In yesterday's blog, the one prediction which generated the most public and private questioning of my already dubious sanity, was my belief that we will see civil disobedience and riots resulting from key shortages of certain necessities. I didn't site a link, as I hadn't written on the topic before, so I will go into detail today.
I don't think that the notion of some sort of coming hyper-inflation is a stretch by any means. The Consumer Price Index (CPI) is not "restrained", as claimed by the adminstration and the Federal Reserve. According to the Bureau of Labor and Statistics (BLS), inflation troughed in mid-2009 at MINUS 2% and has since risen to nearly 3%!
As I've mentioned many times before, an excellent website called "ShadowStats" (http://www.shadowstats.com/), adjusts currently reported numbers to the methodology used prior to revisions in the algorithms employed during the Clinton Administration. According to Dr. Williams, who makes the adjustments, the rate of inflation bottomed at an annual rate of 1%, but has now jumped to 6% in only a few months!
In the 1970's, as inflation began to super-heat, then President Nixon imposed "wage and price" controls. It was a disaster and led to higher unemployment, lower economic growth and shortages of certain items, such as gasoline. It is possible that the experience of "Richard E. Nixon", as Archie Bunker would say, will be repeated by the Obama administration as the result of a clammoring for relief by hard hit Americans.
Shortages could occur for a variety of other reasons, such as a renewed economic slowdown, increasing trade barriers, war or a plethora of other possibilities!
Should the Obama Administration succumb to the desperation of the populace and impose wage and price controls, the shortages will recur. The U.S. is already experiencing some civil disobedience. Riots have occured in Great Britain. Therefore, could my prediction be so far-fetched?
I truly hope this prediction is wrong, but I'm afraid it won't be. Assuming I am indeed correct, are you prepared? If not, why not? Especially now that you've read the blog!
Thanks for reading!
Still don't think my prediction has merit? You know what to do! TAKE ME ON!