Home > Knowledge has vagina dentata so don't you fuck with it, Politics or: the art of looking for trouble > Fact Checking The National Inflation Association And its Hyperinflation Fear-Mongering.

Fact Checking The National Inflation Association And its Hyperinflation Fear-Mongering.

This is a response to this youtube video with over a half million hits, posted by the mysterious The National Inflation Association:

http://www.youtube.com/watch?v=eb1n1X0Oqdw

First off, it’s always good to ask who is funding the organization and the video production.   From their website http://inflation.us/ (Ooh,  dot us. Flashy domain name. Very patriotic.) I can’t say for sure.

But here’s a good guess:

“One of our missions at the National Inflation Association is to discover and profile companies that we believe will prosper in an inflationary environment. Typically we will bring to you producing, profitable, Gold and Silver companies with strong balance sheets. We believe these stocks have a chance of becoming some of the best performers of the next decade.”  Most of their 22 companies on their stocks page are gold or silver companies.

Now I’m not going to bash Gold and Silver as a means to hedge long-term financial risk, because I’m not an economist.  But here’s an article that does:  http://www.huffingtonpost.com/alan-schram/is-gold-a-good-inflation_b_443927.html “Gold does not generate cash flow (indeed it has a carrying cost for storage, insurance etc.) and does not have any intrinsic value, and therefore it is of dubious value as a long term investment.”  The same thing that gives gold its value, faith, is the same thing that gives money its value.  Makes sense to me.

Onward to the youtube video.

Commentary:

I’m not going to fact check all the numbers, but a lot of the statistics in the video seem to be reasonable.  The video also cites some legitimate facts about the financial crisis and legitimate concerns about the US’s ability to pay for impending SS and Medicare.  But there are a lot of interpretations of these statistics and facts that are misleading, fear-mongering, and just plain wrong.

9:45  “The average American might have to eat less and stop air conditioning and heating their home just to afford gas for their car.”

I like the word ‘might’.  And aren’t we obese and energy-hungry anyway?   Doesn’t a third to a half of our food go into the garbage and not into our mouths and out our ass?   Maybe we shouldn’t have killed the electric car, before the lithium ion battery took off.

10:40  Peter “Dr. Doom” Schiff calls Social Security a Ponzi scheme.

While there are parallels between the concepts, it’s not fundamentally true, because technological advancements have exponentially increased economic output over the last century.   According to Michael Mandel of Business Week:   “The U.S. population has more than tripled since the early 1900s, while the U.S. economic output has gone up by more than 20 times… Assuming that technological progress continues over the next 70 years, and output productivity growth continues over the next 70 years, the finances of Social Security are relatively easy to fix. A fairly minor cut in benefits, combined with a relatively small increase in taxes, will bring the system back into balance again. (the latest Social Security report projects a 75-year deficit of $4.3 trillion. That sounds like a lot of money, but over 75 years it’s roughly $60 billion a year…not chicken feed, but not overwhelming).“

13:18  “The only way our economy can truly recover [from the crisis caused by trillion dollar deficit] is for the government to dramatically slash spending across the board and eliminate unnecessary departments like the Department of Energy… and the Department of Education.”

The video tries to link the rise in private tuition costs to the rise in Dept of Ed. Spending.  I don’t get it.  It also fails to mention that the Dept. of Ed only has 5,000 employees and that most of the increase in spending was because of Bush’s No Child Left Behind.  And Dept of Energy?  Um, isn’t the one that deals with our nuclear waste?

15:42  They try to bash breastfeeding protection laws.  Fail.

16:55  They claim a Republican administration would have supported the health care bill.  Um, no?  From what I remember, the health care bill had to go through extensive Senate reconciliation after the Dems lost their supermajority with Massachusetts.

24:15 “We conservatively believe the real rate of inflation to be 3-4% higher than what is indicated by the CPI.”  Thanks for giving us the formula for how you calculated that.

25:34 Suggestion for fed funds rate to increase to 5.31%  Again, no math evidence.

25:05:  FIRST GOLD PITCH HERE

I skimmed through the next 10 minutes. It was Gold Gold Gold Gold Gold.

37:45  Selective statistics about debt.  You can see the full debt story in chart form here: http://en.wikipedia.org/wiki/National_debt_by_U.S._presidential_terms

Post-WWII our deficit was briefly over 100% relative to GDP.   In the last 30 years, it went up with Reagan and HW Bush and lowered with Clinton.  Obama inherited an 83.4% rate from Bush and it is currently rising.

42:10  The video suggests we “go back to our roots” to fix our economy.  I love 12 hour work days, child labor, sub-minimum wage, and sweatshops.

The rest of the movie was more OMG DEFICIT and Gold Gold Gold Gold Gold.

50:15  I love how the movie links inflation to the “destruction of family values.”  Inflation will soon make a $20 bill worth more as an implement to snort coke out of a hookers ass than its value!

50:38  Somehow the government is “transferring money to Wall Street through inflation.”  Really? I thought it was the deregulation (by the ironically Democratic senate) in the late 90s and early 2000s causing Wall Street to systematically restructure itself into unsustainable pyramid schemes.

The entire movie seems to forget a basic Econ lesson:  Businesses don’t look at national debt and think, “Let’s raise prices!”  Growing economies and demand make prices go up.  A recession—like what’s happening now—makes selling stuff harder, so prices go down.  That’s why inflation is down.

The deficit needs to take a backseat right now to the higher goal of economic growth.  And it’s noteworthy that we borrow from China because they have relatively low lending rates.  Really, what’s China going to do; invade us if we default?  The US and China are economically co-dependent, which is not a great place to be, but safe for the moment.  Right now the Obama administration is attempting to do what it needs to do, focusing on unemployment and GDP growth.  Whether it’s succeeding or not is another post for another day.

[edit]: I wrote a Follow Up Post in response to some of the comments on this page.  Less Sarcasm.  More go suck it, Austrian school of economics:  http://scandalousmuffin.wordpress.com/2011/05/25/nia-article-comment-reax/

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  1. Jay
    July 28, 2010 at 1:20 pm

    Fact checking by using Wikipedia? Your claims are as suspect as NIA’s.

  2. tg
    July 29, 2010 at 10:24 am

    Steve Forbes, CEO of Forbes magazine, just endorsed Peter Schiff’s United States senate campaign.

    Peter Schiff has an INCREDIBLE series of videos on youtube explaining exactly the things which you say you don’t understand or haven’t done research on in your article. I highly recommend you watch them.

    For example, the CPI does not include food, energy, or home prices in its computation. Now, I don’t know about you, but I spend a LOT of money on food and gasoline. It does include rent prices, but these prices are selected on a subjective basis.

    Best

    • scandalousmuffin
      July 29, 2010 at 1:01 pm

      The price of gas is going to go up no matter what anyone does in terms of policy. Hybrids are expensive and aren’t going to go down until they’re mass produced. The market will even out; it’ll just take a couple decades and suck for transportation costs for everyone in the meantime.

      In terms of food… the point I was making was, that in terms of the average family, a lot of food goes to waste. Kids don’t eat half their food, the parents put it in plastic, forget about it in the back of the fridge, and then throw it out a week later. In terms of % of overall income, we spend relatively little on food than we did even 50 years ago.

      I keep food costs down by eating the a lot of the staples of eggs, peanut butter, apples, brown rice, beans, and less red meat. And keeping track of my left overs.

    • Patrick
      August 16, 2012 at 1:33 am

      Peter Schiff is the guy who has been screaming about the inevitable hyperinflation for the last four years and you really can’t get more wrong than that now can you?

      http://krugman.blogs.nytimes.com/2011/12/15/inflation-predictions/

  3. Ben
    July 30, 2010 at 12:34 pm

    I don’t know much about Peter Schiff but if he has been endorsed by Steve Forbes, I’m instantly not interested in supporting him. Its hard to find a better example of a plutocrat than Forbes. Lets remember Forbes’ failed presidential runs in 1996 and 2000, where he was constantly pushing for a highly regressive flat tax.

    I’m very skeptical of Republicans who suddenly have discovered the deficit is a problem after 8 years of Bush and Congressional Republicans squandering the Clinton surplus. Now all of the sudden every stimulus plan the Democrats pitch must be deficit neutral. Well, let me amend that – not everything has to be deficit neutral, its perfectly fine to extend the Bush Tax cuts for Americans in the highest income brackets and continue America’s ungodly rate of “defense” spending without paying for these things according to current Republicans in Congress. Trying to budget the deficit in the middle of an economic downturn is classic Hooverism and deficit spending on unemployment and job creation is what is needed to turn the economy around.

    For the sake of argument, however, lets say deficit reduction is an important priority right now. How should we do it? If you ask Republicans, the National Inflation Association, and right-wing economists like Mr. Schiff, the answer is simple – cut social security and medicare benefits (as well as the Department of Education and the Department of Energy apparently). Enjoy working till you die if you don’t want to spend your final days eating dog food, grandma. If you ask the American people how to balance the deficit, they come up with much better answers according to the latest Bloomberg Poll. http://media.bloomberg.com/bb/avfile/rWsk89LgYLDA

    On page 3, the question is asked about which general approaches should be considered to help decrease the deficit. America’s number one choice is “On Social Security, remove the cap so that wages over $107,000 a year are subject to the tax.” The number 2 choice is “Allow the income tax rate for the highest income earners to go back up to where it was 10 years ago.” Number 3 is “Cut defense spending.” Reducing medicare and social security benefits is ranked dead last out of all the options given. So as you can see, Americans are much more willing to hit the rich and the military industrial complex rather than give up the benefits they have been paying for since their first job. If the so-called deficit hawks like Mr. Schiff and the National Inflation Association are really worried about this problem, how come they never suggest raising taxes on the rich or reducing spending on unwinnable wars?

