obama to ask for debt limit hike says treasury, page-22

SP the inflation rates from Shadowstats is hardly hyperinflation by anyones measure. I think inflation has been higher than even Shadowstats says through the 90s and 00s. Whats been masked is the massive growth in asset prices , inflation is about the quantity and velocity of money. It seems odd to count bread and milk and not assets, when assets are where all the printed money has flowed.

I also ask the question "why are shadow stats methods relevant" He measures inflation how it was formulated in the 70s, why were they right in the 70s? (re read that last one) I dont credit the inflation numbers in th 70s to be anymore credible than they are now. They dont even include the number one cost of most people (housing)

If you factor in asset deflation the overall trend is negative, one of the great ridiculous notions of modern economics is this notion that housing should not be included in measures of inflation. If your bread and milk double in price its high inflation, if the cost of a house triples in price its called investment growth ???. This is why the inflation figures are understated for a decade , most of the inflation was borne in asset sectors not measured by inflation.

Everything is deflating , whether its in China , US , Europe or Australia it's coming to s slow grinding halt.

We are in AUD crash territory for the next 12 months the most important number is the AUD gold price

Unless you own USD or have US assets or you are a US citizen then USD gold is immaterial

People need to realise that GFC 2 will hit the commodity countries worst of all.

Sinclair says the USD is going to the doghouse because of money printing. All Im saying is its already there and Europe, China, Japan are ahead of the US in the line. My diagnosis is that a form of hyperinflation was masked by the derivatives systems. Ive been building banking systems for decades, there arent many of I havent had exposure , the way they let banks account for derivatives allows them to hide their true financial situation . The true total insolvency of the system is hidden by derivatives,hyperinflation has already happened, its my theory that it sits hidden in the derivative cloud.

The Fed could hyperinflate but I suggest it needs a 100 trillion to even get close and they would probably need the same a few years later. The political system will revolt long before that is allowed to happen.

We are being drawn closer to the US

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Instead, Colonel Angevine argues the alliance between Washington and Canberra will become ''the No.1 alliance'' as China and India rise - more important to the US even than NATO or Britain.
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The US should thus make plain its role as guarantor of Australian security, allowing Canberra to soften the concept of defence self-reliance (known as the ''defence of Australia'' doctrine) which has underpinned the nation's strategic thinking since the late 1970s.

Read more: http://www.smh.com.au/national/defence-white-paper-wrong-says-us-officer-20110530-1fd02.html#ixzz1hs0rbJeL

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Its very odd for a serving US senior officer to call out that an Australian alliance as more important than NATO without very good US government support.

I suggest the recent basing of US Marines in Darwin is a sign this is proceeding.

West Point graduates are taught to develop strategies that are dynamically reactive to changing geo political environments , for them to nominate Australia so highly they must be reacting to a scenario they see as having some probability of playing out.

In a deflationary global collapse a Australia, Canada , US and Brazil alliance would control nearly every commodity supply route in the world, allowing China to be squeezed.

The Chinese squeeze on rare earths is probably the first shot on a commodity trade conflict