MK: Economists like Bernanke say that they are concerned about lost jobs and DEFLATION and their response is always to loosen monetary policy – and fiscal policies – which floods the economy with cheap money and credit – but before it gets into anyone’s pocket . . .
. . . The top 1% are the immediate beneficiaries of the flood of money that economists release into the system – and what the top 1% experience – is INFLATION in the value of their assets like precious metals and rare Ming vases that appreciate faster than the rate of money entering the system as these folks front run themselves and buy stuff faster than the money can be printed and they pour money into the endowments of the Ivy League schools that produce the economists – to talk about the non-existent deflation threat that they know will mean lots more money creation and lots more asset price inflation coming their way – including stuff like food and energy – a miniscule percentage of their budget which of course impacts . . .
. . . the bottom 99% who don’t have any assets to inflate, but have to deal with the rise in food and energy – as a result of the rise in money and credit engineered by the economists who are working for the top 1% who, under no circumstances want to pay more than slave wages for their workers (or let anyone get more than 0% on their savings and pensions) so they make sure none of the money they helped stimulate gets into anyone’s pocket creating an economic condition for the bottom 99% called STAGFLATION.
If you know this then you understand the above headline: ‘Bernanke doesn’t see any job growth.’ He’s doing his job that he was put there to do by the top 1%. He’s making their assets go up in value while simultaneously bankrupting workers who lose all their negotiating leverage and end up competing with Chinese and Mexican workers living on $2 a day.
If you’ll notice, the economists on TV always talk about the threat of deflation. The investors on TV (like a Jim Rogers or Peter Schiff) always talk about inflation. And the alternative media that has neither economists or investors have guests on talking about loss of wages and rising cost of living problem of stagflation.
Politically, these distinctions only matter to the extent that each of these groups has some voting strength. Obviously, after the crash of ’29 a president could get elected appealing to the stagflating bottom 99% who also got their gold confiscated. During the rise of gold in 1970′s and early 1980′s – after closing the gold window – a president could get elected appealing to the inflating top 1%.
Here’s my prediction: With Gold and Silver inflating as they are, the next president will be the man or woman who promises NO TAXES ON GOLD AND SILVER GAINS. Even if a candidate as obviously unqualified as Sarah Palin were to make this promise she would get elected. It’s all part of my De, In and Stagflation theory of how it all works.