National Inflation Organization believes inflation threat real

PRN - GHN News Editor --The National Inflation Association today alerted its members to inflation possibilities and how it remains a major risk.



The organization looks at the various calamities of reduced GDP growth,
bailouts, stimulus bills, cash for clunkers and other efforts to save
the financial markets.

NIA believes that GM's recent
announcement about sales decline is a signal the U.S. will have a
decrease in the GDP in the third quarter of the year.  This will result
in a massive sell off in the U.S. dollar.

All of this leads to the potential for inflation, according to the NIA.

Certain economic advisors like Christina Romer,
outgoing Chairwoman of Obama's Council of Economic Advisers, want more
government spending and less taxes as a way to bring down
unemployment.   But the NIA worries as it believes that combining
government spending and less taxes will bring about massive inflation.

Other
inflation signs include the surging prices of gold and silver.  Chinese
economists are also calling Japanese debt less risky than American.

The
U.S. may soon have no one to borrow from, NIA details.  That means it
will be forced to monetize, which will create more problems.

There are now 50 million Americans on Medicaid, with annual Medicaid costs rising 36% over the past two years to $273 billion.
The recently enacted health care bill, NIA believes, in adding 16
million more Americans to Medicaid beginning in 2014, may find there
isn't enough money to carry out its promises because by that time the
U.S. government may be broke.

Add
to that issues involved in economic recovery as jobless benefits
continue that allow Americans to stay unemployed, or at least that's the
opinion of NIA.  It does recite the serious spending that has occurred
to maintain benefits for unemployed workers, swelling unemployment
spending to quadruple amounts since 2007 to $160 billion annually.

Food stamp costs have also surged 80% during the past years and is now $70 billion annually.

NIA
believes the U.S. is headed towards an economic collapse and is
presenting a documentary to reveal it that will be released in October.


It is these rising costs and the fears of inflation that form the platform of Republican positions, although the specifics are less defined.

The NIA report hopes to make them clear but offers no solutions.