The Monetary Bubble... The Invisible Phase

While a plethora of economists semi-blindly examines the current deflationary macro-economic trend, reality speaks to the fact that a massive wave of inflation is here. Before anybody calls me crazy... this potential monetary bubble is cycling through the economic phase which I theorize as the "Invisible Phase."

Television propaganda barks to the converted about company x laying off 50,000 individuals while company y economically disperses another few billion dollars. Soon, overly emotional laden talking heads take stage while basically adding to the simplistic theory of deflation. Because Keynesian and Austrian economists are at odds philosophically when it comes to the subject of inflation, their solutions radically differ.

As typical Keynesian do not give credence to the connection between money printing and the case being high inflation, these economists/bankers/activists indoctrinate to the world that printing high volumes of money has positive employment consequences. While their simple minds conclude that inflation is a pure macro-economic price elevation without any reason, various Austrian economist's [Ludvig von Mises, F.A. Hayek,etc.] theory of inflation says in a nutshell that the economic laws of supply and demand also apply to the printing of money. Hence... the more monetary units that is reproduced, the more expensive commodities eventually become.

Yes... the year of 2009 has definitely been documented as a highly deflationary year. Prices have heavily slumped, unemployment has risen while businesses big and small continue to bleed. The armchair Keynesian are shaking a finger at the idea that throughout the history of mankind, correlations have been drawn that by printing massive amounts of banknotes,inflation, including hyperinflation during the rare instance, has a high potential to come into reality.

So... where and when does this monetary bubble start to show signs of movement? Gaze at the St. Louis Federal Reserve System's Inflation Chart [m1]. Take note of the high monetary ascension during the past year [2008-2009].

It is time to give fair warning to citizenry. Keep one eye on the deflationary descents and the other on the monetary inflation. While it is not directly evident that inflation is coming, in reality, this market force is quickly adding up. This "Invisible Phase" of inflation is a warning to customers of the global economy that change is around the corner. During this period of deflation, money is rapidly being printed out of the thin air... meaning money is printed heavily, yet business is declining while unemployment is on the rise.

The central planer's blueprints are in front of us. By spending lots of inflationary money, this "Invisible Phrase," will in time lead the global economy towards the later version of this artificial growth; high and potentially artificial prices.


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Free Markets, Monetary Policies, And Energy Independence

Upheavals of toxic economic forces is sharply reducing purchasing power, partially because of the United State's citizenry, lawyers, lobbyists, and its political network. This bad situation has helped to further boost the dynamics of this debt ridden society .

Case in point... Washington, D.C. Circa 2008. Wall Street's army of wing tipped personalities march up Capitol Hill's steps to pull off the multi-task operation of scaring and dictating to the masses. Big business bailouts have become the order of the day and now the grandaddy of them all might soon leach the taxation money out of us. A seventy billion dollar [minimum] BAILOUT... thank you Hank [Paulson]! Thank you for all your well paid lobbyists, pulling the strings of sovereignty out of Washington with each of your high power economic moves. Now our once infallible dollar has come on hard times, inflation is increasing, and our national economy is definately recession.

While not all of our current problems could be solved with a magic wand, it is imperative that we steer our national ship in a better direction. Despite the fact that most people do not fully understand this issue, this problem's roots take place with our monetary creation becoming a "catch 22." In order to manufacture these one, five, ten, twenty, fifty, and one hundred dollar units, a cycle of debt is enacted.

Many moons ago when exhaustingly long lines were cued up behind petreul pumps, citizens should have gone beyond the mindframe of the 1970's mentality, driving 55 miles per hour. Common folk should have become more aware of oil company lobbyists pandering to the Middle Eastern dictators. Eventually we have paid for citizen apathy. At least notice has finally been documented.

I have a bit of good news and lots of bad news. Lets drive in reverse and state the bad portion first. We will have one hell of a time getting out of this economic slowdown/recession/depression. Expect more bailouts. Expect the dollar to furtherly deduct its value on a daily basis.

And the good news... some positive results are in the future by the United States becoming involved in its second Declaration of Independence. This action of bypassing the Straights of Hormuz could easily be obtained by drilling for domestic oil, while alternative energy is reserached and implemented until it is brought online. If the dire situation of the dollar continuing to fall south is corrected, this action of energy independence could possibly bring us back to becoming an economic superpower.

And for a bit more of bad news. Bailouts are going to flow like foreign oil being exported to the United States unless the Federal Reserve bank's pillars are so radically revamped that Paulson, Bernanke, and their good ole boy network becomes divorced from the United states of America.

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Congressional Authorized Crash

With today’s House of Representatives passage of HR 5512, a so called money reform bill, we have authorized congress to say yeah to the fact that they are further devaluing the already falling dollar.

By introducing steel to the already economically deprived pennies and nickels, we are creating a blueprint for further disaster. Getting rid of the already low cost zinc coinage will invite the financial system to accelerate its rate of inflation, putting a further strain on the average household.

HR 5512Overview
HR 5512 Text
Ron Paul's Opening Statment
House Passes Bill To Make Coin-Making Cheaper

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CPR Despite Stimulus

The one hundred and forty five billion dollars introduced by the White House/Capital Hill stimulus package is nothing more than temporal feel good solutions. This dream bill, semi-created by D.C. statists, is appealing to politicians, but equals disaster amongst most economists' opinions. According to the ever most important long-run, this possible legislation will create a higher inflation rate due to the Federal Reserve's monitorial printing press continues to overproduce, there will not really be a short run solution for stimulation the hurting economy, the consumer will direct the almost worthless money not controlled by the gold standard towards another economy than intended for the intended consumer. Additionally, these artificially created monetary units have once again been added to the already dangerous budget deficit. The private sector is forced to take the back seat because politics is what ultimately rules the roost.

http://www.angelfire.com/mo3/newsjunkie/libertarian.html
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