"We risk becoming the best informed society that has ever died of ignorance"
- Rubén Blades

"You can't make up anything anymore. The world itself is a satire. All you're doing is recording it"
- Art Buchwald

"It's getting exciting now, two and one-half. Think of everything we've accomplished, man. Out these windows, we will view the collapse of financial history. One step closer to economic equilibrium"
- Tyler Durden

"It is your corrupt we claim. It is your evil that will be sought by us. With every breath, we shall hunt them down."
- Boondock Saints

Saturday, April 23, 2011

Pressure Cooker

     The sheeple still have no idea what is coming.  Silver has been crushing performance metrics as of this week and the number 1 search on Google for this morning....Duffy.  Funny to note the Armenian Genocide which I would bet got such grand hits from Kim Kardashian (see below).  Zero Hedge was joking on a thread about the 10th place ranking of Bond trading on Yahoo.com only to discover that it was referring to Berry Bonds.  It amazes us how this population behaves.  We see clearly the grip that institutions have on people and the benefits experienced by those who can control the education system.
The way the US is going I'll toss out an idea that may cause your eyes to raise and thus fullfilling my expectation that people are really out of the loop when it comes to the realities of life.  Zimbabwe three years ago stopped printing its money.  They managed to knock 12 zero's off their currency.  The way things are going, a statistical break point will be reached where we as Americans are better off selling our USD and buying Zimbabwean Dollar.   So much for financial literacy, which brings me to the next point.

The Bernank released the transcript of a speech he gave earlier this money in honor of Financial Literacy Month, the same month the US crossed its debt limit and nearly faced a budget shut down (though we all knew it never really would happen).    He highlighted the fact that April is Financial Literacy Month and spoke about its importance to a stable a healthy economy and he described some of the Fed's efforts to help Americans make financial decision (transcript found here).  Bernanke stated that essential components of personal financial management include an understanding of how to budget strategically, use credit, save to build personal wealth, and shop for and choose suitable products.  He goes on to say First, we have worked diligently to foster financial and economic education. Second, we conduct research on consumer decisionmaking that helps to identify what works in financial education and informs the regulatory process. Third, in recognition that basic financial knowledge is not sufficient to safeguard people from fraud and deceptive practices, we have promulgated strong consumer protection rules and consumer-tested required financial product disclosures to ensure they present information clearly and in a useful format. We vigorously enforce consumer protection laws to ensure that providers of consumer financial products act fairly and comply with the spirit and letter of the rules.

So much for that financial literacy.....maybe the Senators should have not taken those trips (#1 & #2) abroad.  I bet these trips have to do with China & India buying up Physical Silver back in 2010 and most likely now. 

A day late and a deflated dollar value short

The Fed continues to defend the use of Core CPI as a viable measure to inflation.  The Cleveland Fed even created an argument for breaking up the weight of Owners Equivalent Rent in the CPI calculation.  They believe that buy lowering the weight of a large inflationary calculation can lower CPI and give a rating that appears, because of math, to be accurate.  Below is a graph of the new measure which we are told will be more accurate.  This new education in how to discount inflation in an inflation measuring index shows you, the consumer, how the Fed can do whatever it wants and the knock effects from uninformed people defending a calculation such as this, especially during a time of increasing inflation.  I've been using a measure of Inflation as calculated buy a basket of internet goods though this site.  When you click the link you get a "We'll be back soon" message.  ZH reported that this is because MIT is now combining the individual country inflation measures (they had US, Canada, Russia, China, India and a couple others) into one measure of World Inflation.  The US is trying to hide inflation and the pressure is continuing to build on its currency and the trust is beginning to fade the strength of the USD, as the S&P statement makes apparent.  Buy Physical Silver.

Source: http://www.clevelandfed.org/research/data/us-inflation/revmcpi.cfm