    As for the National Inflation Association, they appear to simply be just another group of hucksters trying to protect the rich at the expense of the poor and middle class, while shilling for gold in classic Glen Beck fashion. Their youtube video is riddled with misinformation. In addition to the numerous examples listed by Muffin, at 14:50 the video credits China’s successful work force on the fact that they don’t have unemployment benefits to fall back on. This is incredibly misleading. Although there is not government sponsored unemployment payments in China, if a company lays off an employee they are required by the government to pay that employee at least one months salary for every year they worked at the company. Sounds pretty sweet to me. Would the NIA endorse this requirement or would they say that this is socialism? Also the proposition at 50:15 that inflation is linked to the destruction of family values is the most laughable thing I’ve ever heard and should immediately expel the National Inflation Association from the realm of serious economic thought. Besides, family values suck anyway. The National Inflation Association should not be taken seriously and they are certainly not on your side unless you are extremely wealthy or are in the business of selling gold to panicked Americans.

    • Deepblue
      January 14, 2011 at 2:45 pm

      You won’t support someone because they’re supported by Steve Forbes, but you’ll support someone financed and endorsed by George Soros?

      I’d suggest you research the “Quantum fund” and find out how the “Man who broke the bank of England” made his money. Note also that this very same man, George Soros, was branded (and convicted) in Thailand as an “economic war criminal” who “sucks the blood from the people” after causing the Asian Debt Crisis in ’97. Soros, the man also behind the collapse of the Russian currency, the ruble, in ’99 and afterward publically boasted that “the former Soviet Empire is now called the Soros Empire.”(Google “Russiagate”). Just look up Soros’ *** latest conviction *** in June of 2006 in France for his attempt to takeover the Societe Generale bank.

      Soros is the most notorious derivatives trader in History.. and who are we told created America’s financial crisis by every pundit? Deriviatives traders and speculators. Odd that such a speculator would be the largest financial contributor to the “just happened to inherit it” administration and all it’s various supporting “progressive” organizations, isn’t it? Yet you seem to support this all unabashedly.

      Here’s a suggestion. While you’re busy NOT doing your research, you might want to glimpse at Article I, Section 8, Clause 1 of the United States Constitution, also known as the Taxing and Spending Clause… a.k.a. – “The Power of the Purse.”

      It declares that it is *** Congress *** and *** NOT *** The President who is in control of all spending. Even More specifically, that this power rests in the House of Representatives, where *** ALL *** spending (“Appropriations”) bills are introduced.

      Fact check this. It is a list of Speakers of the House by year:

      Carl Albert (D) 92nd – 94th Congress 1/21/71 – 1/03/77
      Tip O’Niell (D) 95th – 99th Congress 1/03/77 – 1/03/87
      Jim Wright (D) 100th – 101st Congress 1/06/87 – 6/06/89
      Tom Foley (D) 102nd – 103rd Congress 6/06/89 – 1/03/95
      Newt Gingrich (R) 104th – 105th Congress 1/04/95 – 1/03/99
      Dennis Hastert (R) 106th – 109th Congress 1/06/99 – 1/03/07
      Nancy Pelosi (D) 110th – 111th Congress 1/04/07 – 1/03/11

      Now compare the Federal deficit by who controls the House (spending) on this handy dandy ‘Chart of Federal Debt’ published in the left-wing rag Esquire Magazine.

      http://www.esquire.com/blogs/politics/federal-deficit-graph-071210

      You will see that spending increased from the moment Democrats took control of the House in 1955 until they finally lost control of the House in 1995 and note the MASSIVE decrease which caused the “surpluses” IMMEDIATELY coincided with Republican takeover of the House of Representatives, and continued under the Republicans right up until the morning of September 11th, 2001. Wonder what happened then?

      But don’t trust me. Go confirm it for yourself. Go straight to the horse’s mouth and hear Clinton tell you WHY *** HE *** shut down the Federal Government to prevent the budget from being balanced by 1997 under the Republican plan – SIX YEARS before he was willing to allow it to be done. Note once again that the President’s *** ONLY *** budgetary power is to VETO appropriations bills.

      Because all spending comes from Congress, when a President repeatedly VETOES the Appropriations bills, the government runs out of money and must be “shut down.”

      Source – Bill Clinton’s radio address 12/16/95 regarding the House’s proposed 96 budget:

      http://www.c-spanvideo.org/program/PresidentialRadioAddress79

      According to Clinton, the *** ONLY *** possible way to balance the budget is to follow HIS plan, which is to “balance” the budget by 2003 – 3 YEARS AFTER he has left office. Balancing the budget any sooner, according to Clinton, will:
      • Deny Children Health Care
      • Deny them Schooling
      • Eliminate the School Lunch program
      • Deny Children Safe Places to live
      • “Deny them Air and Water that is safe to breath and drink”
      • Eliminate Head Start
      • Cut efforts to keep drugs and violence out of our schools
      • Undermine “Our efforts to meet educational standards of excellence”
      • End the Americorp program
      • Eliminate 350,000 scholarships
      • Take away “the Best student loans programs”
      • “will raise taxes” – Note, “raising taxes”, in this context is liar speak meaning that because government will not be able pay people’s expenses, they will be forced to pay for things themselves… i.e. Paying for things is a “tax”
      • “Children will be exposed to hazardous Waste”
      • There will be larger class sizes
      • “10 MILLION” people will be “forced to live near toxic waste sites” that “will not be cleaned”
      • Fewer children will be immunized
      • Millions will be force from Medicaid and onto Medicare adding millions to the Medicare roles
      • Millions will be denied adequate medical care
      • “1 MILLION people will be forced into poverty”

      Listen to it yourself. I entreat you.

      …”And THIS is why I William J Clinton will shut down the government by vetoing the REPUBLICAN BALANCED BUDGET AMENDMENT… because “I will not let them hurt our children” 12/16/1995

      Note: the dramatic Medicare cuts which Clinton is attributing to child rape, torture, and murder was claimed, by Democrats, to “Slash” Medicare by *** $38.5 billion a year *** for 7 years.

      http://www.nytimes.com/1995/09/16/us/gop-s-plan-to-cut-medicare-faces-a-veto-clinton-promises.html

      Funny how a greatly exaggerated $38.5 billion Republican cut caused all of that, but when a Democrat (Barrack Obama) cuts over HALF A TRILLION DOLLARS – a.k.a. over FIVE HUNDRED BILLION – from an already insolvent Medicare system, it will only “add efficiency” and cut “waste”.

      Liar. Thy name is Democrat.

  4. Ben
    July 30, 2010 at 3:41 pm

    Just a quick follow up on the National Inflation Association – Can someone let me know what this video that they posted on May 11, 2010 has to do with inflation and economic policy. http://www.youtube.com/watch?v=LyR6v-I8tG8&feature=channel

    It seems to be more about making people fear Mexican kids. By the way, patriotic clothing is just as lame as family values.

  5. Jan
    August 8, 2010 at 9:58 am

    @Tg Food, energy and shelter are included int CPI. Core inflation is something else, but in CPI they are. Look it up!

  6. tj
    August 8, 2010 at 12:44 pm

    New poster here – I was drawn here by your analysis of the NIA videos.

    I think the most damning thing about them is how they’re trying to funnel you into highly marked up gold & silver coins. Some of these dealers will try to sell you coins that cost 50% more than the melt value of the coins, and which can be bought cheaper at other retailers.

    Also, Peter Schiff is a total hack. Do a google search on: Peter Schiff wrong and you’ll see what I mean. He’s currently running for gov’t so you can see why he’s jumping on the bandwagon plus toting his “expertise” on the economy. If you ask me, he’s a failed fundmanager who’s decided that he can do better as a politician. Lol!

  7. Andrew Mackenzie
    August 22, 2010 at 12:47 am

    Sorry but there are as many silly arguments made here as you claim were made in the video.

    9:45 – You address food, but not energy, both of which would be automatically be more expensive if the price of oil were to jump, meaning that simply wasting a little elss food wouldn’t do the trick anyway.

    10:40 – There are other figures (not government sponsored ones, of course) that suggest Social Security is much worse off than that. For more information, read http://krugman-in-wonderland.blogspot.com/2010/08/about-that-social-security-trust-fund.html

    13:18 – Granted, the Dept of Education doesn’t have many employees, but it still costs a great deal. From the Dept. of Education website: ED currently administers a budget of $63.7 billion in FY 2010 discretionary appropriations (including discretionary Pell Grant funding) and $96.8 billion in discretionary funding provided under the American Recovery and Reinvestment Act of 2009—and operates programs that touch on every area and level of education.

    16:55 – I would argue that the real opposition to the health care bill was partisan politics than real disagreement. The republicans supported big government programs like No Child, the bailouts, and the DHS when Bush was in office because even though since Obama has entered office they seem to suddenly have grown spines.

    24:15 – There are many places you can obtain similar information. Here’s just one: http://www.shadowstats.com/

    25:05 – So what? Gold personally wouldn’t be my first pick but I definitely plan on moving into other commodities as soon as possible. Many people have a fondness for gold because it was formerly used to back currency, and kept the value of the dollar in check for many years. Even though the government unfortunately manipulated the gold standard, it was better than FIAT.

