The Golden Truth: James Turk: The U.S. Is Following The Same Path As Weimar Germany

Tuesday, June 29, 2010

James Turk: The U.S. Is Following The Same Path As Weimar Germany

I've emphasized many times the striking similarities between the U.S. today and Germany during the Weimar period (1918 - 1933). I just listened to Turk's interview on King World News and I thought it would be useful to hear the "U.S. is Weimar" pontification from someone who I consider to be more educationally useful than were any of my professors at the University of Chicago Business School. This quote should wet your appetite:

We're following what happened in Weimar Germany very very closely. Before the hyperinflation actually occurred, they went thru a period that they actually thought was deflation [note: sound familiar?] because it felt like deflation. But the currency continued to lose purchasing power and ultimately the Government continued to spend [sound familiar?]. What the Government did under Havenstein's [head of the Reichsbank] command is they basically bought that Government paper and turned it into currency [today's Quantitative Easing]...The U.S. Government believes it can spend money and jump-start the economy...Bernanke thinks he can jump-start economic activity by making money cheap...

Ultimately what Turk refers to as "crank economics," implemented in Germany and being implemented by Bernanke, will lead to serious hyperinflation. Turk points out, as I did last week, that at this point the only choice the Fed has is to crank up the printing press and devalue the currency.

Here's the link to the interview. It's only about 10 minutes and well worth your time: James Turk

2 comments:

HopiumTuesday, 29 June, 2010
GOP Chooses Tax Cuts for Billionaires Over Jobless Benefits for the Unemployed

http://crooksandliars.com/jon-perr/gop-chooses-tax-cuts-billionaires-over-jobless

This is getting interesting by the day ( popcorn )
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HopiumTuesday, 29 June, 2010
The Doomer in me loves the frosted side of Kellogg's frosted flakes.

Buying Silver today.... because it is the right thing to do.
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Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.