On the bright side

As the first month of 2011 comes to a close, it could have possibly set the pace for the rest of the year. Understand that the U.S economy is basically teetering off the edge which just about any light breeze could tip it right over but these situations could possibly be storms; California, New Jersey and others are on the verge of collapse. The dollar is on a very steep decline which could cause more debate on whether to continue the use of the US dollar as the world’s reserve currency.  Interest rates are on the rise and are at an eight month high. Interest rates’ going north spells disaster for government debt, the housing market and just about everything associated with those two. Oil and other commodities are on the rise as a result of inflation. A higher price for food and gasoline is going to hurt the already high official unemployed at 9.4%, and real unemployed at around 15%. So in other words as far as the economy goes, 2011 will be the year were the beginning of the end takes place but not the end of life. Upon the disaster that awaits us I have been blessed with the knowledge of becoming a father.  Not all is lost; there is still a future, for anyone to conquer.

Price Inflation is coming to town

Reports of price inflation are surfacing around the world from places like; China reporting above 6% inflation and 10% for food. The United Kingdom is reporting higher than expected inflation of 3.4%. Algeria and Tunisia have reported food riots that have left more than 10 people dead. Tunisian president Zine El Abidine Ben Ali has stepped down after massive civil unrest. I know everyone is seeing gasoline prices increase, this is not because of greedy oil and gasoline producers, its inflation, pure and simple. Food producers to grocery stores from Dominoes pizza, Sara Lee, General Mill to SUPERVALU grocery chain have made statements saying that they have to raise prices. Printing money is inflation, rising prices is the consequence. Ben Bernanke has publicly said that inflation is too low and wants inflation to be at around 2% but the truth is that inflation is already at 4-5%. Commodities like sugar, wheat, corn, coffee, soybeans are making huge gains. Just today, cotton is up 2.83%, wheat up 2.59% and rough rice up 3.57%. Don’t wait until the media picks up on this, it will be too late and inflation will be running wild by the time individuals take action. We cannot hope for government to help because government is the source of the problem. There are no signs of our government slowing down their appetite for spending and Ben Bernanke is hell bent on printing money to keep longer term interest rates lower. We are past the point of no return, if Oh-bomb-ah keeps spending and Bernanke keeps printing, that guarantee hyperinflation, if they do nothing, we will see a massive recession or depression.