No links, just straight talk

Three years ago, when I started this blog, my macro thoughts and ideas on the economy and global finance were largely ignored and considered extreme (to the shiftless, my thoughts are still considered extreme).  Hence, my blog posts were long and esoteric to most.  As events have unfolded, and as my accompanying thoughts are no longer considered on the fringe, I have been able to cover more ground by merely providing links to articles--sometimes even from mainstream media outlets.

Having said that, most are still confused, so I will try to distill the main points to the best of my ability.

1) individuals, families, small businesses, local governments, states, the Federal government, and most developed countries still have huge debt problems which have not been addressed structurally, despite post-2008 "financial regulatory reforms".
2) emerging countries still enjoy rapid GDP growth, but clouds are lining up on the horizon for them too, as our interconnected global economy is USDollar-based, and the reserve currency is being debauched by a reckless Fed and corrupt politicians.
3) the deflation/inflation debate is over.  Inflation has won--and will win, perhaps morphing into something far worse than a deflationary contraction.  Hyperinflation can collapse sovereign nations overnight.
4) falling US home prices and stagnant wages do not indicate deflation.  Home prices are falling because real estate is largely purchased using credit.  The credit bubble has collapsed--therefore, assets normally purchased on credit (e.g. mortgages) will experience price declines due to lack of available credit.
5) on the other hand, consumable items are soaring in price due to the inflationary monetary policies of the Fed and US Treasury--they are printing currency out of thin air.
6) food and energy inflation is why the citizens are rioting in underdeveloped countries in the Middle East and Africa.  Sure, they are also protesting oppressive governments, but that alone is not why people take it to the streets.  They risk life and limb being in the line of fire because they cannot feed their families.
7) food accounts for approximately 10% of US household budgets.  In poor countries, 75% of their household budget may be allocated toward food.  When Americans see our food and energy bills rise 20%, we will complain to our neighbors.  When Egyptians see their food costs rise 20%, they are wiped out and starving.
8) the "it can't happen here syndrome" is a fallacy.  It has already happened here in the 1970's during the Iranian oil embargoes, when we had gas lines, and even/odd days rationing.  With rising energy prices, all sectors of our economy are adversely impacted, because our efficient supply-chain infrastructure relies on cheap oil.
9) lacking cheap energy sources, mild inflation can turn into high inflation overnight, irrespective of the Fed unwinding its easy monetary policies.  Unlike the early 80's, when former Fed Chairman Volcker derailed inflation by raising short-term interest rates to 21%, current Fed Chairman Bernanke will be unable to raise interest rates BECAUSE HE WOULD BANKRUPT THE UNITED STATES OVERNIGHT BY DOING SO.  Deficits and debt do matter, Mr. Chairman.
10) having said that, expect a stagnant economy (despite media cheerleading a recovery), high structural unemployment, rising inflation, more quantitative easing in attempts to stimulate the economy, and the continued deterioration of the USDollar.
11) speaking of inflation and unemployment, both measures are understated by official US government statistics, in order to soothe the naive and trusting masses.
12) the stagflation will be a precursor to the final collapse of the USDollar--probably when it is officially removed as the global reserve currency.  Hyperinflation will result, as will a drastic reduction in US consumer purchasing power--and a precipitous drop in our standard of living.

I will leave the reader to formulate their own investment thesis based on the aforementioned scenarios, but understand that central bankers and governments will do all they can to surreptitiously manipulate markets and obfuscate the fact that they are destroying their currencies, destabilizing sovereign economies, and impoverishing billions of the citizen-class.  They will feel the pressure to print more money to fill the gaping holes of insolvency, and they will justify it as stimulative and necessary bailouts.  They are correct short-term, but longer-term, they are ensuring the financial collapse of the world as we know it.