Big changes are all around us everyday, yet most folks don't seem to notice and/or care.
Lately, prices of many commodities have skyrocketed. "The Fed" pumped $600 million into the world economy last week, yet most people either haven't taken notice or haven't bothered to think it's important enough to comment on in conversation.
"The Fed" is really the world bank. The World Bank in Geneva is simply a loan shark to the third world. The Fed is what really controls the action. The G20 summit in Asia this week has our president and several others in his administration taking a beating from abroad for this influx of US dollars into the world economy, making exports from just about everywhere worth less, all the while making US exports worth MORE!
Look, I'm all for exporting to higher value. But does Fed Chairman Bernanke realize how his actions effect every day Americans at home? I know he does, but in from his big ass mansion, what does he care?
Gas went up, as did other petroleum related products.
Gold is insanely high right now. To all the people who sold their gold two years ago: neaner neaner neaner! Should have held it.
Next? Food prices will spike. Except for government subsidised corn derived products (like all meat, and most other stuff with corn based ingredients, like anything in a package haha). This will make the problems with the American food supply even worse, as more people will turn to horribly bad for you subsidized foods without even realizing they're buying government sponsored corn by the bushels into their homes. Why buy a head of romaine or a bag of baby carrots when you can get a double cheeseburger at McDonald's for the same price?
So, how do moves like these effect our future as average, everyday Americans? The truth is, no one really knows. Greenspan convinced us all that our houses were banks to borrow from, always safely increasing in value and a very secure investment, like long term mutual funds or related securities. We all know how that turned out.
Our current Fed chairmen has created a more cautious culture, and I'm happy for that, because this group of Americans, hardened by the BS of 2008 and 2009, are not going to just "play along" like they did for Greenspan.
Here's an example... Auto companies reported profits this quarter, and GM is even going to make an IPO! Guess what is going to happen if gas gets real high and food gets expensive? Americans will turn back to saving money, and the car companies will once again be in the hole. Their only hope is to be efficient manufacturing so they can turn a profit on smaller cars. I promise that instead of bitching about gas prices, Americans will either hold their current cars or purchase small ones. The SUVs that aren't fuel efficient (most of them) will just sit and rust away on a lot somewhere, and then sold at a huge discount later on to clear the lot for the next model year vehicles. Then, these fancy profits being made will plummet, and GM's brand new stock holders will sell out so fast the remaining holders will have lost all their money. (Psst: we all should have bought Ford stock in 2008. It's increased by magnitudes since hitting an all time low of around a dollar).
What about other changes in our world? Are people noticing?
If you should stumble upon this, tell me if you think people around you are noticing the same changes you are.
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