Editor: Janine Hansen
Vol. 34 No. 12, Merry Christmas!
WARNING: Economic Trouble is Here!
Dear Friends,
I have struggled over what to write this month, but when I read “Double-Digit Price Inflation Returns!” by Martin D. Weiss in his email bulletin “Money and Markets” for Dec. 17, 2007, the decision was made. Let me preface all of this by saying, I am no economist, investment advisor or market guru. I am just someone who has been watching and reading economic news since I got my Securities license over 20 years ago. I have also been an avid observer of world economic events for many years. So, I will share with you what someone who I respect has to say about the economy.
Below I have excerpted some key portions of economist Martin Weiss, Ph.D., Report. It echoes my personal concerns. I write this because I care about each of you personally and I care about the future of our nation.
“Suddenly and without warning, price inflation—long ignored and forever understated—has burst onto the American scene with the force of a cat-5 hurricane. “
“The November jump in the U.S. Producer Price Index (of 3.2 percent in November) has exceeded the largest single-month rises (in 34 years) of the Bush 2000s…the Clinton ‘90s…the Reagan ’80s …and even the Carter 70’s. It’s the worst bout of wholesale price inflation since the aftermath of the 1973 Arab oil embargo.”
“It’s the equivalent of over 38% inflation per year—a double-digit reading so high that not even the usual line-up of statistics-manipulating bureaucrats or double-talking politicians has dared come forward to spin the news.”
“Gasoline: Up a Shocking 34.8%! Annualized Rate: over 417%!”
“This is the first in American History that the prices have surged so dramatically in the absence of a massive outside force…”
*February 1980: The Iran crisis drove U.S. wholesale gas prices up by 6.8%
*August 1990: the Kuwait crises drove gas prices up 17.1%.
*April 1990: the OPEC crisis drove gas prices up 28.8%.
*November 2007: The crisis created largely by the Federal Reserve itself has just driven gas prices up by more than all of the above 34.8%!”
“Today, what we have [is] the biggest bout of the most shameless money-pumping we’ve seen in our lifetimes. This time, the leading culprit is the U.S. Federal Reserve. Following their lead in the money-printing spree are also the central banks of Europe, Japan, China, and India...This time the primary force behind the surge in energy prices is the greatest, most flagrant violation of prudent monetary policy of all time.”
“In Money and Markets, “Fed Feeding Food Inflation,” Larry Edelson shows how this is driving the price of wheat, corn, soybeans and other commodities through the roof. And as Larry has stressed for many moons, it’s not just food. It’s ‘every natural resource under the sun’.”
“That means surging prices ahead for gold, silver, energy, construction materials, even water. It also means a wave of inflation the likes of which has not been seen since the 1970’s.”
What does it all mean? -continued on reverse-
You can read the entire article and many others at http://www.moneyandmarkets.com
Published with permission from:
This investment news is brought to you by Money and Markets. Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit http://www.moneyandmarkets.com.
What Does It All Mean?
By Janine Hansen
It means that the price of food is going to skyrocket, as well as the prices of everything else. It means that the Federal Reserve, a private bank controlling U.S. monetary policy has printed, at light speed, so many Federal Reserve Notes (the paper money we use) that every day the value (what you can buy with your FRN dollars) goes down and the price of everything we buy goes up.
It means that any FRN US dollar denominated investment is likely to go down, while all commodities, real goods that people can eat, wear, gold, silver and fuel for heating and driving is going up, up, up.
Think of the German Weimar Republic after WWI. The people literally carried wheelbarrows full of paper money to buy bread. In 1923 the German Government issued a 50 million-mark banknote, which was worth about one US dollar when it was printed. Nine years earlier it had been worth $12 million US dollars. Inflation had become so bad that, burning money was less expensive than buying firewood.
This happened because the government printed incredible amounts of paper money and injected it into the economy (like the Federal Reserve is doing now) and it caused hyperinflation. Some financial experts are saying the dollar could lose as much as 90% of its value by this time next year.
Am I a doom and gloomer? No, I have always been an optimist or I could not have continued fighting for Life, Liberty and Family all these years. But, I must be a realist when all the economic signs are clearly frightening! I heard this morning that 57% of Americans already believe we are in a recession. I believe that worse times are just ahead.
I encourage you to prayerfully consider what you should do. Food prices are going up. Buy additional food now, before the prices soar. Buy the food you eat, so that no matter what happens it won’t go to waste.
Make sure you have some emergency supplies. Previously, I have published a checklist for emergency supplies. I will post it on our website www.nevadafamilies.org
Cut out any wasteful spending if you haven’t already done so. Prayerfully, consider any investments you have and what you should do. Have some cash on hand if the banks fail. There was already a run on County Wide Bank in California and Bank of America bailed them out, and a run on North Rock Bank in England as well. With world economic conditions it is not too far fetched to consider that some banks might close leaving you with no cash. Prepare now!
