Why you should care?
Today is another bright and beautiful day. Definitely not a natural woke up process, I am still in a dreaming mode. Therefore, no more Canton Pinyin to type Chinese. For a change, just this morning.
I just read the news about the unemployment rate in U.S. has increased from 8.8% to 9%. The government explained, because those discouraged and unhappy unemployed people has started to look for jobs again. Yes, please read my other article about manipulation of economic data. Contradictory, the PPI and the CPI went up! Again, unemployment rates (U3) and the new CPI (CPI-U) are all chosen figures and they way measured was manipulated. However, if we just look at the relationship here, unemployment increased couple with both price increased, what does it mean to you?
According to Keynesian economists, this kind of situation would never happened, because historical experience suggested that high unemployment was typically associated with low inflation. However, the monetarist economist Milton Friedman later opposed the Keynesians and argued that when workers and firms begin to expect more inflation, the Phillips curve shifts up (meaning that more inflation occurs at any given level of unemployment). THe new Keynesian theories though actually make more sense and they believe this situation, Stagflation, is caused by cost-push inflation. Cost-push inflation occurs when some force or condition increases the costs of production. This could be caused by government policies (such as taxes), or from purely external factors such as a shortage of natural resources or an act of war.
This looks exactly what we are facing right now. U.S. Federal Reserve pumped up the currency supply in order to finance the national debt, and eventually causing the prices to go up but the economy isn't going in the same direction.
Seems like the government interruption didn't work out, and what now? It is not just about the United States, it gonna affect everyone in the world. The consequence is nothing small nor short term. It might cause the collapse of US currency or the continuous devaluation of your assets. I believe those reading this article are the top of the 20/80 group. Are you ready to face this big crisis? Let's do something for yourself, your family, and all your loved ones. Do not rely on others, especially your government.
I just read the news about the unemployment rate in U.S. has increased from 8.8% to 9%. The government explained, because those discouraged and unhappy unemployed people has started to look for jobs again. Yes, please read my other article about manipulation of economic data. Contradictory, the PPI and the CPI went up! Again, unemployment rates (U3) and the new CPI (CPI-U) are all chosen figures and they way measured was manipulated. However, if we just look at the relationship here, unemployment increased couple with both price increased, what does it mean to you?
According to Keynesian economists, this kind of situation would never happened, because historical experience suggested that high unemployment was typically associated with low inflation. However, the monetarist economist Milton Friedman later opposed the Keynesians and argued that when workers and firms begin to expect more inflation, the Phillips curve shifts up (meaning that more inflation occurs at any given level of unemployment). THe new Keynesian theories though actually make more sense and they believe this situation, Stagflation, is caused by cost-push inflation. Cost-push inflation occurs when some force or condition increases the costs of production. This could be caused by government policies (such as taxes), or from purely external factors such as a shortage of natural resources or an act of war.
This looks exactly what we are facing right now. U.S. Federal Reserve pumped up the currency supply in order to finance the national debt, and eventually causing the prices to go up but the economy isn't going in the same direction.
Seems like the government interruption didn't work out, and what now? It is not just about the United States, it gonna affect everyone in the world. The consequence is nothing small nor short term. It might cause the collapse of US currency or the continuous devaluation of your assets. I believe those reading this article are the top of the 20/80 group. Are you ready to face this big crisis? Let's do something for yourself, your family, and all your loved ones. Do not rely on others, especially your government.
Complete argue:) Besides, i think there may be wars around the world after collapse of USD. Be prepared folks!
ReplyDeletere: Curious
ReplyDeletemay be currency war instead
That's why some smart Americans storing 3B: 1B for bullion; 2B for beans and 3B for bullets.
ReplyDeleteLisa and Rich's Mum have mentioned that they recommend gold & silver bugs storing some foods and water in home for emergency situation.
Yes, we care our family members, so we need to be a smart investor during the time full of information not reflecting the reality.
ReplyDeleteSilverow
唉，英文水皮，唯有望文輕嘆！！
ReplyDelete