Sunday, November 27, 2011

Prepare for Global Inflation: The Euro Money Printing is About to Begin

The Ben Bernanke is already printing money, China has printed so much money that price inflation is likely over 20% and it appears that the eurozone is about to join the happy printers.

France and Germany are planning a quick new pact on budget discipline that might persuade the European Central Bank to ramp up its government bond purchases, Welt am Sonntag reports.

Echoing a Reuters report on Friday from Brussels, the Sunday newspaper said the French and German leaders were prepared to back a deal with other euro countries that might induce the ECB to intervene more forcefully to calm the euro debt crisis.

The newspaper report quoted German government sources as saying that the crisis fighting plan could possibly be announced by German Chancellor Angela Merkel and French President Nicolas Sarkozy in the coming week.

Bottom line: The recent failure of the German debt auction has changed the tune of German Chancellor Merkel and she is now in line as an inflationist in addition to her demands for a more centrally planned eurozone. It will be the worst of all worlds for the EZ people, climbing price inflation and a more centrally planned government.

Globally, we are likely to have the first ever worldwide inflation.


  1. Why do people pay taxes? Fools.

    Whenever one buys a government bond, they are enslaving (stealing their labor output) their fellow man. Those people should be removed from civil society...Sellers and Buyers. Those in government bonds are buying and selling human livestock.

  2. Anonymous at 8:08 AM:

    Well said!

  3. Paul Craig Roberts compares the recent failed German bond auction to the successful Italian bond auction that took place two days later (see especially paragraphs the 4, 5 and 6): Bankers Have Seized Europe: Goldman Sachs Has Taken Over.

  4. My apologies. I didn't mean to sound like an advertisement for Paul Craig Roberts in my previous comment. I should have prefaced it by saying that I completely agree with your accurate and succinct analysis in this blog post. I have had to resist an overwhelming urge to forward it to everyone I know here in western Nebraska. Why? Because they don't want to hear it. Not a single one of them, conservatives and liberals alike (although the latter are far more arrogant, self-righteous and set in their ways, because they think they are enlightened intellectuals). I have nearly alienated all of them over the past few years by trying to warn them to prepare. This alienation has taken place even though I took very careful pains to warn them in as unemotional and analytical a way as possible. It took me several years to learn my lesson (and I still have not fully learned it): These people -- that I thought were my friends, and that I thought were smart and/or open-minded, and that I thought didn't live in a fragile fairyland reality, and that I thought would continue to trust me as much as they always used to (I was well respected in the area of historical research long before I became a student of Austrian economics in 2007-2008) -- are clearly not worth the effort. It has not been easy admitting this to myself. It has also not been easy admitting that they now seem to think that I've gone off the deep end (which, understandably, makes me somewhat indignant). The other day my closest friend (which isn't saying much in this unfriendly town) actually told me that her family's economic wellbeing was none of my business and that I should keep my "opinions" to myself. She strongly implied that I couldn't possibly know as much as her investment-guru husband (who is a Keynesian and MSM addict to the hilt, and who thinks that "conspiracy theories" are only for alien abductees, "Trekkies" and other science-fiction addicts), because his investments have made them fairly well-to-do over the course of their marriage. She told me (in so many words) that my longstanding advice to invest in gold and silver is completely irresponsible and amateurish. I don't think she realized how rude and hostile she sounded. She behaved as if I was being impertinent for showing genuine concern for her welfare (maybe she is afraid, waaaaayyyyyy deep down, that I might be right, but admitting that to herself, much less to me, might shatter her fairytale view of reality -- and maybe also her view of her conceited husband's supposed intellectual superiority).

    In conclusion, I have often felt like Gene Hackman's character in the Poseiden Adventure, when he is trying to tell everyone to climb the giant Christmas tree in order to get out of the ballroom. Most of them stubbornly refuse to listen. Finally, he realizes he just has to save himself and let them go down with the ship. Unlike Hackman, I probably won't make it all the way out of the ship, but at least I can say, "I told you so," as the ship sinks to the bottom.

  5. So, treasury debt market should be in the same market as pork bellies and live cattle....