of their chocolate bars is going to go up by about 8 percent. That is particularly distressing to me, because I am known to love chocolate. But if it was just chocolate that was becoming significantly more expensive perhaps that would be okay. Last month, it was coffee. J.M. Smucker, one of the largest coffee producers in the United States, announced that it planned to raise coffee prices by about 9 percent. And Starbucks has announced a bunch of price increases across the board on their coffee products. Of course we could all survive without chocolate and coffee, but as you will see below just about every food category is becoming more expensive. If this keeps up, could we eventually see armed guards in grocery stores and on food trucks?
On Wednesday, Robert Wenzel of the Economic Policy Journal shared some new data that has just been released by the federal government about food inflation over the past year. Without a doubt, these numbers are quite startling...
According to the latest data released today by the Bureau of Labor Statistics, year-over-year gains in some food products at the producer level have been truly spectacular.
Eggs for fresh use are up 33.9%.
Pork is up 28%.
Processed turkeys are up 20.4%.
Dairy products are up 10.7%.
Fresh and dry vegetables are up 8.4%.
Fresh fruits and melons are up 7.5%.
Unfortunately, paychecks for most American families are not going up at similar rates.
What that means is more pain when we make our trips to the grocery store. Things have gotten so bad that even the mainstream media is running stories about this. For example, this excerpt comes from a recent CNBC article...
"I try to do all my local errands in one day and go up to the mall," said Helon Rapfogel of New Jersey. "I used to go maybe twice or three times a week, and now I just go one day a week, if that much. And I try to consolidate things."
Rapfogel said that higher costs for food and gas are hitting her overall budget.
"You sacrifice things. Like not doing an ice cream run during the week with the kids. [That could] hurt the local retailers, and we don't want to do that ... but we may have to," she said.
At the grocery store, meat, dairy and fruit prices are all up substantially. People are even paying more for lattes at their local coffee shops. And it's not just food—gas prices have jumped sharply on geopolitical unrest, and at the moment there's no relief in sight.
So why is all of this happening?
Well, the truth is that a lot of factors have combined to produce something of a perfect storm.
First of all, we should talk about Federal Reserve money printing. Since the last financial crisis, the Fed has been on an unprecedented money printing spree. This has dramatically pushed up the prices of stocks, commodities and just about everything else. It was naive to think that we wouldn't eventually see substantial food inflation as well. Just look at what "quantitative easing" has done to M1 since the last recession...
When you have more dollars chasing roughly the same amount of goods and services of course prices are going to go up.
It is just basic economics.
But according to Federal Reserve Chair Janet Yellen, there is absolutely no reason to be concerned. The following is a video of her telling the press her view on inflation that I shared in a previous article...
But crazy Fed money printing is not the only reason why food prices are going up.
The endless drought in the western half of the country is severely hurting food production as well. The size of the U.S. cattle herd has shrunk for seven years in a row, and it is now the smallest that it has been since 1951. And the drought is hitting the state of California particularly hard, and considering the fact that it produces nearly half of all of our fresh produce that is more than a little bit alarming. Yes, we are more technologically advanced that we used to be, but we are not advanced enough to overcome an epic multi-year drought in half the nation.
In addition, we are also dealing with the worst pork virus to ever hit the United States right now. Porcine epidemic diarrhea has already wiped out about 10 percent of the pig population in the U.S., and approximately 100,000 more are dying each week. As you saw above, pork prices are already up 28 percent over the past 12 months, and if a solution is not found to this virus the price increases are going to get much worse.
Down in Florida, citrus growers are facing a horrific outbreak of citrus greening disease. The U.S. Department of Agriculture says that orange production in the U.S. will be down 18 percent compared to last year, and it is expected that this will be the worst crop in close to 30 years.
Another plague known as the TR4 fungus has hit banana production. According to CNBC, this horrible fungus may eventually completely wipe out the variety of bananas that we eat today…
Banana lovers take note: The world’s supply of the fruit is under attack from a fungus strain that could wipe out the popular variety that Americans eat.
“It’s a very serious situation,” said Randy Ploetz, a professor of plant pathology at the University of Florida who in 1989 originally discovered a strain of Panama disease, called TR4, that may be growing into a serious threat to U.S. supplies of the fruit and Latin American producers.
“There’s nothing at this point that really keeps the fungus from spreading,” he said in an interview with CNBC.
