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Health & Fitness

Questions From kk

I applaud kk for asking quality questions, and so I thought it better to offer a quality answer with pretty chart rather than a congested mass of ideas in the comments.

Question 1: "So if inflation is so great (I assume you mean high) why is federal retired/social security that are tied to inflation (assuming you mean increases in the Cost Of Living Adjustment) non existing (not increasing)."

Last week I blogged about the "We can do better rally,"  and connected it to investigative journalist Greg Palast memo exposure with huge implication.  At the heart of everything we are fighting for is our money.  We have been robbed, and indeed the hand is still in the pocket, of both our government and big business.

This is called fascism.

Through these collusions the government has had to find ways to decrease the growth in social programs like Social Security, Medicare and Medicaid.  Knowing that their policies were inflationary, it was decided that rather than fight inflation with policy, they just changed the way inflation was calculated.  

Problem fixed.

Chris Martenson covers this in:Crash Course: Chapter 16 - Fuzzy Numbers

At about the 8:30 mark he explains in no uncertain terms that due to the change in "how" we calculate inflation, which occurred last and most profoundly in 1995 under Bill and Newt I might add, that payments are likely 70% lower in actual purchasing power due to the change in calculation.

Question 2: "Why if the profits are so poor that corporate america is sitting on so much cash?"

In 2008-2009, when the market last crashed, it caused the lending rates and capital to seize up in the system and corporations had no cash buffer on hand to deal with the lack of credit in the market.  Corporations and banks were wiped out, and many other were brought to the brink.  Companies are holding cash in reserve because they dont want to get caught with their pants down again.  Most Americans did not learn their lesson in 2008, corporations did.

I wish I could embed images, it makes this easier to understand so please correspond these comments to the images referenced above.

Manufacturing is measured by the ISM report.  To read this is much easier than you think: A reading of 50 means things are neither expanding nor contracting.  A reading of 55.7 means our manufacturing expanded.  But notice near the middle you have "Customer's Inventories."  During the collapse, companies that had no idea it was coming suddenly found themselves with stock-piling inventories and no cash, and so they had no choice but to lay people off until inventories were back down.  This is what is reflected in unemployment claims numbers as they rippled through communities.  This time it is more likely they don't want to be caught off guard again.

Question 3: "Why has, (for) example, oil companies making record profits?

"We use a lot of fuel," would be an easy answer.  But reality is that retail gas sales continue to plummet.  This is not a factor of fuel efficiency.  If something came along that gave us 40% more fuel efficiency I think we would have heard a whole lot more about it.  This has to do with the fact that after taking us off the gold standard we entered into an agreement with global oil cabals to create was is called "The Petro Dollar," meaning oil was sold only in US dollars with the implicit agreement we would provide military might in the region in exchange.  But as more dollars are poured into the system by the Federal Reserve (85 billion a month) they seek an investment and many are heading for oil and precious metals.  Although it is down, we saw oil well over $108 a barrel very recently.  Let's assume they have a 10% profit margin regardless of price.  Would you make more with $110 a barrel oil, or $50 barrel oil?

Keep'em on the ropes boys.  Oil prices can not drop!

Question 4: "why are the cooperates (corporations?) hording and being unamerican?"

Thomas Jefferson made a very substantial statement about Central Banks:
"The central bank is an institution of the most deadly hostility existing against the Principles and form of our Constitution. I am an Enemy to all banks discounting bills or notes for anything but Coin. If the American People allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the People of all their Property until their Children will wake up homeless on the continent their Fathers conquered."

Pretty sure we are pulling into the station on this one.

Let me leave with this last bit, when the US Treasury sells US debt there are only a very small handful of New York banks, including JP Morgan and Goldman Sachs, who can by law sell it to the Federal Reserve for fresh funny money.  ATTENTION: JUST A FEW HAND PICKED BANKS.  I present for you the S&P 500 Earnings Per Share (EPS) beats and misses by sector.  Hopefully it reaches the coveted, "and i will agree go(o)d money is the problem," threshold.

Before you click to look at the chart, guess first what sector of the economy is represented by that tall green line?

Peace kk and thanks for the excellent questions.

The views expressed in this post are the author's own. Want to post on Patch?

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