Get ready for the big bomb of inflation.......by me.......... V

[Ponce]

The coat and ties keep on saying that inflation is in lock down thanks to the low price of oil.....that's like keeping a finger in the dike.

To me is all a trap in order to keep all Americans quiet. Once the price of oil goes up (soon) inflation will go up 10-12%, all at once, and that's only the start. Avery one will be trap on a vice grip and with no scape........with the cancellation of the fiat that will open the doors not only to a new economy but also to a new world, 1984 will be here 100%........get mentally ready.

The "new" army will be here to keep the enemy on line....and you will be the enemy.

Get ready, and learn, to serve only the rich because the poor will always be poor.

V

[JohnQPublic]

Fed is Swapping Zero Interest Rates for Cheap Oil; Turmoil in Markets Result

By JohnQPublic
January 20, 2016

(Before It's News)
Stock markets are in a panic selling mode as we speak. There are real issues out there, such as China’s economy and plummeting oil prices. Cheap oil is good, right? Well why are the financial pundits complaining about it? I believe it is because the banks are still leveraged up on derivatives, and the rapid change in oil prices could cause them to collapse. Zerohedge has even reported that the Dallas Fed told Banks to suspend mark-to-market for energy loans four days ago. We are told oil is dropping because of lack of demand (China), to punish Russia, Saudi refuses to decrease production, etc.


I would like to propose another reason: The Fed need to raise interest rates. It cannot do that without collapsing the derivatives bubble. Unless, that is, it can find a substitute for zero interest rates. Could $10/barrel oil be the ticket? If true, at this point, the first prick in the derivatives bubble has been applied by the Fed, and the corresponding collapse of oil prices is occurring. Is it getting out of control? Can the Fed control this process? Only time will tell.

[palani]

What inflation? I just did a quick check of my hoard of twenty one silver dollars and it seems to not have grown a bit.

[JohnQPublic]

What inflation? I just did a quick check of my hoard of twenty one silver dollars and it seems to not have grown a bit.

I thought you had 21 fifty cent pieces?

[Sparky]

The key to timing the wave of inflation is demographics. The leading edge of the baby boomer generation turns 70 this year. Inflation will kick in big time when the government has to address the explosive budget shortfall from 2017-2030. (Look below at how the deficit grows relative to GDP during this time frame.) They will not default on those payments. They will create money to distribute. This is going to be a decade-long fight.

Attachment 8095

[madfranks]

Thanks for the chart Sparky. Outlays are anticipated to expand a full percentage point in total GDP. That's about $1.6 trillion, spread over more than a decade I doubt we'll see an explosion in inflation due to this.

[Sparky]

Thanks for the chart Sparky. Outlays are anticipated to expand a full percentage point in total GDP. That's about $1.6 trillion, spread over more than a decade I doubt we'll see an explosion in inflation due to this.

Outlays - Revenues = Newly Created Money

There's going to have to be a whole lot of newly created money starting in a couple of years. That's on top of what got created following the 2008-09 financial crisis. I think that's the inflation source.

[Neuro]

Thanks for the chart Sparky. Outlays are anticipated to expand a full percentage point in total GDP. That's about $1.6 trillion, spread over more than a decade I doubt we'll see an explosion in inflation due to this.

Yes $160 Billion/year is manageable social security deficit. Quit Wars for Israel and you save around $4-500 Billions/year in the budget on average, in other words get spending on military down on par with Russia and China. Still strong (possibly stronger) military, just mind your own g-d business...

[Spectrism]

The key to timing the wave of inflation is demographics. The leading edge of the baby boomer generation turns 70 this year. Inflation will kick in big time when the government has to address the explosive budget shortfall from 2017-2030. (Look below at how the deficit grows relative to GDP during this time frame.) They will not default on those payments. They will create money to distribute. This is going to be a decade-long fight.

Attachment 8095

Those are silly charts. Who would even think they can project things 60+ years into the future? Hillarious. Take that revenue chart at the top. After 2015, the curve should be DOWNWARD. By 2018 the greatest depression will have hit and the whole scheme of this chart will be unrecognizeable. Deficit? Double it. Then double it again by 2025. But we won't see 2025. The world will have gone through a series of wars leading to one wiping out 5 billion people and accompanied by famine, pestilence and disease like a zombie movie.

[Neuro]

Those are silly charts. Who would even think they can project things 60+ years into the future? Hillarious. Take that revenue chart at the top. After 2015, the curve should be DOWNWARD. By 2018 the greatest depression will have hit and the whole scheme of this chart will be unrecognizeable. Deficit? Double it. Then double it again by 2025. But we won't see 2025. The world will have gone through a series of wars leading to one wiping out 5 billion people and accompanied by famine, pestilence and disease like a zombie movie.

Actually revenues is in % of GDP, with a collapsing GDP, which I agree is likely, the portion of outlays should increase, but revenue could be largely constant, decrease with less salaries portion of GDP to maybe 2-3%, meanwhile outlays increase to 12-14%, so all of a sudden you have a deficit of 10% instead of 1% annually, that is under a non-inflationary scenario...