While there are nearly 1,000 varieties of bananas, the most popular is the Cavendish, which accounts for 45 percent of the fruit’s global crop—and the one Americans mostly find in their supermarkets.
For decades, Americans have been able to go to the grocery stores and fill up their carts with massive amounts of very inexpensive food.
But just because it has been that way for so many years does not mean that it will be that way in the future.
You should pay attention to the concentration of our food supply. It is bad for your health and your wallet.
When power gets concentrated:
Higher prices result because price fixing is easier, i.e., YOUR GROCERY BILL INCREASES!
You have less choice of products, i.e., cheaper ingredients, GMOs, MSG, hidden MSG, aspartame, etc.
Innovation gets decreased because competition becomes more difficult;
You have less influence over product ingredients.
Stay away from Walmart! It's sick that a third of the groceries are bought there! Walmart heavily relies upon imported food from China. Food grown in China has all kinds of safety issues. Please see my page, http://survive-thrive.us/food-country-of-origin/. Country of origin does matter for your health. Also a recent study this year found that 54% of the food sold in Walmart would not meet Whole Foods standards to be sold in their stores. Whole Foods has issues but nothing like Walmart, which I consider the bottom of the pit.
I visit a variety of grocery stores for market observations. It is very striking time after time observing the physiological differences between shoppers at Trader Joes and Whole Foods compared to Walmart. Many of the grocery shoppers at Walmart are grossly morbidly obese yet when you visit Trader Joes or Whole Foods you do not see that degree of obesity there. Just go and observe for yourself.
It makes you wonder could it be the foods these shoppers are selecting that is contributing to their physiological presence and health issues?
(You don't have to go to Walmart to save on your groceries.You can afford to stay out of Walmart by eating Thrive foods. Just contact me and I will show you how to save 20 to 40% or more by planning and not wasting food.)
Vote for your health and your pocketbook with your dollars! Avoid purchasing any of these brands if at all possible!
Pay attention to the diagram below. Vote for your health and your pocketbook with your dollars! Avoid purchasing any of these brands if at all possible!
Big Corporations Have An OVERWHELMING Amount Of Power Over Our Food Supply
By Michael T. Snyder, Guest Columnist, of TheEconomicCollapseBlog.com
From our fields to our forks, huge corporations have an overwhelming amount of power over our food supply every step of the way. Right now there are more than 313 million people living in the United States, and the job of feeding all of those people is almost entirely in the hands of just a few dozen monolithic companies. If you do not like how our food is produced or you don't believe that it is healthy enough, it isn't very hard to figure out who is to blame. These mammoth corporations are not in business to look out for the best interests of the American people. Rather, the purpose of these corporations is to maximize wealth for their shareholders. So the American people end up eating billions of pounds of extremely unhealthy food that is loaded with chemicals and additives each year, and we just keep getting sicker and sicker as a society. But these big corporations are raking in big profits, so they don't really care.
If we did actually have a capitalist system in this country, we would have a high level of competition in the food industry. But instead, the U.S. food industry has become increasingly concentrated with each passing year. Just consider the following numbers about the U.S. agricultural sector...
The U.S. agricultural sector suffers from abnormally high levels of concentration. Most economic sectors have concentration ratios around 40%, meaning that the top four firms in the industry control 40% of the market. If the concentration ratio is above 40%, experts believe competition can be threatened and market abuses are more likely to occur: the higher the number, the bigger the threat.
The concentration ratios in the agricultural sector are shocking.
-Four companies own 83.5% of the beef market. -The top four firms own 66% of the hog industry. -The top four firms control 58.5% of the broiler chicken industry. -In the seed industry, four companies control 50% of the proprietary seed market and 43% of the commercial seed market worldwide. -When it comes to genetically engineered (GE) crops, just one company, Monsanto, boasts control of over 85% of U.S. corn acreage and 91% of U.S. soybean acreage.
When so much power is concentrated in so few hands, it creates some tremendous dangers.
Because farmers rely on both buyers and sellers for their business, concentrated markets squeeze them at both ends. Sellers with high market power can inflate the prices of machinery, seeds, fertilizers and other goods that farmers need for their farms, while powerful buyers, such as processors, suppress the prices farmers are paid. The razor-thin profit margins on which farmers are forced to operate often push them to "get big or get out"—expanding into mega-operations or exiting the business altogether.
