Tuesday, November 9, 2010

Fed's Quantitative Easing to Starve Middle Class Americans

November 3, 2010

The Federal Reserve today announced that they will be implementing $600 billion in additional quantitative easing by the end of June 2011. The Federal Reserve will maintain its current policy of reinvesting principal payments from its security holdings and will expand its balance sheet by an additional $75 billion per month. The total announced balance sheet expansion was $100 billion higher than the public consensus of $500 billion. The Federal Reserve will continue to hold interest rates at record low levels of 0% to 0.25%, where they have been for nearly two years.

Quantitative easing is nothing more than the Federal Reserve printing money and creating inflation. This quantitative easing steals from the purchasing power of the incomes and savings of all Americans. While Americans are distracted by the mainstream media with daily debates by the Democrats and Republicans about taxes, U.S. taxes have almost no where near the effect on the lives of middle class Americans as does the Federal Reserve's monetary policy and quantitative easing. Instead of millions of Americans attending "tea party" events in Washington with Glenn Beck and Sarah Palin, they should be marching outside of the Federal Reserve building in New York chanting "End the Fed".

As highlighted in NIA's new documentary 'End of Liberty', which just surpassed 170,000 views in three days, prices of nearly all agricultural commodities have been spiraling out of control in recent months just in anticipation of today's quantitative easing announcement. In the past 60 days alone, cotton prices are up 54%, corn prices are up 29%, soybean prices are up 22%, orange juice prices are up 17%, and sugar prices are up 51%. Meanwhile, the Dow Jones has only gained 9%.

The Federal Reserve is doing everything in its power to push stock market prices up so that the government can take credit for an "economic recovery", but as NIA has been warning for years, inflation gravitates most towards the goods that Americans need most in order to live and survive. There is nothing that Americans need more than food. The agricultural commodity price increases of the past two months will begin to make their way into all supermarkets nationwide during the next few months. Americans who have been struggling just to make their mortgage payments, will now be forced to stop paying their mortgage in order to buy food. Instead of hoping to get the latest Apple gadget for Christmas this holiday season, American children better be grateful if their parents are able just to put food on the table.

After the financial crisis of late-2008/early-2009 when the Federal Reserve implemented its first round of quantitative easing, the Dow Jones rallied by 74% from its low of 6,469.95 in March of 2009 to a high of 11,257.93 in April of 2010. By the Dow Jones rallying, the U.S. government was able to take credit for creating an "economic recovery", despite the fact that unemployment remained near multi-decade highs. NIA released a documentary on May 13th called 'Meltup', in which we said, "The truth is, our economy is not recovering, prices are rising only due to inflation." NIA proclaimed in 'Meltup', "If stocks were to see a nominal decline one last time, we will likely see Bernanke shoot up his largest ever dose of quantitative easing."

On July 19th, with the Dow Jones having declined by 11% from its April high down to 10,073.68, everybody in the mainstream media was talking about the threat of deflation. NIA released an article on July 19th entitled, "Double-Dip Recession Does Not Mean Deflation" in which we said, "NIA believes the Federal Reserve is quietly getting ready to implement 'The Mother of All Quantitative Easing'." NIA went on to say, "NIA fears that come this October, Bernanke is likely to shoot up his largest ever dose of quantitative easing."

Today, NIA's prediction for the most part came true. The Federal Reserve announced massive quantitative easing ($600 billion) and our timing was almost perfect (we missed October by a few days). This isn't quite what we consider to be the "The Mother of All Quantitative Easing", but don't worry, the Fed will announce additional quantitative easing soon if the slightest hint of deflation reappears.

Current U.S. price inflation based on the consumer price index (CPI) is 1.5% and the Federal Reserve wants to see this number increase to 2%. The truth is, the U.S. Bureau of Labor Statistics (BLS) uses geometric weighting and hedonics to artificially manipulate this number lower than the real rate of inflation in order to keep American's social security payment increases as low as possible so that politicians in Washington have more of your money to spend. Based on the way the U.S. government previously calculated price inflation before the BLS's latest tactics to manipulate the CPI as low as possible, NIA believes current year-over-year price inflation is at least 5%.

No human being alive, especially Federal Reserve Chairman Ben Bernanke, is smart enough to perfectly manage the rate of price inflation by printing money. By expanding the balance sheet by $600 billion, NIA believes the real price inflation rate will rise above 10% in early 2011. Once Americans realize just how rapidly their dollars are being debased and losing their purchasing power, it could cause a rush out of the U.S. dollar and trigger hyperinflation as early as year 2012.

