“Meltup,” a documentary from the National Inflation Association, is a great way to learn about our nation’s current economic troubles and how you can prepare for the very real possibility of hyperinflation.
The film starts out by discussing some troubling economic data that reflects the true weakness of the American economy. Following the Wall Street bailouts of 2008 and massive stimulus spending in 2009, the U.S. has seen a short reprieve. Many think the economy is beginning to recover but according to NIA’s latest documentary, nothing is farther from the truth.
For example, more people than ever are dependent on food stamps and welfare to survive…in fact, 39.4 million Americans are currently taking food stamps, up 22.4% in the last year. And in 2010, the government will pay more in benefits than it receives in taxes – these figures alone should astound both citizens and policy makers alike.
The film also discusses cost projections for wars and new government programs and how they’re always low. For example, when the Medicare law was passed in 1965, the government projected the program would cost $12 billion in 1990. The real cost exceeded $100 billion that year. It’s now approaching ½ trillion dollars a year.
In 2002-2003, the White House claimed the Iraq War would cost between $50 and $60 billion when in fact it’s approaching $1 trillion mark…if you factor in long-term cost of taking care of veterans, etc., the cost could exceed $3 trillion!
With all of this in mind, NIA believes the U.S. economy is currently in what they dub as a “meltup.”
Since late ’08, early ’09, the stock market has gone up 70% while the prices for oil, gold, copper and other commodities (food) are up sharply. Many “Keynesian” economists believe this is a sign the economy is recovering but other economists and the NIA feel this is simply not the case. People are not demanding more resources and goods…their prices are increasing because of inflation.
The film also discusses changes in how the government calculates price inflation in an attempt to hide the true inflation rate…NIA conservatively believes the real rate of inflation to be at least 4% higher than the government’s stated rate of around 2%.
For example, the government’s calculation gives a lower weighting to goods whose prices are rising and a higher weighting to goods falling in price.
Inflation doesn’t necessarily mean rising prices but simply means the money is worth less. Therefore, it takes more of it to buy things.
The film also explores other ways people can deal with hyperinflation besides investing in gold, silver and other precious metals. While the film does provide good information on the economy and commodities, it does make some assertions without backing up their claim.
Nevertheless, you’re sure to find some valuable information on where we’ve been, where we’re at and where we’re headed.
It is all about the Silver. About to become a precious metal.
A couple of things to keep in mind. Platinum and palladium are used in catalytic converters in cars. With the rapid decrease in automotive purchases/production, the world wide demand for these two metals will have dropped significantly. Silver is also an industrial metal, but not as related to the automobile industry as platinum and palladium. Gold has significant demand from India and China as jewelry. If you want my opinion on where gold is going, have a view on these two economies and assume gold follows.