Of course the control that big corporations have over our food supply does not end at the farms.
The distribution of our food is also very highly concentrated. The graphic shared below was created by Oxfam International, and it shows how just 10 gigantic corporations control almost everything that we buy at the grocery store...
And these food distributors are often not very good citizens either.
Among the windmills and creosote bushes of San Gorgonio Pass, a nondescript beige building stands flanked by water tanks. A sign at the entrance displays the logo of Arrowhead 100% Mountain Spring Water, with water flowing from a snowy mountain. Semi-trucks rumble in and out through the gates, carrying load after load of bottled water.
The plant, located on the Morongo Band of Mission Indians’ reservation, has been drawing water from wells alongside a spring in Millard Canyon for more than a decade. But as California’s drought deepens, some people in the area question how much water the plant is bottling and whether it’s right to sell water for profit in a desert region where springs are rare and underground aquifers have been declining.
Nestle doesn't stop to ask whether it is right or wrong to bottle water in the middle of the worst drought in the recorded history of the state of California.
They have the legal right to do it and they are making large profits doing it, and so they are just going to keep on doing it.
Perhaps you are thinking that you can avoid all of these corporations by eating organic and by shopping at natural food stores.
Over the past 20 years, Whole Foods Market has acquired its competition, including Wellspring Grocery, Bread of Life, Bread & Circus, Food for Thought, Fresh Fields, Wild Oats Markets and others. Today the chain dominates the market because it has no national competitor. Over the past five years its gross sales have increased by half (47 percent) to $11.7 billion, and its net profit quadrupled to $465.6 million. One of the ways it has achieved this profitability is by selling conventional foods under the false illusion that they are better than products sold at a regular grocery store. Consumers falsely conclude that these products have been screened and are better, and they are willing to pay a higher price.
The distribution of organic foods is also extremely concentrated. A little-known company, United Natural Foods, Inc. (UNFI) now controls the distribution of organic and natural products. Publically traded, the company has a contract with Whole Foods and it is the major source of these products for the remaining independent natural food stores. This relationship has resulted in increasingly high prices for these foods. Small manufacturers are dependent on contracts with UNFI to get their products to market and conversely, small retailers often have to pay a premium price for products because of their dependence on this major distributor. Over the past five years, UNFI's net sales increased by more than half (55.6 percent) $5.2. billion. Its net profit margin increased by 88 percent to $91 million.
Everywhere you look, the corporations are in control.
And this is especially true when you look at big food retailers such as Wal-Mart.
Right now, grocery sales account for about half of all business at Wal-Mart, and approximately one out of every three dollars spent on groceries in the United States is spent at Wal-Mart.
That is absolutely astounding, and it obviously gives Wal-Mart an immense amount of power.
In fact, if you can believe it, Wal-Mart actually purchases a billion pounds of beef every single year.
So the next time someone asks you where the beef is, you can tell them that it is at Wal-Mart.
On the restaurant side, the ten largest fast food corporations account for 47 percent of all fast food sales, and the love affair that Americans have with fast food does not appear to be in danger of ending any time soon.
Personally, if you do not like how these corporate giants are behaving, you can always complain.
But you are just one person among 313 million, and most of these big corporations are not going to consider the ramblings of one person to be of any significance whatsoever.
Collectively, however, we have great power. And the way that we are going to get these big corporations to change is by voting with our wallets.
Unfortunately, the vast majority of Americans seem quite satisfied with the status quo. So the population as a whole is likely going to continue to get sicker, fatter and less healthy with each passing year, and the big food corporations are going to keep becoming even more powerful.
Have you noticed that prices seem to be rising faster than the official inflation numbers?
Independent of increasing prices, with food price increases are hidden two additional ways: (1) reducing quantity or weight yet offering it with a similar price; and (2) reformulating the ingredients of a processed food with cheaper, and often unhealthier ingredients.
Please read and pay attention to this article by Dr Paul Craig Roberts, Guest Columnist, with Dave Kranzler and John Williams of www. shadowstats.com.
