hyperinflationSubmitted by Bill Holter:

Mayor Bloomberg of New York City spoke Friday and told people not to worry about the sequester because the U.S. has “unlimited” amounts of money.  Does he really believe this?  Does anyone?
It is this exact mindset that put us in the situation we are in today, “money” is no object.  It is no object because it has no value.  Dollars cost little to print and nothing to create digitally.

I don’t know how it will be explained to the masses that “your money is worthless” but this is fact and the ugly truth will come out.  This is something that every citizen in the world has had to factor in to their investment and savings plans…EXCEPT for Americans.  Which is why the coming currency crisis will be felt harder here in the States and be coped with less effectively than anywhere else. 

 

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Mayor Bloomberg of New York City spoke Friday and told people not to worry about the sequester because the U.S. has “unlimited” amounts of money.  Does he really believe this?  Does anyone?  Please, DO READ this link, what Bloomberg has said is the epitome of stupidity, arrogance and structural ignorance that is running (ruining) this country.  He said that we could “owe an unlimited amount of money and there is no specific amount that would cause default”.  “UNLIMITED”?  Unlimited is an awfully big number, in fact “unlimited” is sort of like “infinity” don’t you think?  Oh that’s right, we’ve already spoken about infinity, nothing to see here…please move along.

Bloomberg has become a sort of poster boy for looming fascism, tyranny or even dictatorship.  You can’t buy any soda in New York over 16oz?  What the hell is this?  Wouldn’t you just buy 3 sodas if you wanted 48 ounces? Besides, it is your money isn’t it…can’t you spend it how you choose?   And his gun control stance?  They just passed the most restrictive (read “un” Constitutional) laws in the country, but have you ever seen pictures of him in public?  He has a swarm of ARMED bodyguards surrounding him.  How hypocritical?
But back to the “unlimited money” comments.  This guy is a billionaire and knows what “money” is but maybe he has so much of it that it has no meaning to him?  It is this exact mindset that put us in the situation we are in today, “money” is no object.  It is no object because it has no value.  Dollars cost little to print and nothing to create digitally.  How can anything that costs nothing to create have value?  They can’t and this is most central core of our problems.  “The Money”.
I don’t know how it will be explained to the masses that “your money is worthless” but this is fact and the ugly truth will come out.  This is something that every citizen in the world has had to factor in to their investment and savings plans…EXCEPT for Americans.  Which is why the coming currency crisis will be felt harder here in the States and be coped with less effectively than anywhere else.  “We” are just not used to having to factor in any thoughts about “the money” itself which is why disingenuous politicians like Bloomberg can get away with statements like the “money is unlimited”.
Theoretically he is correct however.  Because the Fed is able to create as much as they desire, it can be done.  Where he is totally wrong is that “foreigners” are lending us unlimited amounts, they are not and in fact have cut way back on what they are willing to lend us.  No problem though, the Fed has stepped in and taken up the slack.  I guess we will have to wait to see what “level” it will take to enter default…on second thought, we already did this nearly 42 years ago when money was demonetized.  Since then the “money” has become more and more “unlimited”, look where that has gotten us!  Regards,  Bill H.

  1. Imagine the hue and cry when NYC and NY go backrupt.  That’s pretty much a certainty given enough time.  Here’s Booberg, with cops that can’t hit anything but bystanders.   It would not take much imagination to realize that probably half the people in NYC have weapons, either in their homes or nearby.  This city would be a complete death trap when the SNAP and EBT cards are shut off, cyber attacks shut down the Fed and the TBTF banks, and another set of cyber attacks shuts down the water and utility systems.  I’m not saying with certainty this will happen but this unbeknighted fool is the poster child of Normalcy Bias and clueless ignorance. Smart guy, to be sure, but a complete dumbass as to the reality of the world.  Death Trap.

    • That’s one more good reason why we should stay as far we can from big cities, especially in the USA where there are a lot of guns and it will be the center of all crisis.