    42:10: Now you’re just putting words in their mouth.

    50:38: No, there’s actually a good case for this. The people who benefit from inflation are those who have investments in assets and commodities that maintain value when prices go up. Middle and lower class Americans, who don’t invest nearly as much and frequently not at all, see the value of their savings fall and have to struggle to afford basic necessities when the value of the dollar declines and import prices rise.

    COMMENTS
    “The deficit needs to take a backseat right now to the higher goal of economic growth. And it’s noteworthy that we borrow from China because they have relatively low lending rates. Really, what’s China going to do; invade us if we default?”

    – No, but they’ll dump all the dollars they have when the default happens, causing spiraling inflation.

    “Businesses don’t look at national debt and think, “Let’s raise prices!”

    -They won’t have a choice if suddenly the dollar loses value and raw goods and materials suddenly gain 10x nominal value. The businesses certainly aren’t going to lower or maintain the price of their goods if they can’t at least break even on them. Price inflation will become a necessity in order for individuals and businesses to stay afloat.

    “Right now the Obama administration is attempting to do what it needs to do, focusing on unemployment and GDP growth. Whether it’s succeeding or not is another post for another day.”

    – What the administration should be focusing on is allowing asset prices to fall by not bailing out banks at our expense. It should also be allowing bankrupt companies to collapse so that their assets can be sold off cheaply to companies that are capable of putting them to good use and turning profits. And it certainly shouldn’t be deficit spending, because future generations are being saddled with a debt that won’t be payable.

    • scandalousmuffin
      August 24, 2010 at 10:16 pm

      9:45 I never said the cost of energy wasn’t significant. It is. And it’s going to suck for the cost of living for everyone compared to what we’re used to. But what we’re used to is not how humanity has survived for thousands of years.

      It’s a significant question that people are attempting to answer: Can we keep up this standard of living without destroying our planet?

      10:40 The Social Security question isn’t going to be answered by quoting opposing economists and journalists who use different numbers back and forth. When I have more free time, I’ll look into it more deeply and mathematically and make a new post about it.

      13:18 Good call on the scholarship and grant cost number. If the NIA tried to argue slashing scholarships and grants in the video, I don’t think it would be very popular. However, from by subjective experience with education costs, there is probably some merit in the idea that government grants may not be worth their cost in return, as they are too small and spread too thin to do much good to the people that need it.

      25:05 Silver has much more industrial uses than gold. If I had money for stocks, I might actually invest there. But not gold, not unless grillz make a comeback. NIA pimps silver companies too, but not as heavily as gold.
      I didn’t spend my time analyzing the NIA’s Glenn Beck gold argument, because even if we wanted to go back, we can’t because gold production isn’t anywhere near sufficient to meet the demands of growing international trade and investment to be backed with physical quantities.

      Almost-convincing articles such as http://www.realclearmarkets.com/articles/2009/05/the_myths_about_a_return_to_th.html claim that “under a Ricardian gold standard, monetary authorities would realistically have no gold at all” and that “there is probably no commodity subject to fewer variations.” The second statement is clearly false. International faith in gold fluctuates. Because it has little industrial use, the same thing that gives gold its value is the same thing that gives fiat currency its value: belief in it. The NIA is obviously trying to cash in on a gold bubble.

      42:10 As for my “child labor” statement–as a misanthropic twat, I use this tactic called sarcasm to highlight the argumentatively specious nature of using semantically ambiguous phrasing such as “back to our roots if we want to survive hyperinflation” juxtaposed to random agrarian imagery.

      50:38 Which “assets and commodities that maintain value when prices go up?” I think of the basics like food and energy. With housing, while I’m sure there’s a floor somewhere relative to inflation, it’s obviously subject to bubbles. There’s a lot of factors as to why energy prices are rising, but I’m sure most of it has to do with that the giant surge of industrial growth in India and China and the finite amount of oil and drilling locations.

      Onto the Econ stuff:
      Even Rupert Murdoch’s colon, agrees that it’s highly unlikely that China would dump the US treasury; it would be bad news bear for the yuan. Even if they did, China only holds about 21% of all foreign debt, 6% of all outstanding US debt. I couldn’t find the current foreign debt chart, but a year ago: http://www.treas.gov/tic/mfh.txt

      I’m not going make a huge argument for deficit spending because even “experts” in economics will disagree on this issue. Keynesian spending at this level is highly theoretical, so Washington is doing what is politically popular. The GOP isn’t presenting enough alternatives for getting out of the slump, and that’s a major part of why they’re probably not going to have a major comeback in the next couple years.

      We do have a model for letting a major investment service group fall. We let Lehman Brothers fall, which had 25,000 employees and $600 Billion in assets. I’m not going to recount all the effects of that particular Chapter 11, but it doesn’t particularly evoke fond memories of stronger companies rising from the ashes of a broken housing market.

      There’s a lot of speculation as to what would have happened if the government had also let AIG fail. The whole notion of “if you’re bad you deserve to fail” isn’t innocent exclusive when you note that not only would have AIG suffered, but its 81 million life insurance policyholders and holders would have also suffered. The connections between the counterparties in the Credit Default Swap market are so complex that no one really knows where the billion dollar losses that are currently being borne by the government would have ended up. Billion dollar losses scare the shit out of people. And when people are scared to shit, credit markets freeze up and growth dies.

      And on a sidenote: Almost half of all Americans have already forgotten that TARP was signed by Bush. Mr. Turbotax Tim Geithner then decided to use TARP funds to buy toxic assets instead of giving it to smaller local banks to promote lending. Better move? Who knows at this point.

  8. Publius Deux
    September 7, 2010 at 1:05 am

    Concerning the sidenote: the TARP program was the Troubled Asset Relief Program, and was intended from the outset to buy “toxic” assets from financial instituations, thereby replacing lost capital to that institution and restoring its ability to operate in the credit markets. What the folks at Treasury did not plan for was that the question of valuation of the “troubled assets” might become impossible to solve in a simple and cost-effective manner, so they almost immediately changed strategy upon passage of the Act. In a clandestine board meeting they forced the nine largest banks in the country to sell preferred stock to the tune of billions of dollars to the US Treasury in order to restore confidence in the banking system. The account of that meeting has been told in the WSJ and other fairly mainstream business publications, but suffice to say that while some of the banks were eager to get the money, other more conservative banks who did not need the money refused to participate until they were told that cooperation was not voluntary. After all nine banks gave their consent to the purchase of their stock the Treasury went into the market with a fist full of dollars for any bank, large or small, that wanted to receive funding. There are rumors that they were actively soliciting banks for handouts.

    This was all done under GW, and it was Hank Paulsen that chaired the meeting, not Geithner. If Geithner were to use the TARP funds to buy “toxic assets” he would in fact have been restoring it to its originally intended purpose.

    This puts a spotlight on what many among the vast unwashed public are beginning to perceive as a big problem with the way our system of government has evolved. We have put our faith in the people who were responsible for the infrastructure of our financial markets, and believed for so long when they told us that what made no sense to us really did make sense, and that they were the ones smart enough to manage it so we should all just go away and leave them alone. Those of us who have been paying attention have seen the game being played out in full daylight in front of us.

    The bottom line is this:

    1. The “experts” we are still being told to listen to ALL got it wrong when we were leading up to the current economic collapse in which we find ourselves. The descent began in early 2007, but most experts will put the date much later than that. Still, October 2008 was a big surprise to most of the people who are still being touted as experts in the financial markets.

    2. There are many who saw the collapse of the housing market coming, and they were vocal in their predictions. Peter Schiff is not the only one among them, but he is among them and he was RIGHT! I was first introduced to Peter Schiff in 2005, I believe, and he made me lose sleep at night with his predictions because everything he was saying made sense to me. He was called a doom-sayer and a nut-job, and we were all told not to pay him any attention. I know some will point to the performance of his investment selections and say that he does not know what he is talking about. There is a difference between picking a stock to perform over a specific window and predicting a major economic upheaval in an unknown and unknowable time frame. I do not care if he was not an effective fund manager. Peter Schiff was right, and the mainstream economists were way off base. They are still calling him a fraud and a doom-sayer, but he has done them one better – he was right.

    And so we come to the present day. Now if you want to play in the market you have to be careful that you are on the right team, because one team has the referees on its payroll and the others do not. Just ask anyone who worked for Lehman Brothers how things worked out. As the previous poster mentions, we “let” Lehmen fail. If you were with Goldman Sachs you probably did just fine. But they were involved in the process of picking the winners and losers in the financial bailout game, and Lehman was their biggest competitor.

    Oh, wait a minute: didn’t Hank Paulsen have long-standing ties with Goldman Sachs?

    I am sure that has nothing to do with anything…

    We among the unwashed have become disillusioned with the ruling elite in our country. The word “disillusioned” is an interesting one. In common practice it is often meant to say that one has become unhappy with something. In its true definition it means to lose all presentse and fanciful illusion about that something. This is what is at the root of the Tea Party movement, the Glenn Beck rally on 8/28, and a sudden spike in interest among Internet users for an unbiased voice of sanity concerning what is happening in our country. Thus the popularity of NIA – they are simply following the paradigm proposed by Austrian economists like Schiff into its next logical phase. The people on THEIR side have been right. The people on the other side have been calling them kooks and have continued to get it wrong all the while.