The Deteriorating Economic Outlook
By Paul Craig Roberts, Guest Columnist (former Assistant Secretary of the U.S. Treasury), Dave Kranzler (www.investmentresearchdynamics.com) and John Williams (www.shadowstats.com)
July 8, 2014
The third and final estimate (until the annual GDP revisions) of first quarter 2014 real GDP growth released June 25 by the US Bureau of Economic Analysis was a 2.9% contraction in GDP growth, a 5.5 percentage point difference from the January forecast of 2.6% growth. Apparently, the first quarter contraction was dismissed by those speculating in equities as weather related, as stock averages rose with the bad news.
Stock market participants might be in for a second quarter surprise. The result of many years of changes made to the official inflation measures is a substantially understated inflation rate. John Williams (www.shadowstats.com) provides inflation estimates based on previous official methodology when the Consumer Price Index still represented the cost of a constant standard of living. The 1.26% inflation measure used to deflate first quarter nominal GDP is unrealistic, as Americans who make purchases are aware.
A reasonable correction to the understated deflator gives a much higher first quarter contraction. The two main causes of inflation’s understatement are the substitution principle introduced during the Clinton regime and the hedonic adjustments ongoing since the 1980s that redefine price rises as quality improvements. Correcting for excessive hedonic adjustments gives a first quarter real GDP contraction of 5%. Correcting for hedonic and substitution adjustments gives a first quarter real GDP contraction of 8.5%.
Realistic economic analysis is a rarity. The financial press echoes Wall Street, and Wall Street economists are paid to help sell financial instruments. Gloomy analysis is frowned upon. Even negative quarters are given a positive spin.
Years of understatement of inflation has resulted in years of overstatement of GDP growth. Thinking about the many years of misstatement, we realized that the typical computation in nominal terms of the ratio of debt to GDP is seriously misleading.
Consider that debt is issued in nominal terms and repaid in nominal terms (except for a few Treasury bonds with inflation adjustments). However, nominal wealth or nominal GDP overstates real economic strength. The debt is growing, but both the nominal and real values of the output of goods and services are not keeping up with the rise in debt.
To understand how risky the rise of debt is, nominal debt must be compared to real GDP. Spin masters might dismiss this computation as comparing apples to oranges, but such a charge constitutes denial that the ratio of nominal debt to nominal GDP understates the wealth dilution caused by the government’s ability to issue and repay debt in nominal dollars. We know that inflation favors debtors, because debts can be repaid in inflated dollars.
What Will the New Silver Price Electronic Exchange Mean to the Precious Metals Market?
For a long time organizations such as GATA.org, those involved in the precious metals industry as dealers and resellers have claimed that there is price fixing in the precious metals markets. Some have claimed that the big banks and the Federal Reserve have done a tremendous amount of “naked shorting” to suppress their true worth.
As with any claim or concerns about price-fixing, lawsuits are occurring. Apparently the current system has lost some credibility and has become a liability.
The London Metals Exchange now announces a new set-up, a silver price electronic exchange, starting in August for the selling of silver. Apparently it is trying to address these concerns. (see article below)
So the question becomes what will that do to the price of silver? If there is a new market for trading will that cause silver prices to increase? Will prices become more volatile or like a roller coaster ride? What impact will this have on other precious metals? These are just a few of the questions I have.
I do not have a degree in finance, business, or economics although I do teach business law to MBA students. So I am a layman, just like you, who reads, observes and looks for patterns.
What I am trying to determine is when the price of precious metal rise, is there an inverse relationship to the health of the dollar? If there is, then obviously when the price of precious metals elevate one should be concerned about the viability of the U.S. Dollar and other currencies. Another question I am mulling is whether a rise in precious metals is more of an accurate indicator of the true rate of inflation instead of our government statistics? Since the Clinton Administration changed the formula for inflation accounting many say that the real rate of inflation is underreported. See John Williams’s website www.shadowstats.com for more information.
For those interested in this topic see the announcement below:
* LBMA settles on silver fix replacement after 2-month hunt
* New mechanism heralds change in precious metals benchmarks
By Clara Denina and Jan Harvey
LONDON, July 11 (Reuters) – CME Group and Thomson Reuters will operate an electronic silver benchmark when the 117-year-old “fix” is disbanded in August, in a move widely seen preceding sweeping reforms of precious metals price-setting.
The London Bullion Market Association (LBMA) said in a statement on Friday that CME Group will provide a price platform and methodology for the daily process, while Thomson Reuters is responsible for administration and governance.