  2. Allow Me To Retore This Claim: Mahalo Miles Franklin

    #1 According to one brand new survey, 24 percent of all Americans have more credit card debt than money in the bank.
    #2 J.C. Penney was once an unstoppable retail powerhouse, but now J.C. Penney has just posted its lowest annual retail sales in more than 20 years
     
     
    J.C. Penney Co. (JCP) slid the most in more than three decades after the department-store chain lost $4.3 billion in sales in the first year of Chief Executive Officer Ron Johnson’s turnaround plan.
     
    The shares fell 18 percent to $17.40 at 11:28 a.m. in New York after earlier declining 22 percent, the biggest intraday drop since at least 1980, according to data compiled by Bloomberg. J.C. Penney yesterday said its net loss in the quarter ended Feb. 2 widened to $552 million from $87 million a year earlier. The Plano, Texas-based retailer’s annual revenue slid 25 percent to $13 billion, the lowest since at least 1987.
     
    How much worse can things get?  At this point the decline has become so steep for J.C. Penney that Jim Cramer of CNBC is declaring that they are in “a true tailspin“.
    #3 In the United States today, a new car has become out of reach for most middle class Americans according to the 2013 Car Affordability Study
    Looking to buy a new car, truck or crossover? You may find it more difficult to stretch the household budget than you expected, according to a new study that finds median-income families in only one major U.S. city actually can afford the typical new vehicle.
     
    The typical new vehicle is now more expensive than ever, averaging $30,500 in 2012, according to TrueCar.com data, and heading up again as makers curb the incentives that helped make their products more affordable during the recession when they were desperate for sales. According to the 2013 Car Affordability Study by Interest.com, only in Washington could the typical household swing the payments, the median income there running $86,680 a year.
     
    #4 The founder of Subway Restaurants, Fred Deluca, says that the recent tax increases are having a noticeable impact on his business…
    “The payroll tax is affecting sales. It’s causing sales declines,” he said, estimating a decline of about 2 percentage points off sales at his restaurants. “There are a lot of pressures on consumers,” Deluca said, adding “I think this is on the permanent side, but I think business will adjust to it.”
     
    #5 Many other large restaurant chains are also struggling in this tough economic environment…
    Darden Restaurants, which owns the casual dining chains Oliver Garden, LongHorn Steakhouse and Red Lobster, said blended same-store sales at its three eateries would be 4.5 percent lower during its fiscal third quarter.
    Clarence Otis, Darden’s chairman and chief executive, said that “while results midway through the third quarter were encouraging, there were difficult macro-economic headwinds during the last month of the quarter.”
     
    “Two of the most prominent were increased payroll taxes and rising gasoline prices, which together put meaningful pressure on the discretionary purchasing power of our guests,” he added.
     
    #6 The CFO of Family Dollar recently admitted to CNBC that this is a “challenging time” because of reduced consumer spending…
    At Family Dollar where the average customer makes less than $40,000 a year, the combination of a two-percent hike in the payroll tax, rising gas prices and delayed tax refunds has created a “challenging time and an uncertain time for the consumer right now,” said Mary Winston, the company’s chief financial officer.
    “In our case, anything that takes money out of our customer’s wallet gives them less money to spend in our stores,” she told CNBC. “So I think all of those things create nervousness for the consumer, and I think there are sometimes political dynamics going on that they might not even fully understand the details, but they know it’s not good.”
     
    #7 Even Wal-Mart is really struggling right now.  According to a recent Bloomberg article, Wal-Mart is struggling “to restock store shelves as U.S. sales slump“…
    Evelin Cruz, a department manager at the Wal-Mart Supercenter in Pico Rivera, California, said Simon’s comments from the officers’ meeting were “dead on.”
    “There are gaps where merchandise is missing,” Cruz said in a telephone interview. “We are not talking about a couple of empty shelves. This is throughout the store in every store. Some places look like they’re going out of business.”
     
