Infinite Unknown

Mervyn King ‘nuked’ the UK by using what economists call the ‘nuclear option’ (=quantitative easing = printing money = creating money out of thin air = increasing the money supply = inflation = hidden tax on monetary assets = theft) …

- Bank of England extends quantitative easing to £200 billion (Guardian)

… and now he warns of the fallout (= inflation)!

Wake up Britain!

Mervyn King is a criminal and a perfect elite puppet, like Bernanke.

See also:

- UK Food Prices Soar Up To 58 Percent In Just 3 Years (Daily Mail)

- UK: Food Inflation May Rise 10 Percent Before Christmas (Telegraph)

- Bank of England’s Mervyn King Warns Over High Inflation (Telegraph)

British consumers should prepare for lingering higher inflation, the Bank of England Governor has warned, as latest figures show a sharp jump in food prices.

Figures from the Office for National Statistics showed a 3.4pc increase in the cost of food over the last year, with fruit being 10pc more expensive. The last year also saw a sharp rise in the cost of travel, which climbed an average 7.8pc.

Mervyn King, the Bank’s Governor, voiced surprise that prices are higher than he had expected in a letter of explanation to the Chancellor George Osborne. While the overall consumer prices edged down to 3.1pc from 3.2pc in June, it remains above the Bank’s own 2pc target, and the small decline will do little to ease the fear of some economists that a high cost of living will undermine Britain’s fragile recovery.

Mr King must write to the Treasury each month that inflation exceeds 3pc, and he said he is likely to have to send several more letters. Inflation will probably not return to target until the end of 2011, he said.

“Food price inflation has moved up strongly … and that’s perhaps a trend that’s going to continue over the next 12 months,” said Philip Shaw, an economist at Investec.

Today’s figures from the Office for National Statistics also showed that the Retail Price Index, a measure of inflation generally seen as the best gauge of the cost of living, was at 4.8pc last month. Again, though lower than June’s 5pc, it’s far outstripping any pay rises companies may be awarding.

Mr King has insisted that the price pressures are driven by temporary influences such as the price of oil.

Continue reading »

Tags: Bank of England, Economy, Government, Inflation, Politics, U.K.

Highly recommended reading.

The Greatest Depression is here.

When Fed Chairman Ben Bernanke admits to seeing an “unusually uncertain” economy ahead, it’s pretty terrifying to imagine what he’s really thinking. What John Williams envisions-and he’s by no means looking to the far horizon-is a systemic collapse, a hyperinflationary great depression and the cessation of normal commerce. Despite that bleak outlook, however, when the economist and editor of ShadowStats.com sat down for this exclusive Energy Report interview, he also had some good news.

The Energy Report: A few months back, John, you said, “if you strangle liquidity you always contract an economy and deliberately or not, liquidity is being strangled, resulting in sharp declines in consumer credit, commercial and industrial loans.” Does this mean it would spur more economic growth if banks actually started lending?

John Williams: It sure wouldn’t hurt. We’re still seeing contractions in liquidity, and that’s adjusted for inflation. In real terms, M3 money supply is down almost 8% year-over-year. It’s the sharpest fall in the post -World War II era. It’s not so much the depth of the decline in the liquidity or the duration, but the fact that the liquidity turns negative year-over-year that signals the economy turning down.

We had the signal in December of 2009 indicating intensification of the downturn, in this case, within six to nine months. We’re in that timeframe now and see softening numbers. People are talking about a weaker economy. Even Mr. Bernanke has described the economy as “unusually uncertain” in terms of its outlook. Wording like that from the Fed is a pretty good indication that something’s afoot. Continue reading »

Tags: Bankruptcy, Barack Obama, Depression, Dollar, Economy, Fed, Federal Reserve, Government, Great Depression, Healthcare, Hyperinflation, Inflation, John Williams, Medicare, Obama administration, Politics, Preparedness, Recession, Social Security, Stock Market, U.S., Unemployment, Weimar Republic

Chris Etherington, chief executive of wholesaler P&H, said: “I think this could be the beginning of the double-dip recession. This is really scary stuff.”