    The American people are taking off the blinders. We are no longer willing to accept that the reason things are stacked so far against us is that the world is just too complicated and that we should leave the management of it all to our betters. The lurch in 2010 is likely to be toward the Republicans in the belief that they will return to a sane fiscal policy – but we all know only too well that this problem came to bloom under a Republican administration.

    Let this be a warning to the Republican party: November will likely deliver to you a mandate. With the gains you obtain in the House and Senate you will probably not be able to take control of any meaningful policy. But if you return to business as usual it will be the end of your party. 2012 will be an election cycle the likes of which this country has never seen.

    • Patrick
      August 16, 2012 at 1:37 am

      Peter Schiff has also predicted hyper inflation which didn’t happen. Peter Schiff was right for the wrong reasons about the economic crash and he got incredibly lucky.

  9. Peter
    September 13, 2010 at 4:40 pm

    What you fail to see is the basic premise from which the organization operates. The Federal Reserve has devalued the dollar to about .03 in less than 100 years. Inflation is not prices going up, it’s the value of the dollar going down. period. Social Security happens to be a ponzi scheme. I have no idea what you are talking about when you address it. It quite plain and simply is an unfunded liability that the country is either going to default on, or Bernanke is going to keep printing money to fund it. There are far too many people who are informed to buy into the nonsense you are spewing. And borrowing money from china so we can buy products from the chinese is absolute folly. We need to be investing in our own economy…developing industry and jobs that actually produce something. If you learn nothing else learn this…..there is only one thing the government produces…and that is debt. Government agencies like the Dept of Education are useless agencies that produce nothing and cost immense amounts of money each year to run. One thing Ron Paul always points out is that anytime the government gets involved in anything it instantaneously becomes less efficient, costs more and is a drain on the economy. The role of government is not to bail out companies…educate our children…provide its citizens health care or artificially stimulate the economy. We need people to begin to understand that there is no longer a left and a right…There are national party candidates who represent the same special interests from both major parties…and those who don’t. Having a private central bank that creates money out of thin air…gives it to whoever it wants with limited to no oversight is a very scary and real problem that we face today. Yet no one talks about it. Every country that has attempted to print fiat currency without the backing of something tangible, other than the coercive power of government, the currency has been destroyed. There are real problems that are going to affect every American very very soon. NIA is pointing out merely one of them…albeit a major one. The taxing and spending as well as the Federal Reserve Chairman’s commitment to monetizing debt will not only destroy the buying power of the dollar…it will continue to rob every American every year thru the hidden tax of inflation and destroy our economy by continuing to artificially prop it up. As far as commodities are concerned…i defer to ed griffin…2500 years ago..an ounce of gold bought..a very nice toga..a handcrafted belt and a nice pair of sandals…the same ounce today buys a very nice suit..the same belt..and a nice pair of shoes.. As Alan Greenspan says…”gold is the only protector of property rights”. Thank God people are waking up…I just hope it isn’t too late

  10. scandalousmuffin
    September 13, 2010 at 9:42 pm

    “Inflation is not prices going up.” Really now? I have two economic textbooks. The one by Edwin Mansfield defines inflation as “an increase in the general level of prices economywide” and the classic McConnell Brue defines inflation as “a rise in the general level of prices.” Yes, currency is devalued, and this causes inflation. “Devalued to .03″ What are you talking about? What are you citing?

    Captain Ellipses Kirk, I didn’t realize the title of my post was, “Let the Fed print shittons of paper without regard to our economy.” Also, Social Security is funded by this thing that takes money from my paychecks every week. The trustfund has a surplus for the next 27 years. And then they can still meet 75% of the obligation till 2087. Unless you know, the SS board of trustees is lying. http://www.ssa.gov/OACT/TRSUM/index.html

    But what do I know? I “fail to see the basic premise from which the organization operates.” I also didn’t realize that government was completely useless. I’ll think about that when the seams of capitalism tear apart and I’ll have to use gold to buy my toga.

  11. Charles
    September 15, 2010 at 1:52 am

    The “MYSTERIOUS” National Inflation Association? This is a prime case in point of the strategic use of polemics to defame! Maybe you ARE reading letters and numbers backwards, like PILGRIMS SOCIETY member Nelson Aldrich Rockefeller did. Pilgrims Society—now THAT’S mysterious! And constitutes the primum mobile of our monetary woes and represents the penetralia of Wall Street kingpins allied in secret with The British Crown. Ne Plus Ultra.

    • Kevin
      November 3, 2010 at 10:49 am

      they are not mysterious to me other than hawking gold which makes me doubtful of their credibility, just who are they. who heads them up what corps are part of this NIA.
      theonly place it name appears is on ads or infomercials pretending to be documentarys and selling gold, besides being gold promoters just who are they, very simple gold merchants thats it thats all their is the billy mase of gold

  12. September 15, 2010 at 12:31 pm

    Charles,

    LOL!!! Well done, sir. Way to expose Muffin’s defamation through the “strategic use of polemics.” Don’t listen to any rational people who might see her use of the word “mysterious” as merely an effort to add humor and levity in order to make the article more enjoyable for the reader. No!! It is clearly a well organized plot to defame the NIA by calling them mysterious. Dude, you crack me up.

    Honestly I don’t see how being mysterious is a negative quality and hence I don’t see how that adjective usage is defamation. Being mysterious is cool. Batman is mysterious.

    I’d respond to your other point but I’m afraid of invoking the wrath of the Pilgrims society and the British Royalty. If they team up with the Free Masons and the Illuminati, we all are doomed. Using big words doesn’t make you sound smart if you are using them to advocate a nutty conspiracy theory.

    • scandalousmuffin
      September 15, 2010 at 4:43 pm

      Latin = Da Vinci Code = corporal mortifying albino.

      Using my irrefutable logic, Charles is obviously a sad, lonely monk who has been brainwashed by his cult to obfuscate the true bloodline of Jesus Christ.

      Don’t hate on him so much.

    • scandalousmuffin
      September 15, 2010 at 4:57 pm

      PS We need to use the word “penetralia” more in our everyday conversations.

  13. The Austrian
    October 5, 2010 at 11:42 am

    I laugh while reading articles of people shameless to post things they know nothing about.

    once I got too:
    “Now I’m not going to bash Gold and Silver as a means to hedge long-term financial risk, because I’m not an economist. But here’s an article that does:”

    I was going to just close the page. But I skimmed on a bit and realized you have the gall to make your own conclusions about what the country should and shouldn’t be doing for the economy!
    See all you did here was skimmed through the video didn’t bother doing any fact checking found a few articles to bash it. (Huffington post and Wikipedia of all places..??) Then you went on regurgitating some sudo logic you probably learned last night from some Paul Krugman article.

    Regardless of if NIA’s predictions are wrong or right you just simply don’t know nearly enough about the subject to even comment, much less waste the internet with this “fact checking” article of regurgitated information you don’t even understand.

    • scandalousmuffin
      December 4, 2010 at 1:15 am

      Well, I don’t have balls, so I guess gaul is the next best thing. I got GAUL. Which parts of “gold lacks intrinsic value making it a dubious long term investment unless you know exactly when to sell before the bubble burst” don’t I understand?

    • brieger david
      December 4, 2010 at 4:22 pm

      That is exactly what I said in my short post. Yours was much more well said! Exactly!! Preach it brotha!! Long live the Austrian School of Economics, and long live freedom and liberty!

  14. AC
    November 8, 2010 at 1:11 am

    When a decreasing number of people have an income, and most of the remainder have a de facto fixed income, hyperinflation will lead to one thing: civil unrest (at best, revolution or another civil war at worst).

    Frankly, a decent long range blue water sailing vessel might be a better investment than gold. Hello, Australia :)

  15. November 9, 2010 at 3:54 am

    I don’t have the time to address everything you mentioned here, but here are a couple of my thoughts…you say
    “Now I’m not going to bash Gold and Silver as a means to hedge long-term financial risk, because I’m not an economist. But here’s an article that does:”

    Then you quote Huff Po? I wouldn’t quote “The Blaze” -Beck’s new online mag in order to convince you of something. HuffPo has an agenda. Find a neutral resource.

    You quote the film:
    “The average American might have to eat less and stop air conditioning and heating their home just to afford gas for their car.”

    then you say:

    “I like the word ‘might’. And aren’t we obese and energy-hungry anyway? Doesn’t a third to a half of our food go into the garbage and not into our mouths and out our ass?”

    Well, no, not at our house. We rarely throw food away. Today I had rice and vegetables because that’s all we had in the cupboards and I hate to waste food. If we have leftovers-we save them and eat them later or I freeze them and use them in another meal later. As for the air and heat-I know people who due to health issues MUST have certain temperatures, but even average people have a right to live in a comfortable temperature.

    42:10 The video suggests we “go back to our roots” to fix our economy. I love 12 hour work days, child labor, sub-minimum wage, and sweatshops.-UM NOBODY IS SUGGESTING THAT. SERIOUSLY!

    “The entire movie seems to forget a basic Econ lesson: Businesses don’t look at national debt and think, “Let’s raise prices!” Growing economies and demand make prices go up. A recession—like what’s happening now—makes selling stuff harder, so prices go down. That’s why inflation is down.”

    Well, in a perfect world, people would not gouge each other for basic things like food, water, energy etc, but your presumption is wrong. Explain why the Weimar Republic faced such high inflation when their dollar was practically worthless. By your standards-bread should have cost less than a penny-but it cost a wheelbarrow of money during that time!

