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Classic Videos: Meltup

by John Rubino on May 14, 2010 · 12 comments

The National Inflation Association is back with another long, well-made, apocalyptic video. The subject is the “recovery” and its inflationary implications: “The truth is, our economy is not recovering. Prices are only rising because of inflation. Our economy is currently experiencing a melt-up…Government spending is so far out of control that if Americans were taxed at 100% of their income it wouldn’t be enough to balance the budget.”

  • http://foxnews Tim Carson

    Wow! I knew I was against expanding government (and spending) and for tax reductions for both business and individuals and the so called “secret society of politicians, bankers, mega-company CEO’s”. What an incredible mess we have gotten ourselves into!!! I will forward this email to everyone I know and just wish I could put it on a standard DVD so even the poor people of this country could see it on their TV’s.

  • Henry Coulter

    I just am buying s’more silver. Screw everyone else, I’m tired of having people look at me like I’m some sort of freak whenever I bring up the suject of inflation and limited guvmint. The so-called concervatives are the worst, they are all for a huge military budget, world domination, patriot act, scanners at airports, attacking Iran etc. But if you really want to get them rilled-up tell them that gay people should have the right to marry each other.
    The liberals are not much better but at least they mean well.

  • Brad Thrasher

    This is so easy to fix. Obviously the problem is the cost of our military and entitlements.

    We have to pay the front end costs of war. but this nice, nice picking up the peace tab we’ve done since the end of WWll is beyond nuts. We’re very good at conquering but after you conquer, you loot. We just give it back to them and give them money to rebuild. Then these ingrates turn around and trade with our competitors.

    We Americans have become effete war mongers. If you’re not going to take their stuff and their good lookin’ women what’s the point of going to war?

    If the Iraqi’s want to give drilling rights to the Russian and Chinese state run oil companies big whoop. We merely impose a 5% royalty payable to the U.S. Treasury on every barrel they suck out.

    Geez, trust the U.S. gubbment to take the profit and the fun, you can’t even rape anymore, out of war.

    Fixing entitlements is even easier. Everybody gets audited every three years. If it turns out you took more the commonwealth than you put in, you die. Gently, humanely of course. Nothing more than a shot in the arm is needed. No sense being an a-hole about it.

    There problem solved.

  • Neanderthal Conservative

    We have become a nation of whiners. Tim’s comment says it all, “so the poor people could see it on their tv’s” Our ancestors, even in their wildest imaginings would never have enjoyed the level of prosperity that we now experience. Genuinely poor people don’t have tv’s. The credit crisis is fueled, in part, by people who defaulted on loans given in good faith. Henry, I’m tired of people like you characterizing liberals with, “at least they mean well…” You need to get out more. I’m a conservative who loves his family, helps the guy who breaks down along the road and I give generously to several charities because God has been very kind to me. And, I know a lot of conservatives who are the same. In addition, your comments about scanners at airports speaks loudly of the fantasy world you inhabit. Apparently, you haven’t heard that there are these people who want to kill us. Finally, please don’t give me that crap about these people hating us because we’re a rich nation. Don’t forget Bin Laden came from wealth while people like Arafat stole most of the money given to the PA. I’ve traveled throughout the Middle East extensively (Israel, Jordan & Egypt) and if you don’t think Iran will use their nukes then, Henry, you need to wake up and smell the falafel.

  • Bruce C.

    This video was interesting and entertaining but (once again) it suffers by being overly simplistic and sensational, which leaves it open to criticism from skeptics. It also was a little too light on specific things ordinary citizens can do to counteract the probable future that’s implied. Most voters opposed the TARP bailouts, the Omnibus bill, the GM bailout, the underwriting of Fannie and Freddie, the Health Care Reform bill, etc. What else could have been done, and can be done now? The video didn’t say.
    (Strangely, even some of Thrash’s suggestions weren’t offered.)

    The main message from the video is that inflation, even hyper inflation, is coming. On the one hand it seems to imply that such inflation is inevitable, that our debts are too large to ever pay off simply by economic growth, but then it warns against the same if policies aren’t changed drastically and soon. So which is it?

    In my opinion, the politicians are going to keep the train going until it runs off the track. Politicians almost never act preemptively. They’ll only act once the crisis is obvious, even though that will be too late. I think that’s especially true since the “official” voices seem unconvinced that our debt is that big of a problem (Investors are eager to buy our Treasuries, long-term interest rates are down, inflation is mild, the dollar is getting stronger, etc. What’s not to like?)

    Here’s a back-of-the-envelope calculation of what’s happening:

    The Federal deficit is about $1,500 Billion and interest payments on our debt is about $500 Billion. That means about $1,000 Billion is entering the economy/money-supply via Medicare/Medicaid, SS, and all the rest. Ordinarily that would be inflationary, but credit is also decreasing, which is deflationary. Therefore, as long as this balance exists, inflation is benign. (Actually, the M3 money supply is decreasing now). However, when the credit destruction ends or slows down, the money supply will start expanding, and that is when inflation will show up in prices.

  • Duane

    A historian’s perspective on the “futures” for America, China and the rest.

  • Brad Thrasher

    Hey Duane,

    While reading you and Bruce C.’s post it occurred to me how common it is becoming that people from different disciplines and different points of view are examining this financial cycle and arriving at very similar conclusions.

    Hey Neanderthal Conservative,

    As for all the whining whiners, that is merely a very human reaction to the politics of privilege; practiced equally well by conservatives and liberals.

    Anyone who believes that gay marriage is a threat to my hetero marriage hasn’t met my bride of 25 consecutive years.

    And why is a single mother who secures protein for herself and her children via the WIC program a welfare bum and a bailed out banker somehow isn’t?

    All the best guys,

  • Bengals

    Well, some are throwing in the towel on the U.S. altogether, namely, Jimmy Rogers: http://miningstocktalk.com/mining-stock-talk-interviews-jim-rogers/.

  • Brutlstrudl

    ATTENTION: The author of this script is Jonathan Lebed. Doug Casey says that as a teenager, he ran a penny stock pump and dump scheme and was nailed by the SEC ( they actually got somebody ). That said, it is a good video and that’s coming from a deflationist.

  • patricio cobos

    Terrific report!

    Thank you

  • Danny

    Did the last person actually mean “terrific” or “terrible”. I have a feeling that many people will get burnt buying gold, as they are totally buying for the completely wrong reasons right now. If and when the tide changes, you guys will be waiting for your hyperinflationary collapse that will never come.

    Keep buying suckers. Keep buying.

  • Barbabus

    Dearest Danny!

    History is agaisnt you, sorry but its just a fact.
    Incidentally, history also shows that gold and silver are the best investments in an deflationary environment as well as an inflationary.

    Gold and Silver have been stores of value for over 6,000 years – another very simple fact.
    As you demonstrate so well, the problem today is that many people cannot calculus 1+1
    I wonder who who is the sucker?

    My very best to You!

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