SOTU: More Conflict Coming?

MORE AT LINK....

date published on Web 01/24/07
[link to www.urbansurvival.com]

SOTU: More Conflict Coming?

My current operating premise, as I sit back staring at the headlines seeking the "one great investment opportunity" that will drive me to a rich retirement, is that the US's long-time grip on "sole Super Power" status is weakening, and rather quickly. As this happens, we may be about to see some predictable outcomes such as a rapidly falling dollar, which in turn will lead to an apparent rise in gold, silver, and precious metals prices, a rapidly increase price point for domestically consumed energy, and a host of other impacts. Countervailing trends, or efforts to keep that from happening, pop up in places like last night's State of the Union address by the president.



FTo give you just one example, the president talked about how he would work to balance the budget:

"First, we must balance the federal budget. We can do so without raising taxes. What we need to do is impose spending discipline in Washington, D.C. We set a goal of cutting the deficit in half by 2009 — and met that goal three years ahead of schedule. Now let us take the next step. In the coming weeks, I will submit a budget that eliminates the federal deficit within the next five years. I ask you to make the same commitment. Together, we can restrain the spending appetite of the federal government, and balance the federal budget."

Which is rich, when you get down to it because deficit spending is exactly what has been going on at record rates by the pretend "conservatives" who've been in power for the past decade. The facts on the table don't square with the political rhetoric, although in fairness, what the democorps offered in their "response" was more hyperbole than substance as well, due to the fact that both parties eat from the same corporate hands. It's just that you and I are supposed to ignore that, and believe the great myth about the economy - that the budget can be balanced and yada, yada, yada.



We ain't that dumb.



My friend Bart, over at www.Nowandfutures.com has come up with the interesting idea to see if there's a correlation between the repressed price of gold and European Central Bank sales. Quick looked surprised: The correlation is about 97%. [Research note: If you click the ECB link in the article, change the search term "gold receivable" to just plain "gold" and look through there. Controversial data just sort of...you know...disappears when too many people pick up on it...].



The next thing Bart points out is that the annual rate of change on his M3B (which has a 99.99%+ correlation to M3 - before the Fed banksters went and played "hide the sausage" with that statistic a year ago, shows that the broadest measure of inflation is now running 12% annualized.







The reason the government can report low inflation is that they don't look at things like you and me. They make a lot of "hedonic adjustments" so if the price of steak is inconveniently high, they switch to ground sirloin - and maybe even tweak portions to reflect changing consumer habits. But, under it all, price has driven the habit change. Statistically, it's a good bush to hide behind, though.



Elaine asked me this morning "So, why would the government not just report the honest numbers when it comes to inflation?" She was looking at Bart's chart somewhat aghast, and I was contemplating our monthly grocery and power bills.



I explained that the government has a huge incentive to make inflation look low. If they can pull it off (and who's going to argue with government statistics, right?), then they can save piles and piles of money that would otherwise go to increasing pension benefits for groups like retired military, social security recipients, and so forth. I pointed to Bart's chart (and our 9% increase in electricity rates year-on-year) and said "If they can report 4% inflation in the face of 8 to 10% inflation, they can raise your brother's military retirement by $36 a month instead of nearly $100. The money that's saved can then be "invested" in wars.



"You mean on things like the national health insurance stuff in the speech?" Elaine was obviously more awake than me. "Uh...yeah...that's it..." I muttered, stuffing another hunk of toast in my face.



"So, they're going to do the same thing with health care that they did with car insurance - create another "mandatory" requirement, right?" she demanded.



"Oh, sure. That way, even if we don't have any technology breakthroughs, they can force some kind of growth in the economy. Wars only go so far..." I answered between bites.



Permanent War Plans

Elaine wasn't done with the discussion yet. "And you heard it last night; he wants to add 92,000 more troops to military levels over the next five years. So that means the war in Iraq and wherever will still be going stronger than ever in five years and we'll need and even bigger military than we have now?" She had a glint of anger in her eyes, and I couldn't say as I blamed her.



I put on my People's Economist mantle and answered "Well, they're going to make the case that the global situation is getting more tenuous and because of that America will need stronger defenses..."



"Like at the Mexico border?" (We'd both seen the report there was a 700+ roundup of illegals in southern California on Wednesday.)



"Here, look at this headline: Russia and India are working together to build a new stealth fighter. This is exactly what happens with an old system based on unlimited natural resources runs up against the sides of the Petri dish. Rather than let people go along to get along, spend more time fishing and pursuing spiritual development, consciousness raising things, the corporate crowd wants to keep people in the same mold, and manageable, talking on cell phones, buying wrestling pay-per-view, buying HDTV, new cars, and eating fast foods, so they can keep themselves in power. It's really no different than why religious cults of antiquity only shared their secrets with a few chosen "initiates". It's a power thing."


[link to www.urbansurvival.com]

The above article also has some interesting stuff on the Princeton Eggs, the noospheres. AND more