    This all comes on the heels of an internal Wal-Mart memo that was leaked to the press earlier this month that described February sales as a “total disaster”.
    #8 Electronics retailer Best Buy continues to struggle mightily.  Best Buy just announced that it will be eliminating 400 jobs at its headquarters in Richfield, Minnesota.
    #9 It is being projected that many of the largest retail chains in America, including Best Buy, will close down hundreds of stores during 2013.  The following is a list of projected store closings for 2013 that I included in a previous article
    Best Buy
    Forecast store closings: 200 to 250
    Sears Holding Corp.
    Forecast store closings: Kmart 175 to 225, Sears 100 to 125
    J.C. Penney
    Forecast store closings: 300 to 350
    Office Depot
    Forecast store closings: 125 to 150
    Barnes & Noble
    Forecast store closings: 190 to 240, per company comments
    Gamestop
    Forecast store closings: 500 to 600
    OfficeMax
    Forecast store closings: 150 to 175
    RadioShack
    Forecast store closings: 450 to 550
    #10 Another sign that consumer spending is slowing down is the fact that less stuff is being moved around in our economy.   As I have mentioned previously, freight shipment volumes have hit their lowest level in two years, and freight expenditures have gone negative for the first time since the last recession.
    #11 Many young adults have no discretionary income to spend because they are absolutely drowning in student loan debt.  According to the New York Federal Reserve, student loan debt nearly tripled between 2004 and 2012.
    #12 The student loan delinquency rate in the United States is now at an all-time high.  It is only a matter of time before the student loan debt bubble bursts.
    #13 Due to a lack of jobs and high levels of debt, poverty among young adults in America is absolutely exploding.  Today, U.S. families that have a head of household that is under the age of 30 have a poverty rate of 37 percent.
    #14 According to one recent survey, 62 percent of all middle class Americans say that they have had to reduce household spending over the past year.
    #15 Median household income in the United States has fallen for four consecutive years.  Overall, it has declined by more than $4000 during that time span.
    #16 According to the U.S. Census Bureau, the middle class is currently taking home a smaller share of the overall income pie than has ever been recorded before.
    Are you starting to get the picture?
    Retailers are desperate for sales, but you can’t squeeze blood out of a rock.
    For much more on how the middle class is absolutely drowning in debt, please see this article: “Money Is A Form Of Social Control And Most Americans Are Debt Slaves“.
    But if you listen to the mainstream media, they would have you believe that happy days are here again.
     

    • Bill is mistaken in his belief that only the US citizens aren’t worried about inflation and its effect on their pensions and savings. British citizens will be caught with their pants down too. We’ve got money printing even worse than you guys, real inflation running at damn near 10% and nobody’s talking about it.

  3. What Mr Bloomberg is talking about is typical spooge mentality.  Most poor folk feel that any talk of governments being broke is a conspiracy.  They believe that governments are rich.  All this talk of government fiscal problems is just whitey talk for trying to make an excuse for lowering entitlements.  Or, taking them away entirely.  Bloomberg, for whatever reason, is just going along with spooge mentality.  He knows it isn’t true.  Or, maybe he just wants to keep the spooge calm.  It’ll be OK.  Stay calm and please don’t riot Mr spooge.  We got unlimited ducky’s to take care of you.  No need to get excited.

    • I have a wealthy friend who calls my talk of another stock market bubble “conspiracy theory” especially if we talk about buying silver as an inflation hedge.

    • You have wealthy friends right here, Mary, who do not agree with your other wealthy friend.  ;-)
       
      The paper asset world has worked remarkably well for the past 3 decades.  LOTS of money has been made by those of us who have played the paper game.  However… that game is now changing and those of us who have acquired some wealth now need to turn to KEEPING it.  This is where gold and silver come in.  They are anti-inflation competing currencies that will do better as fiat does worse.
       