  16. John
    November 9, 2010 at 11:13 pm

    I think if anyone sits down and thinks about an economic system were 99% of the wealth is controlled by 1% of the population, they would have to see the mathematic certainty of failure. In a monetary society….how will the masses survive without it? There’s no cure for technological unemployment. Think about 100 years from now and we master genetics and stem cells. Just go get a shot and your all better… POOF no need for doctors. I agree with the message the NIA has that rough times are ahead and possibly irreparably broken, it’s a same that they are in once sentence denouncing greed, but want you to prosper in gold while everyone else loses everything. Good message, bad messenger.

  17. Freethinker
    November 11, 2010 at 3:33 pm

    George Soros buys gold.

    • shannon
      December 1, 2010 at 2:27 pm

      I don’t give a damn whose buying gold and I don’t want to be told that I, too, should be buying gold. At the moment, with no job, I’m doing good just to pay utilities and mortgage ….. oh, wait …. I’m behind on both. So just where should I get the $1400 for an ounce of gold? I can’t eat gold.

      But I’ll tell you what I am buying, when I can. Extra rice, beans, canned goods, etc. I’m not a “chicken little” type, but I have been noticing the higher prices on the shelves at the grocery store. It’s not getting better and instead is encroaching on an already strapped personal budget. Bottom line is that it is wise to stock up on the only thing that really has intrinsic value …. food. Food storage is a good idea not just for fear of hyperinflation, but for any instance in which “sheltering in place” may be necessary.

      • Pablo
        February 1, 2011 at 6:53 am

        Who says you have to buy gold? You don’t. Think for yourself. Buy what you can afford and what is the best investment. You should be buying silver. It’s more attractive than gold because it is still far below all time high of $50 mark set 30 yrs ago. It is also affordable. Only $30 per ounce. Forget gold. Buy silver. If you can’t afford that then buy copper… or led.

  18. Joel Mays
    November 30, 2010 at 8:25 am

    Lets just all try to agree on two things:
    1. Our government is spending more and more money and not getting results; hundreds of independent studies show that almost every “program” is a failure or worse (corrupt, and/or delivery worse results than leaving the situation alone). We have funded teenage pregnancy so gotten more illegitmate babies, “families”.
    2. The budet deficit and more meaningfully the growing debt is expanding twice as fast as our economic growth — can you say “bankrupt goverment”, and the “USA Titanic”?
    If not start practicing.

  19. lilskruff
    December 2, 2010 at 1:47 pm

    all really see is a bunch of opinions from you backed by people and places who are ALWAYS wrong. i remember huffpo talking about how “the summer of recovery” was going to be great and all of this. whatever happened to the usmmer of recovery? it fizzled out because what they tried saying was right by LIARS turned out being wrong. what happened to the mainstream media that you OBVIOUSLY listen to boasting about how the “sub prime crisis would be an isolated event” after the LIARS again came out and said it? what happened to the MSM(main stream media) boasting about bernanke saying that “QUANTITATIVE EASING” would only need to be used once to rescue? now we’re on our second which is looking to be about 7$ trillion.

    so yeah, you keep listening to liars on places like huffpo, msnbc, or fox. i’ll keep listening to people like peter schiff, gerald celente, bob chapman, max keiser, and hell im surprised that even alex jones is starting to be right about what he said is coming. im starting ot like alex more because i remember saying the same ignorant things i can guarantee you say about him, now guess who is right?

    yeah, keep listening to the liars, pundits and paid spokesman, i’ll keep listening to the people who have been right ~98% of the time, you keep listening to your liars keeping your hopes up while we are simultaneously robbed blind. WHY DO YOU THINK THE FED RESERVE CHAIRMAN BEN BERNANKE NEVER REVEALS WHERE THE MONEY WE GIVE THEM GOES? i’ll tell you why, money trails speak tons of words, it went to their own other offshore private banks. the prices arent rising, our dollar is losing value.

  20. brieger david
    December 4, 2010 at 4:18 pm

    The only thing missing from the article above is data….facts to refute NIA and many, many other well informed global economists, and investors. Just explain why the data and facts are incorrect instead of making personal and sarcastic attacks. Just the facts ma’am, just the facts.

  21. Stephen studer
    December 6, 2010 at 4:29 am

    It’s a freak show, that’s for sure! Money is a tool. That’s all it ever was and will be. It was meant to standardize the labors of mankind. Too bad so many people have the misconception that it all belongs to them!

  22. mrbrandon71@hotmail.com
    December 12, 2010 at 11:52 am

    DO YOUR HOMEWORK AND UNDERSTAND “DISINFORMATION.” THE SCHIFF’S are related, by bloodline, to the Rothschild who are wholly or partly responsible for the frightening condition the country, and indeed the world, is in today! So many contradictions and so many hoaxes…

  23. Andy
    December 17, 2010 at 3:19 pm

    24:15 “We conservatively believe the real rate of inflation to be 3-4% higher than what is indicated by the CPI.” Thanks for giving us the formula for how you calculated that

    Dunno about their formula but last I knew is the CPI ignores “Volatile prices”
    Prices like costs at the grocery store where inflation hits everyone the most.

    “Obama inherited an 83.4% rate from Bush and it is currently rising.”
    Yep and the Obama is making it worse not better for sure.

    “42:10 The video suggests we “go back to our roots” to fix our economy. I love 12 hour work days, child labor, sub-minimum wage, and sweatshops.”
    Actually I loved non-interventionism, our own Industry and jobs that came with it, a stronger dollar backed by something other than thin air and a rock solid Constitution with people willing to fight for it. Going back to our roots does not simply mean going back to all the crap we have worked to fix. I believe it means going back to sound fiscal policy and turning to the Constitution for guidance. If we but followed the Constitution the federal reserve would not be debasing our currency and we wouldn’t be blowing Billions or Trillions on wars of aggression and we might actually get our industry back in country.

    50:15 – I agree. Inflation has debased our currency to the point that it is 96% less its true value. Inflation will eventually make worth less than toilette paper and probably sooner given the recent unleashed printing presses.

    50:38 Somehow the government is “transferring money to Wall Street through inflation.” Really?
    Yes. To understand you must first comprehend that when they print the money, those that get it first get it at value. By the time the money hits the streets it has been devalued through inflation.
    The only question is who gets the money first, in the bailouts of 2008 that would be Wall Street. Weather Wall Street paid its bailout back or not is irrelevant as they got “1st Use”.
    Inflation is best observed through time, back in the 50’s how much was, say a 12oz can of soda, compared to now? How about a Big brand car?
    Inflation is not down if it were other economies would not be discussing the Dollar and abandoning it as a world reserve currency. Given the Blank Check at the Federal Reserve and Quantitative Easing (legal counterfeiting) they would fools not too.
    Several things affect prices, supply, demand, cost to produce, shipping and Inflation among the top criteria.
    Businesses who do not pay attention to Inflation would eventually be losing money paying for their business if they did not adjust the sales of their goods to compensate.

  24. Lurker
    December 21, 2010 at 8:17 pm

    *smack forehead*

    scandalousmuffin certainly could benefit from a basic lesson in banking and economics.

    It still amazes me that so many people don’t understand the increase in prices is but a symptom of inflation. Although, I suppose it shouldn’t be surprising given that most dictionaries define it as such. Inflation is really quite simple: it’s just more money chasing the same amount of goods and services. How do we get more money? The Fed prints it.

    As to why inflation devalues our dollar? Well, today I have 1 dollar that I put into savings. Tomorrow, 10 more are printed. The additional money puts upward pressure on prices and suddenly, my saved dollar doesn’t go as far. This, of course, doesn’t happen overnight but in a year or so it becomes noticeable.

    To buy what a dollar would buy in 1913 would cost around 21.5 dollars today. Visit any website with an inflation calculator.

    Incidently, I doubt many people also realize that money today is debt; that is, if everyone in the US (and that includes the government) paid back all outstanding debt, there would be no money left.

    Anyhoo… several excellent books out there on the topic. I suggest you take some time to look for them. Ultimately, only you can take care of you.

  25. Dan
    December 22, 2010 at 7:22 pm

    If you had bought silver at the time you wrote this “fact-check” it would have cost you about $18 an ounce. You could sell it today, 5 months later, for $29 an ounce.

    38% return on investment (ROI). 38%. That outpaces even savvy stock strategies by TRIPLE. Even gold has risen 14%, slightly higer than the savviest stock strategies.

    • Paul
      December 31, 2010 at 3:00 am

      Well put. Here is another fact. This year of 2010, China has purchased five times more gold than the previous year. People can take this however they wish, but I believe it speaks volumes in and of itself.

  26. bill phillips
    December 31, 2010 at 1:42 am

    You dare quote huffington post for ANYTHING of serious discussion and use it to refute points made by the inflation association? Are you crazy or just another Arianna Huffington mindless follower? The truth is indeed all around you if you will just listen. Your fate probably lies with the rioting masses that did not listen, have no food or water and blame the enlightened few that DID horde supplies while they were still available at affordable prices. Oh, and by the way, silver AND gold will ALWAYS buy what useless dollars will not in times of crisis. God, I could go on forever…but it is obviously wasted on the Helen Kellers of the world. Keep it up, my friend. I will be selling bread to you for one ounce of silver…minimum…because you cannot eat the silver…OR…buying a tank of gas from you for a gallon of water because you cannot drink the gas. remember, an ounce of preparation is worth a pound…well, you get the idea.
    See you in the streets…NOT!!!

