[ShaunW]

Its all part of the serial Financial bubbles that have occurred for the last 15 years. Blame Alan Greenspan, he is the real source of inflation and the bubbles.

A beautiful explanation of inflation by Mr. William A.M. Buckler, from the Privateer. http://www.the-privateer.com

Quote: It has already become clear to many, and is quickly becoming clear to many more, that the so called "inflation measurements" put out by governments all over the world are completely ridiculous. The point that few have yet taken onboard is that they have always been ridiculous. The reason for that is simple. They try to "measure" inflation by reference to nothing but prices. The fact that the prices chosen as the units of "measurement" have been increasingly selective is beside the point in one respect. Inflation is an increase in the quantity of money - from whatever source derived. Rising prices are but one of a universe of economic and financial distortions that the practice of increasing the quantity of money brings about. But there is another aspect in which the selectivity of the prices which will be measured to determine the level of inflation is not beside the point at all. In an economy and financial system which is, on the surface, functioning well, the majority of the new money created by goverments and their central banks with the commercial banking system as the conduit tends to flow primarily into financial assets. This is very advantageous to the powers that be, whether they reside in the legislature or in the hallowed halls of banking (central or commercial) or in the boardrooms of the big corporations. This is because both sides of the transaction - the "money" and the financial "assets" it is chasing - can and are created out of thin air. The government creates "money" by issuing debt paper. The banks do it by the practices made possible by the fractional reserve system. And big business has long since stopped going to the banks for operating capital. Nowadays, they either create new quantities of stock or print up and sell their own debt paper. And as long as the "money" is confined within this wonderful printed carousel, all is right with the world. Stocks, bonds, mortgage deeds and debt paper of all types and complexities have prices too, but these prices have never figured in the "inflation" calculations of any government or central bank. The amazing odyssey of the Dow climbing from 776 to 11723 points between 1982 and early 2000 was never equated with inflation. Nor was the immense increase in government debt and the fantastic piling up of other forms of debts and derivatives of debts of all descriptions which took place over the same period. This is a primary reason why, after the travails of the "inflationary" 1970s, the global financial system based on fiat paper backed by nothing and therefore able to be created at whim by the noxious partnership of government and banking, lasted as long as it has. The vast oceans of new "money" created were channelled into financial assets. And since the US Dollar was the financial asset which "underpinned" all the rest, it was universally acceptable. Thus, the US spent the quarter century betweeen 1982 and last year progressively switching its economic output from goods to Dollars. They could do this because the rest of the world was eager to exchange their goods for these Dollars. But now, we are facing a radically different situation. The US central bank, the Fed, is doing more than ever in its history to try to keep the monetary inflation going. But it is not succeeding to the extent necessary to keep the credit expansion going because its conduit, the commercial and especially the investment banking system, has broken down. The appetite for financial assets is no longer there - to the extent in recent days where the only place they can be "disposed of" is the central banks themselves. The stock markets are still holding up, to an extent, but for how much longer? All of a sudden, as far as most people are concerned, "inflation" has reared its ugly head and is now galloping ahead at speeds not even seen during the worst of the 1970s. On the contrary, "inflation" never went away. Indeed, the period since the 1970s has seen a level of inflation which dwarfs anything which took place during the 1970s. But the "money" produced by this inflation is no longer being "laundered" by the financial asset markets. To an accelerating extent, it is bypassing them and going straight into the markets for REAL GOODS. Inflation is a purely MONETARY phenomenon. To identify its source it is only necessary to identify the source of the "money". Having done that, the solution is simple. Block the source. ©2008 - The Privateer® Market Letter All Rights Reserved

	Manhattan Reefs Manhattan Reefs, the best aquarium community on Planet Earth!

[lfsmarineguy]

The problem with ethanol is not in the use of corn while people all over the world are starving. The actual problem with ethanol is that it's overhyped and nobody ever talks much about it's production. Ethanol uses gasoline in it's processing (go figure) and is only 75% as efficient as the fuel it's being used to replace. So we need gas to even make it and it's only 3/4 the efficiency of our current source of energy. Plus it's not readily available (atleast yet) in most places. Where does it make any sense? It's more polluting than our current scenario between it's processing and having to burn more of it to get the same distance per tank. Another problem with the ethanol craze headed by Al Gore is the government's subsidies have changed. Farmers are turning to corn over their current crops due to the fact that corn is now subsidized. This is the first time in U.S. history we have ever had to import wheat. This drives up the cost of wheat making it's derivitive products more expensive. So, ethanol is a joke headed by it's largest investor, Al Gore, and we are all paying for it. Al Gore, didn't invent the internet but he did invent global warming.

[boozeman]

group buy?
www.teslamotors.com

[lfsmarineguy]

Only problem with those Booze is you don't get a throaty exhaust with them. The electrics end up sounding like giant wind up toys .

[lfsmarineguy]

OMG, it's worse than I thought....... it's silent.

[ECFENCING]

Tesla is $109k.....$60k to reserve.....

[inkblue]

WilliamSburgh to Midtown, in ruSh hour... 20 minuTes... ALSO eLectric !

[Chris5]

Gas now $4.11 here in lower Westchester ... but feeling very bad for anyone who has a diesel $4.89 I saw at one place

Ummm anyone predict $5.00 soon....
I can remember going to NJ when i was younger for 1.00 a gallon ....

[Aqua Pro Builder]

Quote: Originally Posted by Chris5 Gas now $4.11 here in lower Westchester ... but feeling very bad for anyone who has a diesel $4.89 I saw at one place Ummm anyone predict $5.00 soon.... I can remember going to NJ when i was younger for 1.00 a gallon ....

Hey how much is milk back then?

Milk is somewhat 3.xx/gallon in NYC now

[inkblue]

wHy peeps compLain about gas, wHen they pay $1.00 for a small bottle of WATER!!!