mick silver
8th November 2010, 09:41 AM
The National Inflation Association today announced
projections for future U.S. food prices
based after this week’s announced $600 billion
in quantitative easing by the Federal Reserve.
The Federal Reserve announced this week that it will be
expanding its balance sheet by $75 billion per month until
the end of June 2011, for total quantitative easing of $600
billion. Quantitative easing is nothing more than inflation
and when the Federal Reserve creates inflation, it steals
from the purchasing power of the incomes and savings of all
Americans.
Inflation does not create jobs. Inflation merely causes
prices of goods and services to rise and makes it more expensive
for American families to support themselves. While
years ago it was possible for a father to support an entire
family of four or five on one income; today, both parents
need to work and they also need to get deeply into debt just
to make ends meet. With all of our society’s technological
advances of recent years, Americans’ cost of living should
be declining, but it has instead been spiraling out of control
due to the Federal Reserve’s destructive monetary policies.
Politicians love inflation because it allows them to monetize
their deficit spending. Politicians can also take credit
for an “economic recovery” when stock prices rise. However,
nominal stock market gains mean nothing to middle class
Americans if prices of food and other agricultural products
are rising at a much faster rate.
Inflation does not cause the prices of all assets, goods,
and services to rise equally. Real Estate, for example, will
likely rise the least this decade, because the U.S. government
never allowed the Real Estate bubble to fully deflate
and there is still an excess glut of vacant homes on the market.
NIA expects both Real Estate and stock market prices to
decline in terms of real money, gold and silver.
The best way to value stocks and Real Estate is not in fiat
U.S. dollars, but in terms of real money, gold and silver. The
Dow Jones is currently worth 8.2 ounces of gold. After the
NIA Projects Future U.S. Food Prices
inflationary crisis of the 1970s, the Dow Jones declined to
just 1 ounce of gold. We believe the Dow Jones (currently
11,434) is guaranteed to meet in price with gold (currently
$1,390) at some point this decade.
The median U.S. home is currently worth $171,700 or
6,550 ounces of silver. After the inflationary crisis of the
1970s, the median U.S. home declined to below 1,000
ounces of silver. NIA believes that because this decade’s
Real Estate bubble was so large, Real Estate prices will
likely overcorrect to the downside and the median U.S.
home will be worth only 500 ounces of silver at some point
this decade. Therefore, if you buy just $13,000 worth of
physical silver today, NIA believes you will be able to pay
cash (without any mortgage) for an average American home
within the next 5 to 10 years.
NIA believes the only asset class that has the potential
to rise in value by more than gold and silver this decade is
agricultural commodities. Inflation gravitates most towards
goods that Americans need to live and survive. There is
nothing that Americans need more to live and survive than
food.
Americans can cut back on entertainment (the New York
Mets just announced a 14% decrease in ticket prices for
next season). They can cut back on college education (NIA
considers college to be a scam). Americans can sell their
McMansion that they thought was an investment and can no
longer afford and move in with family members or friends.
They can sell their car, use mass transportation, and consume
less fuel. However, Americans can never stop spending
money on food.
For many decades, most American students went to college
to get a job on Wall Street. (When the financial system
collapses due to hyperinflation, most of these Wall Street
jobs will be gone forever.) With all the fantasy wealth being
created on Wall Street, no Americans had any desire to
become a farmer. Large portions of the country that werehttp://www.321gold.com/
once farmland, have now been turned into housing develop
projections for future U.S. food prices
based after this week’s announced $600 billion
in quantitative easing by the Federal Reserve.
The Federal Reserve announced this week that it will be
expanding its balance sheet by $75 billion per month until
the end of June 2011, for total quantitative easing of $600
billion. Quantitative easing is nothing more than inflation
and when the Federal Reserve creates inflation, it steals
from the purchasing power of the incomes and savings of all
Americans.
Inflation does not create jobs. Inflation merely causes
prices of goods and services to rise and makes it more expensive
for American families to support themselves. While
years ago it was possible for a father to support an entire
family of four or five on one income; today, both parents
need to work and they also need to get deeply into debt just
to make ends meet. With all of our society’s technological
advances of recent years, Americans’ cost of living should
be declining, but it has instead been spiraling out of control
due to the Federal Reserve’s destructive monetary policies.
Politicians love inflation because it allows them to monetize
their deficit spending. Politicians can also take credit
for an “economic recovery” when stock prices rise. However,
nominal stock market gains mean nothing to middle class
Americans if prices of food and other agricultural products
are rising at a much faster rate.
Inflation does not cause the prices of all assets, goods,
and services to rise equally. Real Estate, for example, will
likely rise the least this decade, because the U.S. government
never allowed the Real Estate bubble to fully deflate
and there is still an excess glut of vacant homes on the market.
NIA expects both Real Estate and stock market prices to
decline in terms of real money, gold and silver.
The best way to value stocks and Real Estate is not in fiat
U.S. dollars, but in terms of real money, gold and silver. The
Dow Jones is currently worth 8.2 ounces of gold. After the
NIA Projects Future U.S. Food Prices
inflationary crisis of the 1970s, the Dow Jones declined to
just 1 ounce of gold. We believe the Dow Jones (currently
11,434) is guaranteed to meet in price with gold (currently
$1,390) at some point this decade.
The median U.S. home is currently worth $171,700 or
6,550 ounces of silver. After the inflationary crisis of the
1970s, the median U.S. home declined to below 1,000
ounces of silver. NIA believes that because this decade’s
Real Estate bubble was so large, Real Estate prices will
likely overcorrect to the downside and the median U.S.
home will be worth only 500 ounces of silver at some point
this decade. Therefore, if you buy just $13,000 worth of
physical silver today, NIA believes you will be able to pay
cash (without any mortgage) for an average American home
within the next 5 to 10 years.
NIA believes the only asset class that has the potential
to rise in value by more than gold and silver this decade is
agricultural commodities. Inflation gravitates most towards
goods that Americans need to live and survive. There is
nothing that Americans need more to live and survive than
food.
Americans can cut back on entertainment (the New York
Mets just announced a 14% decrease in ticket prices for
next season). They can cut back on college education (NIA
considers college to be a scam). Americans can sell their
McMansion that they thought was an investment and can no
longer afford and move in with family members or friends.
They can sell their car, use mass transportation, and consume
less fuel. However, Americans can never stop spending
money on food.
For many decades, most American students went to college
to get a job on Wall Street. (When the financial system
collapses due to hyperinflation, most of these Wall Street
jobs will be gone forever.) With all the fantasy wealth being
created on Wall Street, no Americans had any desire to
become a farmer. Large portions of the country that werehttp://www.321gold.com/
once farmland, have now been turned into housing develop