Inflation Nation - Prepare For The Coming Hyperinflationary Dollar Collapse

Dammit.

TILB has been trying to post less frequently and to have those infrequent posts avoid frustrating topics such as the destruction of our economic and social future. You can understand that.

I've established many times over that nobody cares, so why even keep banging the gong...particularly when it seems I'm banging it with my forehead instead of a mallet?

As an aside, friend of TILB and thief (before I invented it) of the phrase Tooth Fairy Economics Tom Woods makes several appearances in this video as do several other TILB mancrushes like Ron Paul, Peter Schiff, Mark Faber, and Uncle Jimmy Rogers.

This is the best video I've seen since Chris Martenson's Crash Course collection (someday I'll post about that video collection - if you haven't watched it yet, you must stop everything you're doing and spend a few hours watching immediately - link here).

I've been meaning to sit down and write more about the value of money, why price deflation is the natural course of the world (a good thing, btw!), and why not all GDP is created equal, but honestly, it's an emotional drain to reflect on and write about these ideas and it requires more of my head banging the gong. But I'll get to it, because while I'm sure nobody reads this, much less cares, I find the anguish and process of putting myself through it strangely beneficial.

In any case, watch this video and watch the Crash Course. As the great Cypress Hill has warned us so many times, "when the shit goes down, you better be ready...YOU BETTER BE READY!!" Indeed



PS: Please do me a favor and buy some actual, physical gold. It's for your own good.

Our Peter Schiff Man Crush Grows

Watch Connecticut's refreshing senate candidate Peter Schiff just absolutely embarass this poor Columbia professor David Epstein that espouses mainstream "Keynesian" economics in this excellent debate. Epstein plays a perfect foil to Schiff in this long, thoughtful debate. I think the main lack of understanding of mainstream economists is a fundamental lack of understanding of what "money", productivity, and the pricing system really are and what they serve. This leads to all sorts of decisions to promote government deficit spending as "cures" for economic ills without the understanding that the government does not have a capital base to invest from without first taking it from the private market. This perpetuates and compounds the problem, preventing healing.

Enjoy.

Inflation Vs. Deflation: Peter Schiff Gives The Definitive Interview

Peter Schiff apparently agrees with The Singularity thesis. This is the best interview I've heard about the inflation/deflation argument.

Schiff comes out on the side of inflation. He notes that deflationists are right, but only if they price assets in gold which is what their set of comparable history is relative to. Gold can't be printed and so credit collapses and their natural outcomes should be measured against that benchmark, rather than fiat currency.

Schiff also addresses why the U.S. will not be "fortunate" enough to have the Japan outcome (as TILB has said several times, Japan is our upside case). The differences are stark and important: Japan was a creditor nation, Japan had huge government and private savings, Japan had a budget surplus, Japan was a net exporter, the rest of the world didn't slow down with Japan, Japan's underlying economic engine remained robust throughout the period, etc., etc.

Enjoy.

The Investment Linebacker Just Saved Or Created 491 Jobs

We stand by that 491 number until we are otherwise proven wrong.

Oops, it turns out someone is actually going around trying to verify these bogus jobs "saved or created" numbers and discovering that the numbers are exactly what we all inherently already knew: they are a fantasy.

"I am shocked, shocked that gambling is going on here."

Specifically, The Sacramento Bee has been busy researching the 26,156 that the Cal State University system claims to have created or saved with their share of Federal stimulus money. Only one problem: it seems only a fraction of those were actually ever at risk - so how can they be saved or created if they never would have been lost?

So what?

TILB guaran-damn-tees you that nobody cares that The Administration has no ability to prove the accuracy of its claims. Yet that does not seem to matter.

So what if the whole number is a fraud? So what if those jobs that actually are "saved or created" are really stolen or destroyed in other areas of the global economy*? Who even cares? Our president gives great speeches, after all. What else could you realistically hope for in a leader? Hint: see video below for an answer - then visit www.schiffforsenate.com.

Anyway, here's a link to the Sac Bee's article on the Cal State reporting debacle.

* Just think about it, the capital used for the stimulus program comes from three primary sources: 1) explicit tax dollars; 2) borrowed money via Treasuries (e.g., China lending us money); or 3) freshly printed money (which is simply the theft of some value from all pre-existing money). The implication of this three source limit means that in order to "stimulate" the economy, we are actually taking money or wealth from other parts of the economy.

Who is more likely to productively deploy wealth into job creation: private citizens or 500 odd horse trading politicians inside the beltway? The answer is obvious on its face. Thus we know that stimulus is actually the opposite: it is the suction of capital/wealth out of generally productive hands and redeployed by generally non-productive hands.

It is nearly universal that stimulus programs cost jobs always and everywhere.


We can do better than the status quo.