As Democrats clash over whether or not to extend the Bush tax cuts, financial analysts are painting a rather grim picture. And it’s one that really needs to be seriously considered before just letting the Bush tax cuts expire.
The National Inflation Association has released an interesting video about a bond market bubble. In a nutshell, while the Federal Reserve seems to be worried about deflation, the rest of the country is getting pounded with inflation, and we haven’t even come close to seeing the worst of it. It also touches on the fact that the jobs that the stimulus created are “dysfunctional” along with the rest of the economy that has been getting built over the past 30 years. For those interested to view the video, it’s to the left.
A few months ago Damon Vickers, chief investment officer of Nine Points Capitol Partners told CNBC that the increase in oil and gold and the weak currencies are worth taking note of. In addition, he is unsure how the “huge wage disparities” will eventually be resolved, but suggested that, “It may resolve itself in some type of global currency crisis” which would then lead to, “an alignment under a global world government, a new global currency, and a New World Order.” In other words, a One World system which eventually ushers in the anti-Christ (Beast) mentioned in Revelation chapter 13.
Just a brief reminder here that Europe has been getting pounded with severe storms, and parts of France and Belgium are the latest victims of flooding, according to a www.upi.com article on Sunday. Seeming as one of France’s chief agricultural products is wheat, and for Belgium, grain, this has the potential to bring on another increase in the price of wheat and grain in the commodities markets, especially since Russia has decided that an export ban on its grain crop is necessary because of wildfires and floods that damaged about a fifth of its crop over the summer.
Other countries suffering from flooding include Vietnam and Columbia. According to a www.washingtonpost.com article on Wednesday, Vietnam has had “up to 32 inches” in rain that has “pounded the region over the past four days, forcing the evacuation of nearly 40,000 people.” According to www.bartelby.com, Vietnam’s main exports commodities include crude oil, marine products, rice, coffee, rubber, tea, garments, and shoes.
As for Columbia, a www.cnn.com article from Friday said that, “Columbian President Juan Manuel Santos has declared a state of emergency in 28 of the nation’s 32 departments because of heavy rains and flooding that have affected some 1.2 million people. He called on the international community to help and said the capacity of the Columbian government is overwhelmed.” Keep in mind that the US is supposed to be an ally of Columbia. A quick glimpse at www.bartelby.com reveals that Columbia’s main exports include petroleum, coffee, coal, nickel, emeralds, apparel, bananas, and cut flowers.
With Vietnam and Columbia now being plagued with floods, this suggests that there will be a drop in the availability of some of the items that they would normally have available for export.
Unfortunately, 2011 may be getting off to a rather rough start considering the anticipated shortages on the global market. Hopefully, it won’t be further complicated for US families because the present congress allows the Bush tax cuts to expire.