OK here are a few ramblings:

Just when you thought the obvious could never be made to sound like a surprise, the talking heads in the financial circles of the world have proven just how far out of the realm of the normal and average they are in respect to the John Q Public. They were astounded that the Fed cut base by .50 points last week, yet I was at the flea market the the day before, what was I doing? Purchasing silver on the prospect that they would cut it at LEAST .50 possibly .75. Why buy Silver when the Fed is planing to cut rates? Well for one , what they are telling you is that they have no concept of how to actually manage the economy, and that somehow they feel that flooding the market with more make believe "money" is the solution to a recession. Take note: Increasing the DEBT problem in America does not include giving money away at a discount, when that money is noting more then a PAPER IOU. If some one is bankrupt, such as the average American, you do not extend them more credit. They have no ability to pay back what they already owe, how on earth do you suppose they will be able to pay back even more. So what happens: They extra paper hits the market by the Billions, added to the Billions that the fed fed into the economy during their little experiment a few weeks ago when they were taken by surprise again, when folks who do not make any real money, fail to pay back loans with dollars that are loosing value, on homes that they BORROWED against that were hyper inflated in value. ( M friend Borrowed against his home last year, The house was valued at over 125K ( two years before it was about 45-55K) So the bank loaned him "His Equity" and he spent the 125K of NON WORKED FOR money into the economy along with a few hundred thousand other folks doing the same thing. (Remember the Bank INVENTED the MONEY out of thin air, hoping that the value of his pledged home would continue to go up.) So what happened,, HOUSING POP. Not a surprise at all, yet now the same house would sell for MAYBE 80K, my friend already has 125K ands owes that much back to the bank. He could not sell the house right now if he had to. But then again he really already has the money, why pay it back at all... That is what thousands of folks are thinking anyway, and so the banks are going to have to foreclose and that will make more houses on an already glutted market. etc etc. OK Anyway when all this money imaginary money hit the market, Either through Easy Credit, Simply printing it and giving it away ( as in the bail out) or through the second mortgage game, The dollar, ( Federal Reserve Unit) was bound to plummet against similar paper Currencies around the world that did not have these problems in their economies. When the Dollar Plummets.. Gold and Silver move, in comparison to the Federal Reserve Unit, Upwards. Against other real objects, such as food shelter and clothing and oil, Gold and silver will maintain parity, which means that Inflation will become more obvious to the average American consumer as his dollar buys less and less.

The Game these LIARS will play on the American public to hide inflation will be to import more and more product from countries like CHINA which has their currency pegged to our Dollar so that they move together. Here is what they will say ///

You bought a Computer two years ago, the top of the line. It cost you 1000 Dollars, You bought a computer this year, The top of the line and it cost you 1200 Dollars, You say that's a 200 increase, they say no. it is a 200 Dollar decrease because the new top of the line computer is 400 Dollars better then the last one you bought. And they will do this with Televisions, Washers, Dryers, Air Conditioners, Refrigerators, Radios, Cars, Boats and almost anything else they can. YOU PAY MORE, yet they say you PAID LESS and those are their numbers they will put into the inflation calculators when they say inflation is at 3%.

How did this happen? it was a Study funded by the Government and the Federal Reserve System by The Boskin Commission which published its final report ”Toward a More Accurate Measure of the Cost of Living,“ In this report the NEW MATH or NEW MODELS of calculation took effect. This was back in 1996 under Clinton. The Report helped to lower Numbers so that the Government would not have to pay as much to CPI adjusted stuff like Social Security. ( That's why the raises in SS do not keep up with the grocery bills)


the CPI (Consumer Price Index) was at 1.1% back then and the Government said, this would cause us to have huge deficits in Government Spending, so we need to hide this.
( from an older article located at: http://www.financialsense.com/stormwatch/2005/0624.html
"The CPI, which is used as the basis for COLAs to Social Security and government pensions, if lowered as recommended by the commission, would reduce future entitlement payments as well as impact other government programs. The CBO estimated that by overstating CPI by 1.1% it added $691 billion to the national debt by 2006. By then the annual deficit would rise anywhere from $148 billion to $200 billion annually by overstating the inflation rate. In effect the government was overpaying because the actual inflation rate was much lower."
here are two examples of what the commission suggested and what the Government implemented:

Substitution
Up until the Boskin/Greenspan initiative surfaced the CPI was computed each month using a fixed basket of goods. That changed after the Boskin Commission. The Bureau of Labor Statistics (BLS) began using substitutions in their monthly computations of the CPI. If beef prices rose, it was assumed that people substituted chicken. If chicken prices rose, then consumers would switch to fish. If all these prices rose, well consumers would become vegetarians or maybe start eating Alpo.

Hedonics

Hedonics adjusts the prices of goods as a result of the increased pleasure a consumer derives from a product. A few examples will illustrate how removed the index has moved away from reality. Tim LaFleur is a commodity specialist for televisions at the BLS. In December last year he adjusted the price of a 27-inch television set for quality improvements. The 27-inch television set had a retail cost of $329.99. However, he decided the new model, which still sold for $329.99, had a better screen. After putting this improvement through the governments complex hedonic adjustment model he determined the improvement in the picture was worth at least $135! Taking in this improvement he adjusted the price of the TV by $135, concluding that the price of the TV had actually fallen by 29%! [1] The price reflected in the CPI was not the actual retail store cost of $329.99, but $194.99. The only problem for we consumers is that if we went to Best Buy or Circuit City to buy that TV, we would still pay $329.99.
Another example of hedonics at work is the way the BLS treats rising automobile prices. Mr. Reese, a specialist for autos, took a 2005 model car, which went from $17,890 in 2004 to $18,490 in 2005. After adjusting for quality items and making anti-lock disc brakes standard, the bureau adjusted the actual $600 price increase down by $225. The problem for we consumers is that the price of the car in dealer showrooms was still $18,490.

OK Silver and Gold:
More FRNS flooded into the economy equals a falling value (Parity) against reality. Gold and Silver represent effort and wealth verses Frn's which represent DEBT and Credit backed by Nothing. You might be able to hide inflation in the text books and on FOX news, however once reality sets in , supply and demand takes control.
Silver will GO WAY up and GOLD will follow, percentage wise. WHY? because it will keep pace with the real rate of inflation, which is in reality falling dollar parity against every thing.

There is only a certain number of goods in the world, even as there is a certain number of ounces of Silver and Gold available in the world, Yet their is an unlimited amount of FRNs and other world paper monies. Their limit is only the IMAGINATION of those on the printing press.

Yet they have what is called Legal Tender Laws forcing you to use them to pay taxes.

What happens when an unlimited demand meets a Limited supply?

What happens when people realize that, contrary to what they are being told, the ability of their "Dollars" to by life's staples erodes to a breaking point?

What happens when you wake up from a dream?