I can’t believe the Fed, changing the way they measure inflation. Oh great, further cooking and fudging of the numbers to make the economy look better than it actually is.
Everyone, who goes shopping for food realizes that there is inflation, but the U.S government keep lying to the American public, and 90% of U.S citizens are just eating it up….Duh OK we believe the government.
You can learn a lot from Robert Kiyosaki in this video. He talks about the eroding U.S dollar and why when you save you are actually losing purchasing power over time.
Now, if the average person in the world does what the American Federal Government is doing with debt, we will be in huge trouble. Oh wait…most of the people in Western world did just that and the world economy is already in trouble now.
If the Government can’t be prudent in managing their debt and setting a good example, then their citizens probably will be reckless as well. I remember watching a video of President Bush telling Americans to go and spend with their credit cards.
Marc Faber thinks that all governments, the U.S and Europe will keep printing money trying to fix the debt crisis and slumping economies with even more debt.
The crazy Keynesian notion that you can fix a debt problem by getting further into debt…that is nuts, but that is what the U.S and Europe is engaging in.
In 5 years time, the world might look very different. Marc Faber is ultra bearish and thinks people should be prepared to own gold, stable equities and avoid government bonds.
The timing is only different, he says, because “banks these days are much bigger than they were in 1929.” In the 20’s institutions were reliant on client money to lead their bailout attempts. Today Central Banks have the ability to call on future, often overstated, tax revenues and are unencumbered by anything such as a gold standard when attempting to ward off the human desire to hide under the covers, financially speaking.
Henry S. Dent has a pretty good track record of foretelling what will happen. Nobody can predict when it will happen just what is going to happen and so far, the next crash is taking longer because of Fed stimulus.
He recommends get out of stocks, commodities and get into cash and U.S Treasuries. He is not a gold bug though. He thinks it is a commodity and will get pull down with all other commodities.
-Started physical silver collection (coins, bars)
-Paper silver / gold market unsafe
-U.S dollar devaluation / Fed printing money
-Hyper inflation
-2012 Year of the Dragon 1/2 oz coin – Royal Canadian Mint
-Bearish on NASDAQ for 2012
Canada needs Canadian’s to spend to grow the economy and battle the global economic downturn, however the wages of working Canadian’s are not increasing in line with the cost of living.
Statistics Canada has outline that the major provinces are struggling with slow job growth which makes it harder for workers to demand higher wages and couple that with a rise in commodity prices around the world and you can see that energy (fuel) and food costs takes a bigger chunk out of Canadian’s pay cheques.
