Mid 2009 and what is next ?
This graph expresses the Inflation Figures for the US in the 20th century
If you look at the graph, you will see that the Red negative areas show the inflation in a negative state during the major economic crises in the last 100 years. Whilst statements from governments about inflation seem to focus as good news in the medium to long term outlook. Negative inflation expresses Deflation and a economy in serious Recession or Depression.
The US and UK governments are assuring that both economies, will have major inflationary issues, and in contrary to the above graph, Inflation with the most serious Recession of this century, if not Depression will be the outcome. Figures of 6 and 7 percent retraction of these economies is well understated 12 to 15 percent is a conservative guess and in reality it could be worse, but not better! They attempt to cover the issues using their control of information, by slowly feeding the real position, so that the people get used to the poor health of the economies whilst not being aware of just how sick they really are.
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Peter Schiff and Max Faber on the subject of inflation 28th May 2009
Another peace in the jigsaw will be the continued loses of the banks, due to the economic environment and lose of income through low interest rates, both in the US and its FED and UK and their BoE, amongst others. Lets not forget how banks make their money. I stated some time ago back in late March 2009, that I believe a large banking group is likely to collapse around September, October 2009. This video explains a number of the reasons why I said this and will expose the next stage of the crisis.
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