CME/Thomson Reuters will start testing the new process in early August after the closely contested competition to produce a solution.
The silver fix – used by producers, consumers and investors – is set every day at noon by three banks via a conference call, working out a price at which their customers are willing to buy and sell the metal.
But with increased attention from regulators in the wake of benchmark manipulation in other markets, the current operator – London Silver Market Fixing Ltd – said in May it would stop running the daily call.
The LBMA consulted market participants with the aim of producing a transparent electronic alternative that complies with toughened regulatory benchmarking standards.
Do your research. Look at the numbers, the economic and political issues. Can you really rely on the government to solve the problem? Or do we have to start focusing on doing the best for our home, start rebuilding our neighborhoods and communities from the ground up?
Economic Health: Gold is Probably Gone, Real Inflation Understated, Recession is Coming
I encourage you to listen to Dr. Roberts interview with King World News. The economy is much worse shape than policy makers are indicating. Many of the figures are overstated or understated our economic health, depending on the outcome desired.
If a private citizen or business did what the government is doing, would we be sued or at worse in jail?
Is your assets in paper only, whether certificates, stocks, money, etc.? Do you have possession of those paper assets? Or can you physically touch your assets?
In law we have a rule: Possession is 9/10’s of ownership. You can “own” something but if someone else has physical possession and a dispute erupts, then how are you going to get it? This is what causes many lawsuits, trying to get possession of things that people claim they owed but are being denied ownership rights. Many times while the litigation is ongoing the value of the property dissipates.
Deceptive Data: How Can We Rely On Government Figures?
The federal government collection of economic data should be objective and reliable. It is not supposed to be deceptive data or misleading figures. For example, in collecting the Census information, do you want them to report exactly how many people are residing in the US? Or do you want them to lower the number of figures (if one is concerned about overpopulation) or increase the figures in a state so that particular state can argue they are entitled to another U.S. Congressional seat at the expense of another state?
Just like when you hire an accountant do you want that accountant to report the numbers accurately or fudge the numbers and get you in a lawsuit, or worse, a tax audit?
When we go to the grocery store and see the size of packages shrinking, the price of products going up and cheaper products being substituted, we know instinctly that the government monthly and yearly figures on food inflation just does not jive.
But what if those figures, although we know instinctly they are wrong, greatly distort the level of inflation? What if the economic situation is much more serious than even our gut instincts tell us? Although that may be really bad news and we don’t want to hear it, is it better that we know so we can make more prudent decisions? Or is it better to ignore it and have deep regrets later when we could have mitigated our losses?
As a former litigator I can tell you when there is smoke, and someone is trying to significantly distort or hide the truth, there is usually a forest fire lurking around the corner. After all, if things were not really bad, what is the motivation to mislead?
Please carefully read the next article. Distortions like this just do not go on unless things are very ill internally.
Some may argue that the government may not want to upset or alarm you and they think they can resolve things before it gets out of hand. This is akin to a spouse, taking money from the joint account without telling you, spending it foolishly but thinking that they can put the money back in the account before the other spouse discovers it. If you’re the spouse not “dipping in the kitty” do you want to know what’s happening before all the money is gone or do you want to first learn about it when all the money has vanished or the well is dry? (I can hear it now: Honey, I really needed the money. You have too many pressures on you. I did not want to add any more. I thought I could handle this….Yeah, sure!)
What’s different about a domestic “breach of fiduciary duty” and the government in this situation? Feel free to share your thoughts.
Stone Cold Proof That the Government Economic Numbers Are Being Highly Manipulated
By Michael Snyder of the Economic Collapse Blog
How in the world does the government expect us to trust the economic numbers that they give us anymore? For a long time, many have suspected that they were being manipulated, and as you will see below we now have stone cold proof that this is indeed the case. But first, let’s talk about the revised GDP number for the first quarter of 2014 that was just released. Initially, they told us that the U.S. economy only shrank by 0.1 percent in Q1. Then that was revised down to a 1.0 percent contraction, and now we are being informed that the economy actually contracted by a whopping 2.9 percent during the first quarter. So what are we actually supposed to believe? Sometimes I almost get the feeling that government bureaucrats are just throwing darts at a dartboard in order to get these numbers. Of course that is not actually true, but how do we know that we can actually trust the numbers that they give to us?