      Currently, the stock market price is divorced from the reality of stock fundamentals.  While there are individual stocks and even some ETFs that are well priced and that will do well, even in an otherwise crummy market, the bottom line is that the stock market as a whole is being temporarily propped up by the Fed and their unlimited money printing.  Things of this type are temporary in effect and terrible in the long term because they are not sustainable.  This is yet another house-of-cards effect that has been implemented by the Fed at a time when the US economy is really not doing well at all.  By virtually every metric but share price, the economy is worse now than at any time in the past 3+ years… yet, the Dow, S&P 500, and the NASDAQ are ALL higher.  As with gold and silver price manipulation via naked shorting and the massive paper dump price smashes we have all seen at particular times, the US stock market is also being manipulated by the Fed.  I believe that they are doing this for 2 reasons: 1) sheer desperation and 2) to make themselves and their awful policies appear better than they really are.  
       
      Desperation of this kind IS an end-game signal of the 1st order.  If anything less than this would work, they would be doing that instead of this.  But nothing less than printing a trillion new dollars each and every year will suffice at fueling the anti-gravity machine that the US stock market has become.  While the efforts of the Fed and the Gov in this regard will ultimately fail, they are now engaged in a serious effort to buy time.  It is not clear what they will do with this purchased time… probably use it to finish the preps they now have in progress for the social chaos that comes along with financial collapse.  The fiat paper paradigm IS collapsing.   It is a slow process but we see the signs all around us… like small cracks in a dam that appear over time, slowly start leaking, then leak faster and faster until large chunks of concrete are blown out by the built-up pressure until a raging torrent collapses the entire structure.
       
      Got gold or silver?  Got preps?  I hope that you do as we are entering some VERY precarious times.

  4. The good citizens of Rockway in NYC, Booed and were yelling some pretty nasty things yesterday as his highness marched in the early St Patty’s day parade. Apparently they have not received the promised assistance post hurricane Sandy yet. He just smiled and waved!

    • Citizens from Rockway in New York city won’t be fooling around forever with him. One day, he might get shot out of nowhere if he continues to act like this, in my opinion.

  5. Good article…
     
    “I don’t know how it will be explained to the masses that “your money is worthless” but this is fact and the ugly truth will come out.  This is something that every citizen in the world has had to factor in to their investment and savings plans…EXCEPT for Americans.”
     
    Yes but this article is pretty much written for and read by those of us who DO understand the importance of converting fiat into gold and silver.  OUR money will be just fine.  :-D
     
    “And his gun control stance?  They just passed the most restrictive (read “un” Constitutional) laws in the country, but have you ever seen pictures of him in public?  He has a swarm of ARMED bodyguards surrounding him.  How hypocritical?”
     
    No, Bill, you just don’t get it.  HE is special.  We are not.  Therefore, HE gets protection from criminals while we get jack all.  Besides, it is not the guns of the Gov that are the problem.  It is those darned guns in the hands of the citizens that cause all the problems.  Why, without them, WE would be free to implement Elite Nirvana on Earth… for us, of course, while the “useless eaters” get exterminated, as is appropriate.  It is just SO hard to exterminate those who are armed!
     
     “Where he is totally wrong is that “foreigners” are lending us unlimited amounts, they are not and in fact have cut way back on what they are willing to lend us.”

    OK, so now we extend this thought to the next level. Here, we get to the point where foreigners are not only not loaning us any more money, they are also not taking any more of our crummy dollars either. WTF then, smart guy? Huh?

  6. The masses were brainwashed by the mainstream medias and everything else around them to believe that the fiat currencies have values. So, it is not a surprise that they don’t believe that fiat currencies have no values. I think the sheeple need to learn their lesson the hard way which is after the collapse.

    • If you are a sheeple, the hard way is the ONLY way.  Other than getting sheared on a routine basis and then heading to the mutton factory, sheep have very little purpose in life.

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