01.25.08 W.U.I.N. (Whip UP Inflation Now) Posted in Old Posts at 12:51 am by Administrator It was anything but the standard State of the Union speech. Instead of congratulating himself on the achievements of his young and troubled Administration, Gerald Ford adopted the somber tone of a wartime leader calling for an all-out effort to repel the enemy. Instead of skipping lightly over a broad spectrum of national and foreign policies, the President concentrated almost exclusively on specific means to counter the worst economic slump since the Great Depression, the nation’s almost 14% rate of inflation and the U.S.’s dangerous dependence on cartel-controlled foreign oil. Displaying the blunt candor that is his most politically attractive quality, the President proclaimed himself the bearer of “bad news,” declared flatly that “the State of the Union is not good,” and announced that he did not expect “much if any applause.”* Then he unfurled an economic and energy program of considerable scope, great complexity and huge risk. Essentially, Ford plans a three-stage operation on the severely sick economy: Stage 1: A quick infusion of $16 billion of new buying power—$12 billion to consumers in rebates on 1974 taxes, $4 billion to corporations in higher tax credits on purchases of new machinery. Stage 2: Imposition of $30 billion in new energy taxes that will force every citizen to pay more to drive a car, heat a house or turn on a light switch. Stage 3: Recycling of that $30 billion back into the spending stream, chiefly by permanent cuts in corporate and individual income taxes. If the policy works as Ford hopes, sales would revive, unemployment would moderate and the nation would be much better able to withstand another cutoff of foreign oil, since Americans would be compelled by higher prices to reduce their prodigious waste of energy. But if the program fails, the consequences could be dire indeed. The $16 billion in rebates and tax credits might be too weak to jolt the economy out of its alarming slumpflation; in that case, the nation could suffer a prolonged agony of unemployment rates higher than any since before World War II. In addition, the higher prices for oil and natural gas that Ford plans could restore the raging inflation that is only now beginning to relax its debilitating grip on the U.S. -Ford’s Risky Plan Against Stumplation, Time Magazine, January 27, 1975 Sound familiar? Today we heard the happy, happy, joy, joy news about a new economic “stimulus program” which will cost $150 billion (almost ten times the amount above) to provide extra money for lottery tickets and cigarettes to all Americans. While driving home from a long day tonight, I had the pleasure of listening to CBS News on the radio and some typical American saying in reaction to the proposal “this is great, I’ll redecorate my baby’s bedroom or take a vacation.” Ugh. Obviously the majority still does not get it. So a little trip down memory lane. For those who remember the button at the top of this article that stood for “Whip Inflation Now” these times will seem familiar and disturbing. The concept that creating more money (stimulus) to cure severe indebtedness (dead money that will never be repaid) has been tried so many times in history, it’s not even funny. So now the answer, in an election year of course, the current administration and the panic stricken Congresscritters have all elected to break is out the old play book, change the title, blow the dust off and sell it again to the American public. Just yesterday the CBO reported the estimated 2008 budget deficit would be in excess of $250,000,000,000.00 which does not even include the $150,000,000,000.00 proposed today. This means the Central Bankster system must create almost $400,000,000,000.00 in new money to monetize the debt in addition to the $53,000,000,000,000.000 which is hanging over our heads that David M. Walker the Comptroller General of the U.S. has been warning about. I used the long hand form of the numbers not to make your eyes bug out to but to point out the absurdity of the debt we owe the world. And the clue everyone should take from this is the absolute boiling point we have passed which has upset our true central bankster, the rest of the world. So as we Whip Up Inflation Now instead of W.I.N. as we used to, the prospects for a huge stock market rally during the election season have improved as I predicted back on December 28, 2007. We will correct in our equity markets some 10-30%, flush out some weak banksters and then after a period of forced acquisitions and dilution to the health of our financial structure resume a new speculative bubble since there’s nothing other than stocks and commodities worth investing in and the Chinese Communists are acquiring hard assets in preparation of the storm that is about to hit. Unlike other bubbles bursting, the wizards behind this one are telling everyone that the party will continue on one hand and on the other acquiring gold and exchanging their investments out of dollars at a blistering pace. So watch what they do, not what they say gang. The acceleration out of U.S. assets is about to turn into a tidal wave, set to crest some time in 2009 or 2010. To track the race to the exits, start watching the TIC report, the ten and thirty year bond yields and of course, any reports of foreign liquidation of American real estate holdings. Once you notice the trend accelerating to a fever pitch that our own banksters can not control (Translation: The Federal Reserve buying more notes than these nations sell plus large purchases at new auctions) then the game is up. The foreigners no longer believe we will defend our currency and as many experts have declared, once we cross the Rubicon on the U.S. Dollar Index at 72.00 with volume and stay there, it’s all over but the purchase of wheelbarrows for shopping trips.