America no longer has a free market economy. For everybody on Wall Street to be so fixated on the words that come out of Bernanke's mouth, it shows that the economic system we have is extremely fragile and vulnerable to collapse at any time. With prices of assets soaring in recent months just in anticipation of Bernanke's quantitative easing announcement, it shows that the world's financial system is already flooded with trillions of dollars in excess liquidity. Unless the U.S. government immediately implements dramatic spending cuts across the board, NIA believes the world is going to lose confidence in the U.S. dollar and it will be impossible for the U.S. to survive past the year 2015 without the U.S. dollar becoming worthless.

The fact that the Republicans took control of the House of Representatives last night is completely meaningless. If the U.S. government is to implement the spending cuts necessary in order to prevent hyperinflation, Americans will be faced with a second Great Depression, which NIA believes is a necessity and much better than the alternative. However, the Republicans will not risk being held responsible for the next Great Depression, because it will ensure Obama gets reelected in 2012. Therefore, NIA predicts that nothing is going to change with the Republicans taking over the House.

The only good news that came so far this week is that Rand Paul was elected to the U.S. Senate. NIA predicted in our top 10 predictions for 2010 that Rand Paul would win both the Republican nomination for U.S. Senate in the State of Kentucky and the U.S. Senate seat and we are very proud that Rand Paul was victorious. NIA considers Rand Paul to be the true leader of the Tea Party movement because he fully understands the hyperinflation that awaits as a result of the Federal Reserve's actions.

NIA hopes to see Rand Paul filibuster any attempts by the U.S. Senate to raise the ceiling on our national debt. There is no reason to have a national debt ceiling if every time we reach it, Congress raises it. NIA prays that Rand Paul proposes a Balanced Budget Amendment in 2011, because this should be our government's top priority if it wants to restore confidence in the U.S. dollar and prevent a complete societal collapse.

NIA would like to apologize for the minor technical problems in the last two minutes of NIA's new 1 hour and 14 minute documentary 'End of Liberty', during the time in which NIA's President Gerard Adams was speaking. This small audio problem was caused by YouTube and out of our control. To make up for this, NIA's President will be featured in an exclusive NIA video later this month explaining in detail the hyperinflationary crisis that is ahead and how NIA members can prosper while the rest of America goes broke. As you know, NIA's President made a 378% return on his investment in silver call options that he suggested to you in February. He believes there will be many more opportunities similar to this for NIA members to become wealthy in the years ahead as the rest of America goes broke.

The most important thing for you to do to help your family members and friends survive the upcoming hyperinflationary crisis is to help them become educated to the truth. Tell them to become members of NIA for free and ask them to read our articles and watch our documentaries. If they have any questions about the U.S. economy or inflation, they can browse through our comprehensive 'NIAnswers' database and if their question hasn't already been answered by us, they can submit it to us to be added to the database. NIA will soon be announcing its most important new 'NIAnswers' of the past several months. Also, on December 7th, NIA will be releasing its latest update to its review of the major online sellers of gold and silver bullion.

NIA Projects Future U.S. Food Price Increases - frightening report

November 5, 2010

The National Inflation Association today announced the release of its report about NIA's projections of future U.S. food price increases due to the massive monetary inflation being created by the Federal Reserve's $600 billion quantitative easing. This report was written by NIA's President Gerard Adams, who believes food inflation will take over in 2011 as America's greatest crisis. According to Mr. Adams, making mortgage payments will soon be the last thing on the minds of all Americans. We currently have a currency crisis that could soon turn into hyperinflation and a complete societal collapse.

"For every economic problem the U.S. government tries to solve, it always creates two or three much larger catastrophes in the process," said Adams. "Just like we predicted this past December, the U.S. dollar index bounced in early 2010 and has been in free-fall ever since. Bernanke's QE2 will likely accelerate this free-fall into a complete U.S. dollar rout," warned Adams.

NIA projects that at the average U.S. grocery store it will soon cost $11.43 for one ear of corn, $23.05 for a 24 oz loaf of wheat bread, $62.21 for a 32 oz package of Domino Granulated Sugar, $24.31 for a 32 fl oz container of soy milk, $77.71 for a 11.30 oz container of Folgers Classic Roast Coffee, $45.71 for a 64 fl oz container of Minute Maid Orange Juice, and $15.50 for a Hershey's Milk Chocolate 1.55 oz candy bar. NIA also projects that by the end of this decade, a plain white men's cotton t-shirt at Wal-Mart will cost $55.57.

NIA's special U.S. food price projection report is now available to download for free by clicking here.

