Media Hiding the Truth!

Kia Ora,

Over the last 24 hours I have read two articles showing how the mainstream media either are hiding the truth or just accepting what 'experts' or governments say without digging into the background.

First there was the article in the Washington Post commenting on how Dictators even those who have raised the countries standard of living as in Tunisia need to look after their people or they get overthrown.

It goes on to say how the Tunisian President took actions to put things right that looked like it was desperation.

What they don't say is his efforts were futile as I said in last post because the US is 'printing' currency which causes inflation. Now this inflation is caused outside the US not in the US until they monetize it by buying debt. Which is what the Bailouts are doing.

Not only that but when the US, since its dollar is the international reserve currency in which most trade is conducted, prints more currency it forces other countries such as China whom are large exporters to do the same therefore exporting inflation as well as goods.

But the Chinese can see this & so are selling US Debt or using it to buy real assets. But at the same time they have used some of their own currency they have been forced to print to buy European debt which confused people. That was until someone looked at it & combined an earlier Chinese statement.
Mises and Austrian Economics: A Personal View
China has said it wants to buy 5000 tons of Gold. It appears despite claims to the contrary the US actually doesn't have any Gold any more(US Treasury claims to have 8000 tons but the Federal Reserve(that private bank) & the IMF claim that same 8000 tons as theirs)as Ronald Reagan allegedly found out when he tried to go back onto the gold standard.

European nations (except Britain because Gordon Brown allegedly sold all theirs) have an estimated 11,000 tons. So If China owns their debt they could ask for repayment in Gold.

So the US are causing inflation now both outside & inside the US. So no matter what measures the President of Tunisian took it was never going to work.

The Washington Post does not ask the question what will happen when the US sees the same issues hit?
Economics of a Pure Gold Standard
But then New Zealand is no different with media outlets parroting the line that food prices have gone up here due to international price rises. No its due to inflation caused by the US printing currency & most of our trade has to be in US dollars(the Chinese have recently taken to doing any trade direct with countries bypassing the use of the US dollar as reserve currency).

Now New Zealand has had a couple of small bailouts by international standard but it would appear at least on the surface(sometimes when you are close to soemthing you can't see what is actually happening) that New Zealand is not carrying out quantitive easing. In fact I have been told that by the Minister of Finance. I gree with him it is not a good idea to carryout quantitive easing but unless the government are prepared to follow the best option & just let everything fail then start again, they will have no choice.

Of course very few governments will follow the course Iceland took because the people asked for it. Painful but less painful in the long run than carrying on the way things are.

Now at some stage as an exporting country we are going to have no choice but to 'print' some currency. The reason is if the New Zealand dollar gets to US85 cents to one New Zealand dollar it is expected businesses will start falling over left right & centre. Result increased crime. protests, riots & maybe the overthrow of a government.
The Gold Standard: Building a World-Class Team (Business Plus)
Already here in Christchurch many businesses are on the edge after the earthquake with many not expected to survive after May 2011. The West Coast many businesses are in a similar situation after the Pike River Mine Disaster.

Then you have the Australian floods expected to impact of food prices not to mention weather related issues with food supplies such as wheat world wide.

Failure of the Soviet wheat crop was always seen as a scenario that could trigger a nuclear war during the days of the cold war & was why despite the rhetoric & trade bans the US always supplied Wheat to the USSR.
The New Gold Standard: 5 Leadership Principles for Creating a Legendary Customer Experience Courtesy of the Ritz-Carlton Hotel Company
The Chinese understand this & know that should things get bad they won't have to worry about the US but their own people. It is why they have been on the course they have been including using US debt to buy access to commodities & stockpile other commodities.

Comments from Germans who suffered during the 1923 hyperinflation say that right until the last minute the government told them all was OK. That rising prices were just part of the world system, but when hyperinflation kicked in, it happened so fast that no one was prepared.

Right now opposition politicians are calling for the cutting of GST(Goods & Service Tax) on food(why didn't they do it when they were in government) but that didn't help the President of Tunisia when he allegedly tried a similar tax cut.
Gold: The Once and Future Money
But of course both in the US & here in New Zealand people will be saying "It will never happen here" just because it never has doesn't mean it never will.

Conversly it is the time of opportunity.

http://www.foxhoundsecurity.co.nz