America has gone Latin, and I am talking about the economy.  Historically, South America countries have had problems with high inflation — even bouts of near hyper-inflation.  Even today countries like Venezuela and Argentina still suffer from extremely high levels of inflation.  Despite the Federal Reserve complaining that inflation is too low, the ‘realized rate of inflation’ — the inflation that 70% of the population actually experiences — is near the elevated levels of South American inflation.


The Federal government, given its ever increasing and massive debt load, is motivated to maintain a high rate of inflation, thereby reducing the real burden of repaying that debt.  As the realized rate of inflation is closer to 10% or more for most Americans, the majority of Americans are facing hardships.  Historical experiences from South America tells us that high inflation does not go away — it gets even worse until the normal working of the economy breaks down (such as can be presently seen in Venezuela).  In this light, we can see that the strong stock market is consistent with a high inflation economy, where interest rates are being kept too low.  This combination of high inflation/high stock market/low real interest rates has been repeated in South American economies on numerous occasions.  In every time this phenomena has occurred, economic turmoil ensued.  We shall have to see how America’s economy reacts.

As we have argued previously, HItler rose to power in Germany at a time of economic and social turmoil caused by hyperinflation.  We have also argued that the Beast, at the time of his ascension, will also be a tyrant and usurp any remaining vestiges of democracy.

In a somewhat related story, that remains unreported by the mass media, there are reports of ongoing demonstrations in Germany — against the US Federal Reserve.

The unprecedented policies of the Federal Reserve has global impacts, given that the US dollar is currently the main global reserve currency — but that is a whole different discussion.  The main question at this point is — why aren’t there demonstrations against the Fed policies in America?



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