Rally and Life Chain
Saturday, January 12, 2008,10am-1pm
South Reno Baptist Church, 6780 South McCarran, Reno
Featured Speaker: Norma McCorvey, (She was the original Roe in Roe v Wade)
An Evening with John Wilke,
author of Abortion, Questions and Answers
Friday, January 11, 2008
Silver Legacy, $50 a plate
RSVP 775-530-2314 by December 28, 2007
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The prophet Isaiah 700 years before Jesus Christ bore witness of his birth. “Therefore the Lord himself shall give you a sign; Behold, a virgin shall conceive, and bear a son, and shall call his name Immanuel.” Isaiah 7:14 KJV
“And in the sixth month the angel Gabriel was sent from God unto a city of Galilee, named Nazareth, to a virgin espoused to a man whose name was Joseph, of the house of David: and the virgin’s name was Mary.” Luke 1: 26 & 27
“And the angel said unto her, Fear not, Mary; for thou hast found favour with God. And behold, thou shall conceive in thy womb, and bring forth a son, and shall call his name Jesus.” Luke 1:30
“Now the birth of Jesus Christ was on this wise: When as his mother Mary was espoused to Joseph, before they came together, she was found with child of the Holy Ghost.
“…But while he thought on these things, behold the angel of the Lord appeared unto him in a dream, saying, Joseph, thou son of David, fear not to take unto thee Mary thy wife: for that which is conceived in her is of the Holy Ghost…
“Now all this was done, that it might be fulfilled which was spoken of the Lord by the prophet saying, Behold, a virgin shall be with child, and shall bring forth a son and they shall call his name Emmanuel, which being interpreted is, God with us…and he called his name JESUS.” Matthew 1: 18, 20, 22, 23 & 25.
“And Joseph also went up from Galilee, out of the city of Nazareth, into Judaea, unto the city of David, which is called Bethlehem; to be taxed with Mary his espoused wife, being great with child.” Luke 2: 4 & 5
“And so it was, that while they were there, the days were accomplished that she should be delivered. And she brought forth her first born son, and wrapped him in swaddling clothes, and laid him in a manger; because there was no room for them in the inn.” Luke 2: 6 & 7
“And there were in the same country shepherds abiding in the field, keeping watch over their flock by night. And, lo, the angel of the Lord came upon them, and the glory of the Lord shone round about them and they were sore afraid.
“And the angel said unto them, Fear not for, behold, I bring you good tidings of great joy, which shall be to all people. For unto you is born this day in the city of David a Saviour, which is Christ the Lord.” Luke 8-11
“And suddenly there was with the angel a multitude of the heavenly host praising God, and saying. Glory to God in the highest, and on earth peace good will toward men.” Luke 13-14
”And it came to pass, as the angels were gone away from them into heaven, the shepherds said one to another, Let us now go even unto Bethlehem, and see this thing which is come to pass, which the Lord hath made know unto us. And they came with haste and found Mary, and Joseph, and the babe lying in a manger. And when they had seen it, they made known abroad the saying which was told them concerning this child.” Luke 1: 15, 16, 17
And thus Isaiah’s prophecies are fulfilled “For unto us a child is born, unto us a son is given: and the government shall be upon his shoulder; and his name shall be called Wonderful, Counsellor, The mighty God, The everlasting Father, The Prince of Peace.” Isaiah 9:6
Through Jesus Christ, our Savior and Redeemer, we have everlasting hope in life and in death.
The Importance of Fiscal Responsibility in Government
By Congressman and Presidential Candidate Ron Paul
As the year draws to a
close, the battle over spending in Washington is heating up. The Democrats want
to expand government healthcare, while the President has vetoed the second
attempt to expand SCHIP.
The latest version of the State Children's Health Insurance Program would have
expanded the entitlement program and raised taxes, just as the earlier version
did and the President showed fiscal restraint with his veto.
Reducing our entitlement programs here at home is not against saving the
children, as the rhetoric goes, it is about saving the country's economy. The
fact is we have huge trade imbalances, massive deficits, and a $9 trillion
national debt, which balloons to $60 trillion if unfunded future liabilities in
social security and other promises we have made to Americans are included.
We are at a crucial point in history right now. We must think very carefully
about our next moves. There is coming a time, if we continue on this
path, when all that our tax dollars and government revenues will be able to do
is pay interest on the mountain of debt we have compiled in the past few
decades. That will mean no government programs or services of any kind will be
funded, yet future generations of Americans will still struggle under a crushing
tax burden with nothing to show for it. That is why fiscal restraint and
common sense with the budget are so vitally important in government.
The difference now is that our
printing presses at the Federal Reserve are getting worn out as we have expanded
our money supply to the breaking point
with yet another rate cut this week.
As the dollar falls, it is losing its reserve
currency status as many countries are shifting to the Euro or the Chinese yuan
or other currencies. The more that
trend continues, the weaker we become on the world stage. Those foreign
governments and entities that enabled us to spend so much for so long are
wearing thin and cutting us off.
The truth is our enemies won't need a
nuclear weapon to harm us if we keep spending phantom dollars at the current
rate. In fact, they won't need to
do anything but sit back and watch as we spend ourselves into oblivion.
Historically, empires fail because they run out of money, or more accurately,
run out of the ability to spend or inflate. Unfortunately, that is exactly the
direction we are headed. We need to control spending, immediately, before it is
too late.
I applaud the President for his veto of the SCHIP expansion bill. It is a step
in the right direction. But it is just one small step. What our economy needs
right now is to go full gallop away from the tax and spend policies that have
gotten us into this mess.