  27. Mike
    January 4, 2011 at 10:56 am

    Huffington Post vs 6,000 year history of gold… hmmmmm… tough call.

  28. Mike Wilson
    January 5, 2011 at 10:10 am

    Wow, you really are an ignorant, self important ass.

  29. Tony
    January 7, 2011 at 5:16 pm

    Well I started to read this article but after 2-3 paragraphs it was apparent you are not interested in any seeking of the truth. You are only interested in trying to bash NIA because you personally don’t believe some of the information. At the point you began talking about Social Security was the point I knew for a fact that you are an idiot.

    • scandalousmuffin
      January 7, 2011 at 5:52 pm

      I’m interested in Bashing in NIA because they present inflated figures and vaguely explained (if at all) economic predictions under the guise of saving Americans, when they’re obviously trying to cash in on a gold bubble.

      Which part of the Michael Mandel’s Social Security commentary is wrong?

  30. herosandwich
    January 12, 2011 at 4:35 pm

    I agree there are things to be circumspect about in NIAs videos, particularly when they keep sprouting the bullshit story about missing gold over at Morgan Stanley. I know one of the lawyers involved in that case. Sent NIA the details right from the horses mouth. No response – didn’t want to have to publish a retraction, I guess.

    But as for some other points:

    “Hybrids are expensive and aren’t going to go down until they’re mass produced.”

    You complain about sweatshops and still want mass produced hybrids. Any idea where the rare earth minerals (not precious metals, mind you) comes from? That’s right, little brown and yellow people strip mining the material from China, mostly. They do this to make the Prius (the most environmentally unfriendly consumer product to produce), solar panels, windmills and a host of other ostensibly earth-friendly products that white people love to brag about.

    Oil is here to stay, as is coal, chemical farming, etc. MIght as well get used to the idea. As for your confidence in things to work out, stop bashing gold, forget about parties as that will serve as a big distraction and, while your other twentysomething friends are not looking, do some more reading. The NIA is mostly correct about the big picture.

    • Pablo
      February 1, 2011 at 7:09 am

      Get your facts straight. GATA has a sued many of the big banks for illegally suppressing the price of gold and silver, JP Morgan being chief among them. Not sure where you’re pulling this Morgan Stanley shit from. Probably out of your ass. GATA scored a victory when the court agreed, but regulators are not going to enforce it. As usual they will make it look like they are doing something, but it’s just a slap on the wrist. The problem with all the big banks is that there could not possibly be enough gold and silver in the world to back up all these paper ETF’s they have created out of thin air. It’s mathematically impossible. So JP Morgan can create all these paper shorts on metals without having to physically own the metal. It’s a scam meant to keep the dollar from collapsing. If the price of metals were determined by the physical market alone, the price would be 50 times what it is today, because there is 50x more paper metal than physical. Everyone who deals with the COMEX knows they don’t have the inventory they say they do. They are playing a shell game… it’s a huge Ponzi Scheme. And when it blows up the price of the metals is going to go parabolic. At least $8000 per ounce gold and $500 per ounce silver, maybe more.

  31. Steve
    January 12, 2011 at 6:20 pm

    NIA has good gold stock picks. You can also get more gold penny stock picks and other hot stocks from other sites, like http://pennystockalerts.com/ and a lot of other good sites out there.

  32. Rob
    January 14, 2011 at 12:23 am

    Wow…..””””””Now I’m not going to bash Gold and Silver as a means to hedge long-term financial risk, because I’m not an economist. But here’s an article that does: http://www.huffingtonpost.com/alan-schram/is-gold-a-good-inflation_b_443927.html “Gold does not generate cash flow (indeed it has a carrying cost for storage, insurance etc.) and does not have any intrinsic value, and therefore it is of dubious value as a long term investment.” Makes sense to me”””””. You obviously are not paying attention to whats going on. Why do you think gold and silver are skyrocketing in price????Because the rich, and smart know that the spending power of the dollar will be absolutely zero very soon. Come on its right in front of your face. Wikipedia??? that is the most tampered website out there. You are getting your information from opinionated peoples that is just that, opinion. Come on man.

  33. Freethinker
    January 15, 2011 at 1:39 pm

    You used The Huffington Post? That hard left, George Soros funded joke of a “news” publication. They’re as guilty of misinforming the public as Fox News is. Try something a little less biased and a lot more credible.

  34. bigpicture
    January 19, 2011 at 1:44 pm

    Ok, Bottom line is what? Please forgive me for my ignorance…I’ve dove in back in August 2010 trying read and learn all I can about the our economic situation. I’ve been watching NIA and many others, knowing that most organizations have an agenda to lead me or sell me something. So my question is, and I’m going to put it in caps only to grab people’s attention as they scan through these articles…. *****IS THE US ECONOMY GOING TO CRASH, YES OR NO ??????********* Thanks for any input you all might have

  35. January 27, 2011 at 11:26 pm

    If you people cannot see the high unemployment in the United States, you’re really really blind. America or the US is in doom and it will go down, we all are here witnessing the collapse of the empire, China is the new power. The oligarchs have sent the us economy to China. Americans only care about video games, Ipads and Jersey Shore, they see nothing thats real around them. They don’t see the high unemployment, millions on food stamps and massive homelessness. Wow, only dumb Jersey shore and all the other dumb reality shows on television. Wake up people, before it’s too late. Every great empire falls by the hand of another great empire to emerge.

  36. January 27, 2011 at 11:37 pm

    All nations have a responsibility to the new world order. The U.S has one government whether democrat or Republican, it’s a puppet show and the elite want one world government and all you people that have the freedom to talk crap now, you would not have that freedom in years to come; Then you will recognize tyranny. They laugh at Jessie Ventura, Alex Jones and David Icke, because they know the American people are asleep and they have no idea the hellish life that the elite is planning to bestow on them such as a replica of Hitler’s empire. All you sleep walkers need to wake up and smell the hell in America, if you don’t wake up now then I don’t feel sorry for you later because you were warned.

  37. Pablo
    February 1, 2011 at 6:41 am

    Scam? How are they scamming you if they are just giving you political and economic opinions? They are not asking for your money then selling you something or promising you something you never receive. Sure, they recently tried to sell some stock picks but that isn’t a scam. They actually have a great track record. Back in Feb ’10, they recommended buying $20 silver call options. I didn’t pull the trigger. Now I wish I had. It has gained over 1000%. Yeah real scam they got going there!

    Regarding your gold/silver “research” consisting of one article written by Alan Schram stating that “it had no intrinsic value and is of dubious value as a long term investment”. That complete ignorance. Over the last decade gold has gone from $300 per ounce to over $1300. Silver from $5 to $30. The Dow Jones on the other hand has gone from 10,000 to 12,000. Wow! What were all us gold bugs thinking! We should have stuck with stocks. Or better yet, with the intrinsic value of cash. Because paper and ink is far more valuable than gold or silver right? There is no other industrial or technology use for silver right?

    Since 1971, the year I was born. Gold has gone from $35 to over $1300 and silver $1.50 to $30, beating the pants off the stock market. No long term value you say? Not to mention there is no fee if you store it at home. And you never have to worry about it’s value going to zero like a stock or a dollar which has lost 97% of it’s purchasing power via inflation over the last century.

    And unlike currencies and stocks, gold and silver are FOREVER. They had equal value 5000 years ago, just like they do now. Your stocks and your money will have zero value after a few generations time, as most companies will not be around and most currencies only last 30-50 years. The current version of the dollar has only been around since ’71 and it’s on it’s death spiral.

  38. Pablo
    February 1, 2011 at 6:49 am

    RE: BigPicture’s question “Is the US economy going to crash?” Where have you been? It already crashed! How are you defining crash? They prevented a total apolcolypse on Wall St by printing trillions of dollars out of thin air and giving it to banks and corporations. Basically the life rafts went to the drunk crew who crashed the ship into the iceberg. So they prevented the sinking of the Titanic by plugging the gaping hole with piles of cash, and the crew escaped, but all that cash is going to become worthless. So the economy will keep going, but it is going to be on life support. EVERYTHING is going to get very expensive. It’s simple economic law. The more money you create the less it’s worth. And the thing that really sucks is that the money created is going into the pockets of banks and corporations not the common man. And because of it everything is going to get more expensive for the common man, and make more money for the bankers. Long overdue for REVOLUTION. First step… END THE FED!

  39. Pablo
    February 1, 2011 at 7:00 am

    “The greatest enemy of knowledge is not ignorance. It is the illusion of knowledge.” Stephen Hawking

    Here is the number one problem with most sheeple, including this one… EGO. People can’t admit they know nothing. They can’t say those simple words… I DON’T KNOW. Everyone pretends like they are an expert on everything. Everyone has an expert opinion because they skimmed over one article or heard a few sound bytes on CNBC or CNN or FOX. Whether it’s politics or economics or whatever. It’s all about EGO and trying to exert your superiority over everyone else. Makes us all feel good. We are all guilty of it. But we are all better off admitting we don’t know everything, and we never will. Only speak with certainty about the things you are an EXPERT on. And to be an expert you better have a track record and back up your talk with a lot of research and facts to which this person does not.

  40. February 2, 2011 at 5:03 am

    Great post..The NIA is a joke….Nothing but inflation fear mongering….I love the doom and gloom music they always use :)

  41. OMG
    February 11, 2011 at 11:39 pm

    This is an article extremely lacking in common sense.

