The hyperinflated United Goldilocks Matrix

Inflation is over 11% and government expects us to believe we have the lowest inflation in 50 years. They are not even believable liars. If you remember our government and those on Wall Street and CNBC told us over and over that we had reached the bottom of the real estate market. Now they tell us we may have a little farther to go in what will be the worst correction since the 1930s. Our economy has an inflation problem and the only resilience we see is the result of massive amounts of money and credit being injected into the economy. That is the result of a 15% increase in money and credit and a wide open discount window. This is how economic growth is being manufactured and the result is hyperinflation. [...] The Fed doesn’t care about inflation - they just lie about it. They have abandoned the dollar, so we see a good chance of another ¼% rate cut on December 11th. [...] The financial blood will flow for sometime to come. Again, this is lots of ammunition for the Fed to lower rates. At 4-1/2% presently they could drop another point to 3-1/2%. Considering all the other problems we could see the dollar at 50 on the USDX. The credit crisis will last years, not months. [...] Nobody believes our government or Wall Street any more, and gold will now forge higher no matter what machinations the cartel throws at it. The pros can now see where this is all headed as the terrifying and inexorable march to financial oblivion continues unabated in the United Goldilocks Matrix, where some people are starting to wake up from their slumber in their cartel-created pods to a nightmare beyond their wildest imagination! Precious metals and their related assets are now the only place to be, so take your positions immediately or face utter financial annihilation.

~Bob Chapman, International Forecaster

Fed Rate Cut = US Currency Cancer

The USD hit a new all time low against the euro but has not breached the $1.40 yet. High yielding currencies, such as the AUD and NZD, were again in favour.

The dollar has fallen to a new all time low mark on the U.S. Dollar Index at 79.091. The notion that the U.S. dollar or U.S. treasuries or bonds are safe haven currencies or assets is likely to be seen as very erroneous in the coming months. Lowering interest rates will make the United States less attractive for overseas capital.

George Soros's investment partner, investment guru Jim Rogers told Bloomberg News that under Chairman Ben Bernanke, the Fed is helping Wall Street at the expense of everybody else. "If Bernanke starts running those printing presses even faster than he's doing already, yes we are going to have a serious recession," Rogers said. "The dollar's going to collapse. The bond market's going to collapse. There's going to be a lot of problems in the U.S."

Source: Gold Investments Market Update

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Something has to give with the current and ongoing financial chaos. What entity do you think will be sacrificed?



1. The economy
2. The real estate market
3. Politicians
4. The Fed
5. The stock market
6. Hollywood
7. Britney Spears
8. The Buck

I vote nos. 3 and 4, but that’s not likely. What will the obvious answer mean to you in the long run? I guess we’re back to talking about the dollar once more. Do they allow visitors in hospice? Gold, silver, and real asset investments will reap the benefits of the ongoing dollar carnage. Next week, we’ll delve deeper into what the dollar woes actually mean to you and your family. [...] The dollar is due a bounce higher in the very short term. Those who successfully shorted it now have to buy it back to lock in profits. It should then resume its downfall.

by Dr. Russell McDougal, 19 Sep 07