Special report on hyperinflation 2012

There is nothing the Fed can do to have meaningful positive impact on the economy.  There is nothing the Fed can do to make the U.S. banking system healthy.  What Mr. Bernanke has done has been little more than trying to delay a day-of-reckoning for the banks and the financial system.  Keeping the banking system sound is the Fed’s primary responsibility; fostering sustainable economic growth and contained inflation are secondary considerations.  The quantitative easings were an effort to provide the banking system with adequate liquidity, but the related actions were sold to the public and the media as an effort to boost economic activity.  Future Fed “stimulus” actions should be of a similar nature.
By John Williams (ShadowStats.Com)

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Pater Tenebrarum's: Lose Liberty and You Will Lose Your Civilization – Big Brother is Here

Nowadays the snooping and repression is increasingly shifting from the 'security' sphere to the financial sphere. 'Financial repression' – a term originally coined be Ken Rogoff and Carmen Reinhardt to describe the tendency of governments to try and 'inflate away' their debts – is taking on ever more sinister shapes. In Italy, the Monti government has begun to control the spending habits of its citizens to a never before seen extent (hat tip to 'Das Gelbe Forum' in Germany). Its crackdown on alleged tax evaders has so far produced 23 suicides by people who were either utterly ruined by the State's demands for back taxes owed or otherwise fell victim to the economic crisis.

Now there is the so-called 'spesometro', whereby the government creates a map of all consumer spending in Italy, correlating it in seconds with tax payer information. If anyone buys more than he should be able to buy according to his tax return, the 'agenzia delle entrate' soon shows up and asks him to explain how he was able to indulge in such spending. Savers must be able to provide a time-line of several years detailing how and and how much they saved when and why. Anyone who has not been overly fastidious with keeping records of every detail of his financial life is thus in danger of being fined if he buys 'too much'. Given that Italy has a very high private savings rate, a great many perfectly innocent citizens will probably be ensnared by the 'spesometro'.

By Pater Tenebrarum (Acting-Man)

Reward savers and retirees−Don’t penalize them

....."If you have your own currency, you don’t have to default, you can just inflate your way out of it. But inflation means you create a set of winners and losers. It doesn't do you any good if you have 6 percent inflation but interest rates go up 10 percent. That’s actually a drag on the economy, those are very high real interest rates. So what you have to do is create negative interest rates where the inflation rate is higher than what the savers get.

So basically you punish the savers who live on what the banks can pay, either directly or indirectly, and get the inflation going so that inflation is higher than what you’re making and that means you are losing money in real terms.


Now, the problem with inflation is not everybody loses, but there are winners and losers. The losers are the savers and retirees, people on a pension, people like your doctor client who are going to see their wealth erode unless they invest in gold or do something to defend themselves.


The winners are banks, hedge funds, speculators, people who got into gold, people who understand what we're talking about and do something to protect themselves. So it’s not as if inflation is spread evenly across the whole population; what you have is a bunch of winners and a bunch of losers. So the losers generally speaking are the savers".

By  Jim Rickards