Again: This is the Greatest Depression! Prepare yourself now.

See also: Bank of England’s Mervyn King Warns Over High Inflation

The cost of food is likely to jump by up to 10 per cent before Christmas after dry weather drastically reduced the amount of winter feed that farmers could harvest, experts said.

Wheat: expensive. (Getty Images)

The price of milk, cheese, chicken, beef and pork and associated products are all expected to rise because the industry has been hit by soaring animal feed prices, a shortage of silage and poor harvests.

Food inflation is closely linked to overall inflation and some in the industry have warned it could push the economy towards a “double-dip” recession.

BOCM Pauls, Britain’s biggest animal feed supplier, has reported a 20 per cent increase in the price of raw material feed on last year

The cost of wheat used as animal feed has also jumped by 30 per cent.

The company warned that the price at which it sells feed to dairy, poultry, beef and pig farmers would have to increase by the same amount over the next three months, trade magazine The Grocer said.

It is possible that such a margin could be passed on to consumers, however, it is unlikely to be passed on in full. Instead, prices are likely to go up while producers’ and retailers’ profit margins are also squeezed.

The National Farmers’ Union said the dry weather had added to its members’ problems by slashing the yields of silage for winter feed by up to 50 per cent.

Food producers are already suffering from the high cost of common ingredients such as palm oil, cocoa and soya oil, which have risen by 39 per cent, 23 per cent and 14 per cent respectively since last year, according to Mintec figures.

Continue reading »

Tags: Economy, Food, Food Prices, Global News, Inflation, Recession, U.K.

Bank of England’s Mervyn King created £200 billion out of thin air:

- Bank of England extends quantitative easing to £200 billion

And now he warns over inflation. This is like nuking a country and then warn the people over radiation.

Elite puppet Mervyn King is intentionally destroying the pound, looting the people, through quantitative easing (Whereas the UK government is destroying the pound and looting the people through skyrocketing government debt.) and promoting the New World Order:

- Bank of England: US Faces Same Problems As Greece; EU Must Become A Federalised Fiscal Union With Central Power In Order to Survive

The economy is not facing stagflation, but the Greatest Depression.

Bank of England Governor Mervyn King has warned that high inflation will continue to erode earnings power through next year as the economy faces the threat of ’stagflation’.

Prices rises have consistently defied the Bank’s expectations of a slowdown, adding to pressure on households as wage growth remains weak and the Government introduces a strict austerity package.

The Bank’s rate-setters are charged with keeping inflation at 2% but the Consumer Prices Index benchmark has been above 3% throughout the year.

However, addressing a committee of MPs, Mr King suggested that they will be reluctant to try to curb the problem by raising borrowing costs from 0.5 per cent any time soon because of the weakness of the economy.

“There will come a point when we will certainly need to ease off the accelerator and return Bank Rate to more normal levels,” Mr King told MPs today.

“I look forward to that time because it will probably be a signal that there is a smoother drive ahead, with the economic outlook improving in a durable way. But I fear there is some considerable distance to travel before we can begin to use the word ‘normal.’”

The Bank of England’s Monetary Policy Committee (MPC), which slashed interest rates to a record low of 0.5pc during the depths of the recession, faces an acute dilemma on when to begin raising them. Not everyone on the MPC agrees with the Governor that the threats to the recovery present a greater danger than that of rising prices. Continue reading »

Tags: Bank of England, Economy, Global News, Inflation, U.K.

- Fed boss Ben Bernanke wary of political interference (BBC NEWS):

Politicians generally prefer holding interest rates low, as a means of stimulating the economy and boosting jobs.

‘Higher inflation’

“Such gains may be popular at first, and thus helpful in an election campaign, but they are not sustainable and soon evaporate, leaving behind inflationary pressures that worsen the economy’s long-term prospects,” Mr Bernanke said.