The report highlights how despite cotton rising by 54%, corn rising by 29%, soybeans rising by 22%, orange juice rising by 17%, and sugar rising by 51% during the months of September and October alone, these huge commodity price increases have yet to make their way into America's grocery stores because corporations have been reluctant to pass these price increases along to the consumer. In today's dismal economy, no retailer wants to be the first to dramatically raise food prices. However, NIA expects all retailers to soon substantially raise food prices at the same time, which will ensure that this Holiday shopping season will be the worst in recorded American history.

link to this report: http://inflation.us/foodpriceprojections.html

link to a full pdf report full with deeper explaination: http://inflation.us/2010inflationreport.pdf

Monday, November 8, 2010

Please be aware of the coming price inflation

Sugar Monthly Price
Month Value
May 2010 $15.11
Jun 2010 $16.31
Jul 2010 $17.70
Aug 2010 $18.60
Sep 2010 $22.68

I just wanted to place a quick article about food prices. The cost has gone up quite a bit of late but are set to even go higher with the FED buying our own debt. They just bought over $600 billion last week and add that to the $1.7 trillion they bought earlier in the year, we are set for the dollars value to lower. This means to you; those who remember the inflation of the 70's; much higher food prices and also commodities like gas, tires and anything made with oil. There is even talk of a possibly depression by those in the know in financial markets.

Please do your homework and prepare to tighten up the belts even more. You can do this by stocking up on food while the prices are still low. Please let your friends and neighbors know about this and to keep an eye on prices and prepare.

Wednesday, November 3, 2010

Kiel City Council Agenda Items 11/2/10 (Long!)

Kiel City Council Agenda Meeting

The agenda for the November City Council meetings was set last night. While I can't explain everything in the detail it was presented, here are the highlights.

As of December 1, 2010, landfills will no longer accept electronic equipment. The City Council is looking into ways that this issue can be addressed, including getting quotes/ideas from other townships for a recycling program. EarthWise Recycling from Sheboygan expressed interest in becoming a type of middle manager for the recycling of these articles. They charge a fee for TVs, computer monitors, microwaves and printers. Most other electronic items are free.

The City is looking into the possibility of purchasing a street sweeper to replace the one that has had repair issues this last year. The one roaming our streets (big orange sweeper) is on loan and the cost would strain the budgeted amounta for this item. They are looking at a 1994 Elgin Sweeper from New Franken. This sweeper, from what I understand, has 15,700 miles on it (not sure on the hours used) and the seller is asking $23,500 for the machine. A new one would cost over $200,000. With between 22 and 23 miles of city streets that need sweeping periodically through the year, a purchase like this is being looked at as an option.

Dennis Dedering said that he would have quotes for city snow removal ready for next weeks' City Council Meeting.

Mary Christel requested the board's approval for a non-combustible shelter, built by any of the clubs or groups in town, to be placed on the top of the sledding hill. The City would haul and store this shelter, as it does with the skating shelter.

The Wastewater Treatment Facility is looking to hire a new employee. This person would be considered an operator/mechanic with some lab duties as necessary. It sounded like they would prefer someone with certification, but if the right person applied, they would train. This position would cost approximately $85,000 which includes all benefits. The possible hire date would not be until after January 1, 2011.

The WWTF is seeking Council approval to start looking at a design to treat the wastewater biologically, rather than with chemicals. They have done a test run which showed that the phosphorus level is at 1.4. The DNR regulations require a phosphorus level of 1.0 if treated with chemicals or a level of 2.0 if treated biologically. The savings on chemicals would be approximately $70,000 per year.

The WWTF is drawing up a 10-year plan to present to the DNR to increase their points that the DNR then assigns to grants and/or stimulus monies. This plan looks at priorities for the city's needs and the possibility of expansion.

The sewer work is a top priority. The City of Kiel has approximately 250 sewer sections (manhole to manhole). They currently have 50 sections televised for leaks, clogs, and other problems, leaving 200 sections yet to be televised.

The other project that the WWTF is looking at in the future is the possibility of treating the methane gas from the WWTF to run a generator which would then sell the excess power back to the grid or to sell the methane gas (treated) as a natural gas, to large consumers such as industrial or commercial customers. It seems that, with treatment, methane gas can be used in place of natural gas. An interesting option.

Next on the agenda is the Electric Rate Study. I'll admit, this one was a little confusing, so bear with me, please.

The first item discussed was the hydro project. Of the five steps to get the hydro project going, two of them have been completed.

Approval from all the members of the Public Service Commission (PSC) has been done.
A purchase agreement with the seller of the hydro-electric project has been completed.
The PSC has to approve buying the energy produced
The Federal regulations must be met
The Financing has to be approved.

