I am so thankful that we are in a recovery because, if we weren’t, the numbers would be really bad!!!! In a recent article on CNNMoney.com, Wal-Mart CEO Mike Duke stated that Wal-Mart shoppers were running out of money. “We’re seeing core consumers under a lot of pressure,” Duke said at an event in New York.
“There’s no doubt that rising fuel prices are having an impact.” (Source)
Wal-Mart shoppers generally do the bulk of their shopping at the beginning of the month, according to Wal-Mart statistics, as they generally live paycheck to paycheck. The end-of-month sales for Wal-Mart are decreasing rapidly, indicating that people are running out of money quicker. Rising fuel prices result in higher prices across the board in food, transportation, heating, manufacturing—HIGHER FUEL EFFECTS EVERYTHING! Inflation affects people living at the margin first, then, it’s a trickle-up effect that impacts all of society. The ugly result is that the financial and economic problems will ultimately lead to social chaos and disorder (like Greece—except worse). Fuel-flation, food-flation—call it what you want— rising prices are a symptom of inflation. The real culprit is an increasing money supply. Too much money means the currency is devalued, and you will have too much money chasing too few goods, thus resulting in higher prices.
In a speech last week, Ben Bernanke said, “A stable currency will lead to a strong economy.” Really? REALLY? If this is what he believes, then he is intentionally trying to destroy the U.S. economy. The Federal Reserve is printing the living daylights out of the dollar and eroding our currency which, in his own words, is OPPOSITE of a stable economy. So which is it, Ben? Do you want a strong economy, a weak economy, or are your lies just catching up with you? Regardless, as the Wal-Mart story shows, we are all starting to feel the effects of bad public policy. The mayhem will spread, and gold and silver know it. Thus, a HUGE RUN-UP in metals prices. We are on the verge of an inflationary collapse. Prepare, pray, and get ready. We are seemingly at the edge of a cliff.