He made his comments in a speech at a conference in Tokyo on the future of central banking in a globalised economy.

“Thus political interference in monetary policy can generate undesirable boom-bust cycles that ultimately lead to both a less stable economy and higher inflation,” he said. Continue reading »

Tags: Ben Bernanke, Economy, Fed, Federal Reserve, Global News, Inflation, Politics, U.S.

- Renaissance 2.0: Lesson 1 - Revisiting American History - Financial Empire

- Renaissance 2.0: Lesson 2 - Revisiting Economics 101 - Debt

- Renaissance 2.0: Lesson 3 - Revisiting Civics 101 - Ownership

- Renaissance 2.0: Lesson 5 - The Emerging Global Empire - The New World Order

1 of 4:

Added: 26. March 2010

Lesson 4 (part 1) - The Culture of Empire moves into a deeper dialogue about the empire system we’re caught in. Part 1 addresses our wealth illusion, freedom illusion, exponential growth, inflation/deflation, and bankruptcies.

2 of 4:

Added: 26. March 2010

Lesson 4 (part 2) - Part 2 focuses exclusively on the issue of scale. As the debt-based empire grows, the scale of our system grows causing all sorts of problems related to the loss of meaning, community, freedom, and agency.

3 of 4:

Added: 27. March 2010

Lesson 4 (part 3) - Part 3 focuses on the issue of velocity. The velocity of money is a standard economic concept, but economists ignore the issue of human velocity caused by the system, which results in the loss of rest, joy, delight, and deeper issues.

4 of 4:

Added: 27. March 2010

Lesson 4 (part 4) - Part 4 focuses on the rise of narcissism, increasing pathology and oppression, and how the financial empire eventually replaces government

Tags: Banks, Debt, Deflation, Economy, Environment, Fed, Federal Reserve, George Soros, Government, Inflation, Politics, Society, TV, U.S., Wall Street

Added: 13. Mai 2010

Tags: Afghanistan, Apple, Bankruptcy, Banks, Barack Obama, Bonds, China, Commodities, Constitution, Consumers, Corporations, Debt, Department of Education, Department of Energy, Dollar, Dow Jones, Economy, Fed, Federal Reserve, Food stamps, GDP, Gerald Celente, Gold, Great Depression, Healthcare, Hyperinflation, Hyperinflationary Depression, Inflation, Iraq, Jim Rogers, Keynesianism, Marc Faber, Medicaid, Medicare, Meltdown, Meltup, Military, Obama administration, Oil, Oil Prices, Peter Schiff, Politics, Quantitative Easing, Ron Paul, Silver, Social Security, Society, Stock Market, Taxes, Taxpayers, Treasury, U.S., Unemployment, Wall Street, War, Yuan

‘A Bubble in China’ (Would be a nice title for a book.):

- Marc Faber: China May ‘Crash’ in Next 9 to 12 Months (Bloomberg):

May 3 (Bloomberg) — Investor Marc Faber said China’s economy will slow and possibly “crash” within a year as declines in stock and commodity prices signal the nation’s property bubble is set to burst.

People walk in front of advertisements outside a department store in the Xidan district of Beijing in April. (Bloomberg)

May 11 (Bloomberg) — China’s inflation accelerated, bank lending exceeded estimates and property prices jumped by a record, increasing pressure on the government to raise interest rates and let the currency appreciate.

Consumer prices rose 2.8 percent in April from a year earlier, the fastest pace in 18 months, and property prices jumped 12.8 percent, the statistics bureau said in statements today. New lending of 774 billion yuan ($113 billion), announced by the central bank, was more than any of 24 economists forecast.

