The View From 1776

Beware Bernanke’s Baleful Binge

The probability of severely damaging inflation is too great to ignore.

Posted by .(JavaScript must be enabled to view this email address) on 12/27 at 02:19 AM
  1. Bill Tedford has correctly foreseen what will be happening; and he recites in this posting the very convincing data concerning the ballooning money supply and tepid GDP growth. It looks like Jimmy Carter and 1979 all over again. Lord Keynes at your service! He lives on-despite all evidence.

    It is clearly time to pare back on bonds and such fixed return securities, and time to buy inflation hedges. Unfortunately, the latter are difficult to come by. The natural resource stocks and commodity positions that Tedford recommends may turn out well, but it is not a good place for all your savings.

    I also recommend the major multi-national consumer product companies that are 1.) relatively immune to any direct damage from Obama's administration; 2.) are widely diversified with sales outside the US in the more rapidly growing countries; and 3.) which offer essential products with wide appeal to a vast number of customers. And they pay 3-5% in dividends and raise them regularly.

    It also might be wise to hold short term bonds of the highest quality so that in a couple years you will have cash to pick up the wreckage that Bernanke/Obaba will have wrought. The problem is--where is there any high quality bonds anymore, and can you go with minimal income while waiting?

    As for crystal balls: If inflation and interest rates top 10% within three years (as they did with Carter's administration), wouldn't Romney/Palin, or Romney/Jeb Bush, be the antidote?
    Posted by bill greene  on  12/27  at  09:21 PM
  2. Inflation decreases disposable income, resulting in less spending, which results in less production/demand of goods and services which will ultimately result in higher unemployment. It also causes the Fed to decrease the money supply by raising interest rates, which results in less business investment.
    Online Tax Preparation
    Posted by Online Tax Preparation  on  12/31  at  04:51 AM
  3. Perhaps the Fed should just be completely closed down--that is, eliminated-- immediately after closing the Dep'ts of Education, Energy, Agriculture, Commerce, Small Business, and Transportation. And what's that one that gives grants to "artists" like Mapplethorpe? That should be closed too!

    And then, if went to a lottery system to replace all elections, we would be rid of election finance corruption and the horror of year-round political campaigns! Wouldn't life be grand!

    Happy New Year !!!!
    Posted by bill greene  on  01/01  at  08:59 AM
  4. That is some inspirational stuff
    Posted by Twitter Layout  on  01/02  at  05:21 AM
  5. Until OUR monies are backed by some type of commodity ie:gold/silver, the money grubers of government be it republican/demacrat or other will always steal what is not theirs.
    Posted by .(JavaScript must be enabled to view this email address)  on  01/03  at  06:26 PM
  6. "Liberty First" is quite right, except that, I fear the current crop of crooks in Washington would even find a way to steal hard money. But at least they wouldn't be able to just keep printing it!
    Posted by bill greene  on  01/03  at  06:56 PM
  7. There is always a way, but if we get back to our original constituion it will limit those in charge
    Posted by .(JavaScript must be enabled to view this email address)  on  01/03  at  07:24 PM
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