Electric rates are set to go up sometime between February and April. There has not been a rate filing by the City of Kiel since 2002, and the last two years, the income has been in the red—negative. The PSC determines how much an increase will be and when. The City has no say in that. Right now, we are approximately 25% below New Holstein electric rates. We are looking at a potential increase of anywhere between 5.0% and 5.7%. The City can file for a rate increase every year, every other year, or as needed. We are thankful that the City has not “adjusted” our rates in the last years, but all good things come to an end.

The retirement of the City custodian as of the end of the year was another topic of discussion. The custodial position covered some maintenance and janitorial work, as well as lawn cutting, trimming, and snow removal. As this position is responsible for not only City Hall, but the Police Station, Fire Station, Library, Stoelting House, Historical House, and the Community Center, a thorough job description is needed. The last job description written up for this position was in 1971. It was discussed whether to split this position into two part-time positions—one janitorial and one maintenance/snow removal or to see if someone would be able to cover the entire position as the current custodian has in the past.

Chief Funkhouser's report was uplifting. He thanked the Council for allowing him to attend a conference and accept an award. He spoke about the honor and recognition Kiel Police have received at the national level and also brought up the fact that 80% of police departments are made up of less than 20 people, of which we are one.

The Sleigh Bell Run is scheduled for December 4th. The police will be closing off Sixth Street for the safety of the walkers/runners in this event.

In the case of Ryan Zellner, all three counties involved are consolidating their cases into one case. I understand Mr. Zellner is to appear before a judge sometime in the next 4-6 weeks.

The “Round-About Jumper” as he's being called, was also talked about. The officer who witnessed the event was at McDonalds responding to a suspicious car. He heard the car coming south on Hwy 67. He was approaching the round-about at a very high rate of speed (eyeball was approximately 90mph) and didn't touch the brakes until he was in mid-air. The officer said the vehicle cleared the sapling at the top of the round-about and crashed down, breaking a large piece of cement from the curb. The driver took off on foot, but was traced to a medical facility (but missed by minutes) and turned himself in the following day. He admitted to consuming 5 cans of beer, so alcohol was a factor.

Other police business included addressing two cars in impound. The Chief will have to work with a lawyer to get clear titles on these so they can be scrapped out—neither of them are in working condition.

Thefts from cars continue in both Kiel and New Holstein. A laptop was stolen from a car in the River Terrace Subdivision, and other items have been reported missing from unlocked garages and vehicles. Make a point to lock your vehicles if parked outside and to lock garages in the evening.

Five minors were arrested during the Kiel Homecoming festivities for drugs. Some, if not all, were charged with selling drugs inside the High School. Three students have already been expelled from the High School, with the other two facing the same charges.

Kiel Picnic Committee has asked that the City extend the area to include all of the Fifth Street area between the Sts. Peter and Paul UCC and the businesses on the other side of this street for an additional band area. The Council recommended that a more formal plan for this request be presented.

Addressing Joint Dispatch, the need to maintain console updates and certification was mentioned.

On Friday, in remembrance of Sgt. Amy Krueger and the Fort Hood massacre, there will be a silent run from the Police Station to the Fire Station and past the three schools. Council members agreed unanimously to this and will take part if at all possible.

There have been no complaints regarding the Smoking Ban that the State enacted. There have been many positive comments from bar/tavern owners in appreciation for the work done between the City Council, Police, and the owners.

Another State approval that hasn't been mentioned all that much is the allowing of 4-wheelers on the road for snow removal use. The drivers of this equipment must be at least 16 years old, the vehicles must have a snowplow attached, the vehicles must have a flashing light visible for 300 yards and the operators must be within two miles of their residence.

The Kiel Police Department was approved for a taser grant. This will allow the police to obtain, train and use these non-deadly tools in keeping the peace. Kiel and New Holstein are the only two cities in the immediate area that don't have tasers at this time.

Last, but definitely not least, the City Hall Building was addressed. According to last year's quotes, it would cost over $1.3 million to remodel the first floor of the building and upgrade the electrical and wiring. To demolish and rebuild would be $2.7 million and offer better utilization of the space. The Council does have the right to make this decision without going to referendum because more than 50% of the space is used for Public Safety i.e. the Police Station and EMS. However, it was agreed that something of this magnitude should go before the people. The spring election will include this referendum with cost numbers for a complete remodel vs. a demolition and rebuilding in the same location.

There is a lot going on and a lot to stay on top of. We'll do our best to keep everyone informed. If anyone has differing numbers or information on the items in this post, please let me know—I can only report what I heard and understood—and my hearing isn't the greatest sometimes!