Esteemed Economist John Williams of ShadowStats.com Warns About Fed Policy Which Will Create HyperInflation

QE2 to Infinity & beyond - Helicopter Ben Bernanke

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John Williams, Shadow Government Statistics: Times That Try Our Souls

08/06/2010

The government is effectively bankrupt. Using GAAP accounting principles, the annual deficit is running in the range of $4 trillion to $5 trillion. That's beyond containment. The government can't cover it with taxes. They'd still be in deficit if they took 100% of personal income and corporate profits. They'd also still be in deficit if they cut every penny of government spending except for Social Security and Medicare. Washington lacks the will to slash its social programs severely, to change its approach to ever bigger government. The only option left going forward is for the government eventually to print the money for the obligations it cannot otherwise cover, which sets up a hyperinflation.

How to Fix the 2010 Depression ("The Secret of Oz trailer") - directed by Bill Still

"The Secret of Oz" (www.secretofOZ.com) directed by award winning filmmaker, Bill Still, and scored by composer Jann Castor, is now available at www.secretofOZ.com. The only fix for the economy is to eliminate the national debt -- NO MORE NATIONAL DEBT. But how can we do that? The national debt is increasing at an alarming rate. That's the secret embedded in the book version of the beloved children's story, "The Wizard of Oz".
"The Secret of Oz" has won the Silver Sierra Award at the Yosemite Film Festival and the Award of Merit at the Accolade Competition. It premiered it the Louisville International Film Festival on Oct. 2 and will screen on Nov. 5 at the Orlando Film Festival.

Bob Chapman "The International Forecaster" on the John Stadtmiller Show with Robby Noel

Budget director is leaving this summer, they might replace him with Laura Tyson. Congressional Budget office is saying 100 trillion in projected deficits.

Depression might last 10 or 20 years according to Bob if they raise taxes. The proverbial "Canary in the Coalmine" is California. When they fall, the rest will follow. In other states Billions might come out of pension funds.

Bob maintains that we still have a 1 1/2 years out yet. Obama is making mistakes that could backfire. Bob makes some other interesting observations. Arizona might move to not issue birth certificates to "anchor babies" (babies of illegal aliens).

Caller asks whats new with the E.U....Chapman says that Greece is getting closer to leaving the Euro and going back to the Drachma. What recourse do the German people have? There is tremendous dissent there especially with the increase of taxes there.

Half the Gulf is covered in oil and that is just what is visible. John mentions again about the methane gas and says the Gulf is dead. Bob wonders if the Gulf 'spill' will travel around the world...and calls it a false flag operation.

CLICK HERE for Mr. Robert Chapman bio also known as The International Forecaster.

Higher Taxes Guarantee A Depression Via Eric King's Blog on King World News

Eric King: Higher taxes are a trend around the globe in developed countries. The west is mired in an extremely harsh economic cycle, but politicians never learn. They love to tax, and when coffers run dry the solution is to tax more. When you are faced with this type of cycle, coupled with increased taxes you are guaranteed a depression.

By Andrew Atkinson

June 22 (Bloomberg) -- British Chancellor of the Exchequer George Osborne increased the value-added tax rate to 20 percent from 17.5 percent in the first permanent change to the levy on sales of goods and services in almost two decades.

“The years of debt and spending make this unavoidable,” Osborne told Parliament in London in his emergency budget today as he announced a package of spending cuts and tax increases to cut the U.K.’s record deficit.

The rate will increase from January and produce more than 13 billion pounds ($19 billion) a year of extra revenue by the end of this Parliament in 2015, Osborne said. “That is 13 billion pounds we don’t have to find from extra spending cuts or income-tax rises,” he said.

The VAT increase dwarfed other revenue-raising measures in a budget that sought to all but eliminate a deficit that reached 11 percent of gross domestic product last fiscal year.

The tax generates about 15 percent of total government revenue and retailers say the rise may dampen consumer spending as the economy emerges from its worst slump since World War II. CLICK HERE to continue reading this article from Bloomberg.

ECRI Index Continues To Plunge, Drops By 2.2 To -5.7, And Just 4.3 Away From "Guaranteed" Double Dip Territory - ZeroHedge.com

http://www.zerohedge.com/article/ecri-index-continues-plunge-drops-22-57-and-just-43-away-guaranteed-double-dip-territory

David Rosenberg:
Suffice it to say, when the ECRI was drifting lower in 2007, it got to -3.5%, where are we are now, in November and unbeknownst to the consensus at the time that a recession was only one month away. Remember that the economics community did not call for recession until after Lehman collapsed — nine months after it started; and go back to 2001, and the consensus did not call for recession until after 9/11 and again the economy had been in recession for a good six months).