    I do not believe in those doom-sayers who predict Gold will shoot up to 10k per Oz any more than some brain dead financial professionals who get too caught up with their little money games while being blatantly ignorant to the most basic facts.

    If Gold has got no value. Why do Central Banks around the world maintain a Gold Reserve? While the amount of Gold Reserve held by Central Banks will fluctuate over times, the fact remains that Central Banks have always, and I think will always have maintain Gold Reserve in certain quantity.

    And if Wiki is anything credible to go by – US holds the biggest gold reserve in the world. So isn’t it a bit suss when this guy is telling people gold is worthless while US Government still maintains NO.1 Gold Reserve in the world ?

    Basic logic will tell you : if Gold is useless, Government will not go through all the trouble of holding them. After-all, do not forget that Government is the one that has major influence over the market and is the one who sets the rule of the game.

    This article shows how all these so-called “financial professionals” with a big impressive titles are really like

    Balance is the virtue, Gold is not worthless, have some gold and have something else too.

  42. Daniel
    February 19, 2011 at 3:12 pm

    Using the biased Huffington post as a source? The authors motives are as suspect as the NIA.

    • RJP3
      December 13, 2011 at 4:44 pm

      Right — truth is suspect.

  43. Some info
    February 20, 2011 at 5:49 pm

    Thought you might like to have this info re: the National Inflation Association. This is from the WHOIS website. As you can see it is owned by a guy named Gerard Adams who has appeared on Fox Business(TV segment).

    Domain Name: INFLATION.US
    Domain ID: D2214889-US
    Domain Status: clientTransferProhibited
    Registrant ID: DB7877501ECDF445
    Registrant Name: Gerard Adams
    Registrant Organization: National Inflation Association

    His website says this about his future ambitions:

    As an Investor Relations Specialist, Gerard Adams is looking to continually grow his company into the best small cap investor relations marketing firm in the United States, before ultimately taking it global. As a powerful young entrepreneur, Mr. Adams has also taken steps into investment banking and anticipates taking many new companies public in the future. Furthermore, he also is looking to capitalize on his research analysis and investment strategies to potentially start a hedge fund one day.

  44. Some info
    February 20, 2011 at 5:56 pm

    His other company is called Wall Street Grand and focuses on Penny Stock analysis.

    • RJP3
      December 13, 2011 at 4:45 pm

      In other words he is a scam artist looking to get rich by taking your money by selling pipe dreams and promoting hysteria.

  45. Fonestar
    April 16, 2011 at 12:54 am

    “Gold has no intrinsic value”? You are a total f*cking moron! Gold is one of the FEW things that DOES have intrinsic value, the others being Silver, Platinum, Palladium, etc… I guess this is why China and Russia are DESPERATE to hoard as much gold as they can for their new Gold-backed currencies? Because it has no intrinsic value? India bought 600 tons of gold because it has no intrinsic value?

    I am going to laugh at morons like yourself when the bottom falls out and you are forced to use your Google and Facebook stocks and federal reserve notes as toilet paper. Moron! Just wait for the Chinese and Russians to attack your dollar! Don’t think it will happen? Just wait tool!

  46. April 23, 2011 at 6:01 pm

    That’s a mold-beraekr. Great thinking!

  47. Camil Bovine
    April 27, 2011 at 5:11 pm

    I have taken the liberty to read many of the posts here, and I think a good debate is healthy as long as the people involved are willing to learn from one another. I have been an NIA member for almost two years, and I don’t understand why so many of you are bashing them. Undoubtedly misinformed, and unaware of all the facts. It may be true that the founder is an entrepreneur and interested in making money, but what’s wrong with that. The truth is he has made his members a ‘pile’ of cash, those willing to listen, and follow the many very good stock suggestions. (By the way, most of the suggestions are not by definition penny stocks). The updates are very informative, timely, and have come to fruition in almost perfect detail. Now I don’t know about you guys, but if the proof is in the pudding, then these guys are master bakers. They suggested silver as the best investment of the decade in late ’09, at about $17 bucks an ounce, and today silver is trading at about $48 per ounce. Bubble, maybe, but I assure you this is one bubble that I’m damn glad I’m riding out. Internet tech stocks were a crazy bubble in the late 90’s, and yet I know several fellows who made a pile of cash in that mania. Now I don’t believe the two are comparable, becuase silver is real money, and internet stocks, well I don’t need to break it down, do I. Do they pump and dump penny stocks, I don’t think so. As I stated many of the picks are not penny stocks, and 85% or more of his picks have panned out very, very well. So I’m going to stick to the guy who’s putting money in my pocket, and calling it to a tee. You fellows, ladies and gents for all your venting have not made one prediction that has come true here, and you aren’t likely to add any real value to my bottom line, but the NIA has in spades. Reading the articles and watching the videos has been like watching history written in advance, and none of you can make that boast. I applaud the work of the team at the NIA, and I’m glad they are informing us sheeple as to how to prepare for the coming days, because it’s getting a little frightening out there quite frankly, and assets that hold value will prove to be very useful I’m sure. Do what you can afford to do, to prepare for what the governments agenda is beckoning, because things are about to get ugly, and being prepared as possible now will prove very wise indeed. Cheers to the NIA!

    • watson
      June 1, 2011 at 5:37 am

      I think what u said here was absolutley Awesome!!!! how can u bash an Association who brings u weatlh with out negativly effecting others? U cant! they make money and so do you in the process and warn u about the future so I realy like what u said.nothing wrong with questioning things like this tho

  48. Camil Bovine
    April 27, 2011 at 5:19 pm

    While I’m at it, I would like to throw a bone to Peter Schiff as well, many have mentioned him in this blog, and run him down. I’ve been following Peter Schiff for several years now, and for you naysayers out there. You would do well to watch his address to the mortgage bankers assosciation in November of 2006. As follows:

    http://www.youtube.com/results?search_query=peter+schiff+mortgage+bankers&aq=5&oq=peter+schiff+

    It will blow your mind. You may find it hard to believe that he spoke in 2006, becuase it was like listening to someone speaking 10 years after the calamity, and recounting the details in perfect order. Uncanny even. Peter Schiff has been bang on, time after time, and he’s not going to fall down now. I am a very happy subscriber to Peter Schiff’s commentary, and again, money in the bank doesn’t lie.

  49. Don Cook
    May 17, 2011 at 11:02 am

    Please advise!

    Have considerable retirement funds in money markets at nearly zilch. Want to extract it (am 64 years old) and pay the taxes, without penalties, to invest in more physical silver, and maybe a little gold. Currently, 20% of our non-real estate holdings, and maybe 15% including RE holdings, are in precious metals. Do you see a problem with a larger portion of our assets being in precious metals, considering the chance Uncle Sam may well confiscate our retirements from IRAs and 401k’s to finance government programs to spread the wealth? I foresee losing most, if not all, of my retirement for the pittance the government will deem as my share of the spread wealth in the (near?) future, and prefer to take my chances with precious metals, despite the tax consequences. I realize this increase in % would be above the advised % that has been recommended for years (should the sources be considered, too), but these are not ordinary times, are they?

    Would really relish your thoughts as soon as possible, seeing silver looks very attractive right now. Thank you so much, and keep up the excellent work you are doing to educate us. Enjoyed the college scam video we watched last night.

    Don

  50. Travis
    May 17, 2011 at 4:59 pm

    Look it seems to me that there are descrepancies in the defense of each side as always in a political discussion. The truth is this and you have to be blind to unable to visually interpret this evidence, “the economy is bad and it is not getting better.” The point to be proven is that while gold does not produce spending money neither does money itself. Simply put…you do not lower debt by spending sh**loads of money at a time. True government must save but we can’t; our country is a consumer based cess pool of obese, pharmaceutical-crack whores, addicted to reality television. College tuition is a huge f**king problem and is going to be everyones if not fixed rapidly. The movie is right that the government messed it all up years ago, that doesn’t mean “Hey stupid Americans give us control again so we can f**k it up again!” To sum it all up college should be nearly free more people would go and create real competition. Once a college has enough people they privately should regulate how often people can attend based on actual performance i.e. grades; which they already do. College is really no longer 4 years for a BS or BA because most students are taking inflated summer courses just to make prerequisites for remaining core credits. This is a money making scheme through and through. If you don’t believe me go sign up for an entry level course and see how many semesters they offer its advanced. You can bank that its either offered in the summer or the following year meaning you lose a whole semester. Don’t sit out that semester or the government takes aways all you benefits and you must apply again behind even more people. Look there is no excuses, the best way for college is straight out of high school. Good luck everyone because its not the government thats the problem its us.

  51. rtorre02
    May 21, 2011 at 10:05 pm

    Schiff just called out the NIA as a penny stock pump and dump scheme, associated with Jonathan Lebed. They used their inflation arguments to build a database to make stock suggestions to their subscribers, so probably Lebed could profit from them.

  52. Prof. Dave
    May 24, 2011 at 8:44 am

    In all my years studying economics I have yet to meet a female that understands the basic fundamentals of economics. Most I have acquaintance with support interventionism while others co-relate politics with economics and are visibly short-sighted.
    The author of this article is blatantly mainstream Keynesian and clearly lacks the education to intelligently decipher economic information as cited by the call for mathematical equations as references and the inflation definition. Economics is organic and inflation is an increase in money supply leading to a direct devaluation of the currency which in turn leads to an increase in prices and costs. Simply stated the more of a currency that is in circulation the more that is available to speculate in stocks/commodities thus driving prices up, not down as ignorance would have us believe nor is it a supply/demand issue. Please educate ones-self first before debating issues beyond one’s comprehension level.