Over at shadowstats.com, John Williams publishes alternative economic statistics that he believes are much more realistic than the government numbers. According to his figures, the U.S. economy has actually been continually contracting since 2005. That would mean that we have been in a recession for the last nine years.
Is An Economic Crash Greater than the Great Depression Near?
As many of you know I am engaged in the food and health war. But if we have an economic crash, where there is greater job loss than 2008 and thereafter, then if we have less funds will our food quality and health suffer?
For many of us who have food allergies and sensitivities or want to buy higher quality foods, the traditional grocery store just is not a friendly place. We will not fare well if we lose our income sources and have to go on food stamps.
So what suggestions do you have that everyone should consider to offset and prepare for a potential financial hurricane? Think about it! –No Name Attorney
The Crisis Is Imminent: “When The Real Crash Comes It Will Be Worse Than the Great Depression”
by Mac Slavo
“The United States is like the Titanic, and I’m here with the lifeboat trying to get people to leave the ship… I see a real financial crisis coming for the United States.”
Peter SchiffAugust 2006
In 2006, when he faced off with many well known Titans of investing and warned of an impending financial disaster and economic collapse, Peter Schiff was laughed at by his colleagues. He urged Americans to exit financial markets and take steps to protect themselves before the wealth held in their savings accounts, retirement investments and real estate was wiped out.
We know what happened next.
Now, those same financial experts who publicly vilified Schiff for his predictions six years ago are at it again. Many, including our politicians, central bankers and leading economists, have unequivocally stated that the worst is behind us, and that a global recovery is on the horizon.
“I think we are heading for a worse economic crisis than we had in 2007,” Schiff said. “You’re going to have a collapse in the dollar…a huge spike in interest rates… and our whole economy, which is built on the foundation of cheap money, is going to topple when you pull the rug out from under it.”
Schiff says that, despite “phony” signs of an economic recovery, the cancer destroying America stems from a lethal concoction of our $16 trillion federal debt and the Fed’s never ending money printing.
According to Schiff, these numbers are unsustainable. And the Fed has no credible “exit strategy.”
Eventually interest rates will rise… and when they do, Schiff says, stocks will tank and bonds dip to nothing. Massive new tax hikes will be imposed and programs and entitlements will be cut to the bone.
“The crisis is imminent,” Schiff said. ”I don’t think Obama is going to finish his second term without the bottom dropping out. And stock market investors are oblivious to the problems.”
“We’re broke, Schiff added. ”We owe trillions. Look at our budget deficit; look at the debt to GDP ratio, the unfunded liabilities. If we were in the Eurozone, they would kick us out.”
“The Fed knows that the U.S. economy is not recovering,” he noted. “It simply is being kept from collapse by artificially low interest rates and quantitative easing. As that support goes, the economy will implode.”
A noted economist, Schiff has been a fierce critic of the Fed and its policies for years. And his warnings have proven to be prophetic.
His recent warnings, however, have been even more alarming. Will they also prove to be true?
In his most recent book, “The Real Crash” How to Save Yourself and Your Country“, Schiff writes that when the “real crash” comes,” it will be worse than the Great Depression.
Unemployment will skyrocket, credit will dry up, and worse, the dollar will collapse completely, “wiping out all savings and sending consumer prices into the stratosphere.”
“All we can do now is prepare for the crash,” Schiff said. “If we brace ourselves properly and control the impact, we will survive it.”
We must understand that none of the fundamental problems leading up to the 2007/2008 financial crisis have been resolved.
Give me a call at (336) 823 0008. I'll give you candid answers to your questions.
Look forward to hearing from you! Debi
What Are GMOs?
Watch So You Can Protect Your Health!
Wonder Why We Do What We Do?
Let us not lose heart in doing good, for in due time, we will reap if we do not grow weary. So then, while we have the opportunity, let us do good to all people, and especially to those who are of the household of the faith.
Galatians 6:9-10 (NASB)
BEST COLON CLEANSER ON THE MARKET! SUCCESSFULLY COMPLETED PHASE 3 CLINICAL TRIALS
Here's what I take. It's the best non-GMO, gluten free, colon cleansing, detox agent I've found, Oxy-Powder:
It's safe, effective Does not cause cramps or pain like some colon cleansers on the market. Remember, if 80% of your IMMUNE SYSTEM is in your GI TRACT, you need regular cleansing with all the toxins exposure we have.