US Action News

U.S. government says that the annual rate of inflation is somewhere around 2 percent. Those of you that have to buy food and gas on a regular basis realize how much of a joke that is.

While Greece continues to inch its way towards a deal with its EU partners, the creditors of a much-larger debtor, the US government, appear to be untroubled. Ten-year Treasury bonds still yield just 2%. But the issue of how the US addresses its long-term fiscal problems is, as yet, unresolved.

Shopped for groceries or gas lately? Inflation looks bad so the congress just changed the way it was calculated to keep the sheeple from getting worried. And the band played on.

The intensive care of the U.S. economy has revealed a comatose patient. New factory orders, new housing starts, durable goods, unemployment figures, M2 money supply, the S&P 500 stock index, and the spread between the 10-year Treasury and the federal funds rate are the predictors for our economy’s health. If you were an emergency doctor with the finger on the pulse of this American economy under the current administration and Congress, you would be calling code blue.

As the Federal Reserve keeps printing dollars and forcing low rates to prop up the ailing economy food prices continue to rise. Most food up double digits from last year. Your Super Bowl party could cost you double this year. Also note the comment about a change of administration being good for the economy.

Our Constitution gives Congress the power to levy federal taxes, not the Federal Reserve. This hidden tax falls hardest on seniors and near-retirees who are not rich and can ill afford to take a lot of risk with their investments.

“Some increases seem almost customary, like ever-rising gas prices, while others, like a potential 25 percent hike on tap water, are more surprising.” Here is of a list of the products that will probably see a price increase in 2012 (majority of block-quote information via dealnews): – The Blaze

“the EU’s bailout-and-borrow policy had taken on a momentum of its own, like a runaway train. That train is now going at maximum speed, and has passed the point where a switch can still be thrown. The only question is when it hits the buffers. My guess is that we are months away.” – MEP Daniel Hannan in The Telegraph. Much the same can be said of the US debt problem.

[G]old isn’t tied to inflation. It’s tied to low real rates which are often the by-product of inflation.

[G]old isn’t tied to inflation. It’s tied to low real rates which are often the by-product of inflation.