    • chris
      July 27, 2011 at 3:16 pm

      Hello Prof. Dave,

      If you could explain why it would be more beneficial to ‘borrow’ the “medium of exchange” into circulation VS ‘spending’ the “medium of exchange” into circulation.

      And, please, explain how “economics” is MORE than supply vs demand: Without, as you said, co-relating politics.

      In short, justify usury: Which, I believe you are attempting to do, weather you are aware of it or not.

      Unfortunately for mammon, math (not to mention ‘the big guy’) condems usury. Usury can only fail. It is impossible to be successful.

      On a side note, not that I buy everything he has to say, but have you ever read Griffins, the Creature From Jekyll Island? Very good eye opener.

  53. Robert
    May 28, 2011 at 3:51 pm

    what is so mysterious about the national inflation association?

    alot more mysterious are the policies and thieves who are destroying the economy of the country you live in (at least i am assuming you live here).

    do a little research on the history of the people who your heroes in DC are appointing to “fix” (you can take that word several ways) the economy. They are –exactly– the same people who the “other” party got paid to “fix” it for last time.

    wake up clownpants..

  54. talula
    May 31, 2011 at 3:32 pm

    UMMMMMMMMMMMM

    OK, the prices are going down…WHAT PLANET ARE YOU ON?

    • scandalousmuffin
      May 31, 2011 at 5:16 pm

      At the time the post was written, June 2010, CPI was slightly down (though not as down as in 2009) with drops in energy and housing prices. Although as a correction to myself, in technical terms, I think we were out of the recession by then.

      June 2010 http://www.bls.gov/cpi/cpid1006.pdf
      Most current chart available April 2011, http://www.bls.gov/cpi/cpid1104.pdf

      Prices currently are rising as the economy grows.

  55. watson
    June 1, 2011 at 5:30 am

    first off this seems like a very very complex issue(s)… Even if U are a skeptic of the Nation Inflation Association you can not deny some of the facts they bring up about college being a big skeem and the dollar being a fiat…..SOmewhere along the line It just is what it fcking is no matter whos right and whos wrong !!!!I wish America could get passed the whos right whos wrong war, and of course the corruption through out so many Levels of power, and just do the right thing and try to fix these Issues

  56. Lim Lynn
    June 12, 2011 at 1:00 pm

    It’s safer to say NIA disinformation agents since there are causing fear among Americans. Moreover, I notice some facts were false. Either, there are serving Rothschild purpose or just ignorant that certain facts false. I hope that they won’t reduce number of graduates with University degrees just to increase chances of China and India to increase theirs. I disagree with their views that more should be gold miners, oil experts and farmers since you might not know that oil can run out or not while farmers even if there is enough numbers of them won’t change the expertise field of the country.

  57. Holly
    June 12, 2011 at 8:04 pm

    Dear Muffin….gold has “no intrinsic value”? I think you like to hear yourself speak that’s what I think. I would also think you’re an absolute bore at parties, spouting off 50-cent words and hate speech rather than opting for a good debate with a professional or educated demeanor. When you understand “intrinsic value” you will understand not only precious metals and their requirement in world economics but perhaps you will also come to understand life.

  58. scandalousmuffin
    June 12, 2011 at 9:00 pm

    Dear Holly [ellipses] Your opinion on my ability to entertain and politick at parties is most enlightening. In my newfound understanding of life, I will invest my entire life savings into gold, which, although is well below its 1980 peak of $2,300 an ounce in inflation-adjusted dollars, will no doubt save my life in the upcoming economic apocalypse.

  59. chris
    July 27, 2011 at 2:46 pm

    Usury, my friends … we are all arguing who is right, who is wrong … don’t you get it … the usurer loves that we are distracted from the root cause of what we are bickering about.

    Why does government borrow at interest, that which it has the ability and obligation to create itself, for free? It is supposed to be governments most sacred and conspicuous responsibility after all.

    Have you been distracted enough to not know or understand this?

    Governments can either issue a “note” based on the credit of the people OR they can issue a “bill” based on the credit of the people. One benefits the people and the other fattens the usurer. Ironically, both options available are based on THE CREDIT OF THE PEOPLE.

    No government has “credit” … all “credit” is derived from the people. Living flesh and blood soul’s are the only sourse of credit. And it is guit-edged. Is your guilt-edged credit benefiting the many, or the few?

    Once a nation parts with the control of its credit, it matters not who makes the laws.

    We are currently beholden to the “bondswoman.”

    Aside from “ownership” being a rediculous illusion, a “medium of exchange” should at least be honest or righteous. What we have now (central banks – folks, we’re simply seeing the damages of ‘coin clipping’ all over again, and it will destroy this empire) allows for the usurer to be ‘unjustly enriched’.

  60. RJP3
    December 13, 2011 at 4:42 pm

    This guy is a scam artist — if you can not tell that just by looking at him you are the fools they are looking to STEAL money from.

    Sorry — the ENTIRE concept of the video is only FOR dumb people who think a college education is to “get a job”. Sorry NO getting an education is about becoming educated to the SCAMS. Take business courses, communication courses, advertising courses, psychology courses, sociology courses, political science courses — and learn how people will be trying to manipulate and steal from your for the rest of your lives — then you will not be trick by SCUM like this guy and inherited wealth TRASH like Steve Forbes.

  61. RJP3
    December 13, 2011 at 4:43 pm

    Hey forget about getting educated — use your life savings to buy some gold from me. Then you can be rich and stupid your whole life. (Most likely just stupid.)

  62. Lianaki
    April 20, 2012 at 10:37 am

    In my opinion, no economy is bulletproof. Ever listen to old people’s recollections, read a book like “Hard Times”, or talk to someone from another country? Ultimately, a complex economy is a living system with a staggering number of interactions, internal and external drivers, feedback loops, and variables – some obvious and well studied, some elusive and poorly understood. Even the experts often struggle to accurately predict economic twists and turns, particularly timing. I humbly advise that you accept a degree of uncertainty, and prepare for a variety of outcomes. Then sleep well at night.

    • scandalousmuffin
      April 21, 2012 at 5:27 am

      Why so humble? Everything you said is demonstrably true. No need to go inserting “in my opinion” before common sense.

  63. prtfw!
    May 5, 2012 at 1:47 am

    well lets just say I believe the gold run is done… there are benefits to investing in silver but not to the extend NIA is promoting… yes precisious metals gard agains inflation, yes there may be a lot of money to be made trading these commodities even if not due to fundementals but due to psychology created by sources like the NIA; gold is hardly used to for production… you make into jewlery then it can gets “cash for gold”-ed and then melted and then made into more jewlery… gold is a metal where investment and jewlery (which is also a non-consumption or investment type demand) demand covers the majority. only 12 percen of gold approximately is being used up and of the supply over 30% is recycled… in my humbling and short trading career, I have learned that when everyone is talking about something, that thing is likely overbought and I need to carefully get my ass out… I had a great ride on the gold train since 2008, I am now mostly out… the way theses NIA guys talk about gold and silver does not show the whole story… and is very deceptive for the folks who are not familiar with the investment industry… I can imagine hardworking humble americans selling whatever they have left of their home and assetes to buy gold and silver coins… undoubtedly the financial state in the US is almost an impossible chanllenge but citizens need to do their own research and thinking… I hope films such as these act as a lead, a direction for knowledge…. not as any kind of investment advice…

    • prtfw!
      May 5, 2012 at 2:11 am

      sorry I forgot to mention… the president of NIA is also the president of a penny stock picking, newsletter sending, online investment shop…and I feel there is something off with this picture…

  64. kyle
    September 27, 2012 at 5:06 pm

    I read your essay, I like it a lot. I have sat on the sidelines and watched what stocks do when the NIA people say buy it, reason being I didn’t want to get trampled by a short term squeeze, or some variation on a speculative price change.
    Basically, it looks like the NIA picks stocks with a low number of outstanding shares. Obviously, one reason they do this is because any publicity at all on a stock with a very limited number of shares is that the stock will experience more dramatic and significant price swings then a company with more shares out on the market.
    The NIA made incredible amounts of money when they recomended BVSN because they bought shares relatively low and sold at prices 3-5 times their purchase prices. They disclosed this, and I guess its legal because they still exist.
    But, and this is kind of important, within their goal of identifying good prospects for periods of high inflation lies a sound strategy where a stock with less shares available will certainly have a stronger pressure to rise than stocks of companies with more shares available, holding all else equal. Therefore, they are being forward with their strategy, being succesful, and giving people like you and me 2 opportunities to capitalize on the price swings. One on the way up, and shifting on the way down. BVSN is at 8.90ish. So if the NIA does it again and pushes the price back over 40, there’s no reason not to start looking at shifting it when it drops back to logical levels.
    I think the NIA is shady at best, but I also think they are mathematically correct in their assesment of the markets. If you happen to own BVSN now at a low price, and the nation experiences inflation, it is highly likely that a product that would experience the most inflation could be shares of stock of BVSN.

    • kyle
      September 27, 2012 at 5:08 pm

      Phone autocorrected all “shorting” to shifting. I appologize for the confusion

  65. December 13, 2013 at 8:21 am

    Fantastiс Webpage, Maintain the benefіcial job. Thanks a lot.

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