Asian stocks fell, with the local benchmark index entering into a bear market, and oil and copper slumped on concern the government will move to cool the fastest-growing major economy. China should focus on preventing excessive increases in asset prices and liquidity after Europe’s almost $1 trillion loan package reduced the risk of another global slump, central bank adviser Li Daokui said yesterday. Continue reading »

Tags: Bubble, China, Economy, Government, Inflation, Politics, Real Estate, Yuan

See also:

- ECB Resorts to ‘Nuclear Option,’ Intervenes in Bond Market to Fight Euro Crisis (Bloomberg)

- European Central Bank Sleds The Slippery Slope (Forbes):

Despite the optimism in markets, the European Central Bank’s latest moves put it on a slippery slope, raising doubt about its credibility.

“I see that the European Central Bank will start buying Eurozone government bonds,” writes Stephen Pope, chief global equity strategist at Cantor Fitzgerald in London. “This is total, undiluted quantitative easing.”

It also represents backpedaling by the European Central Bank. “I recall Trichet saying he would never go down the route followed by the Fed and the Bank of England,” says Pope.  “Of course events can always force a change of mind but does JCT have any credibility left?”

What worries Pope is a question that is nagging many veteran market pundits: Where is the money going to come from? In the quantitative easing followed by the Federal Reserve and the Bank of England the money was created by simply expanding the balance sheets and literally printing money.

Pope says that the European Central Bank quantitative easing bond purchases will be “sterilized” so there will be no expansion of the monetary base and the ECB balance sheet.

Pope, quite understandably, says, “I still want to know where the money will come from.”

Tags: Bonds, Cantor Fitzgerald, Debt, ECB, Economy, EU, Europe, Global News, Inflation, Jean-Claude Trichet, Politics, Quantitative Easing, Stephen Pope

The ECB does not want to call it quantitative easing (= printing money = creating money out of thin air = increasing the money supply = inflation = tax on monetary assets = looting of the people) yet.

Interesting how the Federal Reserve, the Bank of England and the ECB (with the corresponding governments creating record deficits) are all using policies that rob the middle class and the poor:

“When a country embarks on deficit financing and inflationism (quantitative easing) you wipe out the middle class and wealth is transferred from the middle class and the poor to the rich.”
- Ron Paul

“The Federal Reserve System is nothing more than legalized counterfeit.”
- Ron Paul

The market is not ‘dysfunctional’, but all those stimulus packages, bailouts and quantitative easing make it totally dysfunctional.

The goal of the elite criminals is the New World Order:

- ECB President Jean-Claude Trichet calls for ‘Global Governance’ at the Council on Foreign Relations (Forbes)

The European Central Bank (ECB) headquarters in Frankfurt. (Bloomberg)

May 10 (Bloomberg) — The European Central Bank said it will buy government and private bonds as part of an historic bid to stave off a sovereign-debt crisis that threatens to destroy the euro.

The ECB wants “to address severe tensions in certain market segments which are hampering the monetary policy transmission mechanism and thereby the effective conduct of monetary policy,” the central bank said in a statement at 3:15 a.m. in Frankfurt. The announcement came less than an hour after European finance ministers unveiled a loan package worth almost $1 trillion to staunch the market turmoil.

Resorting to what some economists have called the “nuclear option,” the ECB may open itself to the charge it’s undermining its independence by helping governments plug budget holes. Four days ago, ECB President Jean-Claude Trichet said bond purchases hadn’t been discussed when members of the bank’s 22-member Governing Council met to set interest rates in Lisbon.

By deciding to “go in and buy sovereign and corporate debt, they crossed a line,” said David Kotok, chairman and chief investment officer at Cumberland Advisors Inc., which manages about $1.4 billion in Vineland, New Jersey. “The line between fiscal and monetary policy gets blurred.”

The euro jumped to $1.2982 at 8:30 a.m. in Frankfurt from $1.2755 at the end of last week.

‘Dysfunctional’ Markets

The ECB said it will intervene in “those market segments which are dysfunctional,” suggesting it views the surge in some of the region’s bond yields as unjustified and that it’s acting to stabilize markets and protect the 16-nation economy. Continue reading »

Tags: Bonds, Debt, ECB, Economy, EU, Euro, Europe, Global News, Government, Inflation, Jean-Claude Trichet, Politics, Quantitative Easing