Forewarning on New Major Economic Crisis in America

 

 

The "fiscal cliff" will be far overshadowed by the next looming financial crisis in America. The burst of the inflation bubble will be an economic catastrophe for America. The Bureau of Labor Statistics reports the monthly Consumer Price Index, that represents the "reported" inflation rate in our country. In 2009 the inflation rate was reported as flat, and even went negative for a few months! In 2012 it is running about 2%, or less. Yet those of us who buy food and all the necessities to live by, and pay for energy costs, gasoline, health insurance, increasing taxes and fees, etc. realize that REAL inflation is running from 10 to 15%...much higher than reported.

Generally, under normal times, keeping interest rates low is a good thing since it stimulates investments and eases debt burden. But these are far from normal times. Interest rates on savings have been artificially suppressed, actually squashed down, for over 3 years now to levels typically well under 1%. This has a tremendous negative impact on seniors who place a good amount of their life savings into conservative investments such as savings and CD accounts, but get practically nothing in return. It also affects the middle class and the poor since they are unable to improve their financial state through savings. Further, with interest rates artificially so low much less money goes into the economy through spending. Even worse, money that is in savings and CD accounts is worth less and less since real inflation is quite high and the value of the dollar is decreasing.

The final nail in the coffin comes from the Federal Reserve printing paper money, flooding the economy with nothing to back it up, to the tune of $40 billion per month, or $480 billion per year! The result of this is that the dollar is worth less and less.

 The result of real inflation being already high + interest rates squashed artificially low + the value of the dollar being lowered by printing an enormous amount of paper money = an economic disaster for America.

The inflation bubble will burst, causing prices / inflation to skyrocket. Prices of food and needed goods to live by will be staggeringly high. Millions, upon millions of Americans will be driven into a state of poverty and dependency. It will become a seemingly different America almost overnight.

It seems that all the economists and the "financial experts" have their head in the sand on this. We are headed toward a very major economic crisis in America that will overshadow anything that has happened so far. It will hit us in 2013, or at the latest in the first quarter of 2014. This is a forewarning.