Grab Your Raft Because a River of Inflation is About to Sweep the USA Economy
Low interest rates - including mortgages are sticking around for a while. We are being told there is money everywhere. There is plenty of welfare for corporations.
But foreclosures keep rising and folks just keep going broke. Why should this be happening? Is it not true that cash is being pumped into the economy?
The gatekeepers are keeping billions of dollars locked in the, uh... vault. But so much money has been printed and borrowed from our children's futures that the gate is bulging enough to break. And break it will. When it does the result is inflation that that will bring back all those fond memories we have of the late 70's and early 80's.
Look closely at the consequences of near 10 per cent unemployment (double that if you use the statistical methods prior to the Clinton administration) and you will see that they are breathtaking. Assets and cash flow are seriously deflated because the capitalist engine is nearly out of gas. Unemployment is nearly 10% and underemployment of skilled workers just trying to survive is higher than ever. President Carter's economy and the Great Depression are the closest comparisons.
Even governments are squeezed. California is issuing IOUs and other states are shutting down for longer and longer periods to ease the pressure. Being a government employee just does not provide the security it once did.
It seems that it does not matter where you put your money. Though the free fall of real estate appears to have braked, homebuyers are still having a tough time getting mortgage money. And the equities market is still a roller coaster ride that is just too thrilling for many investors.
Interestingly, some major European countries are beginning to recover more quickly than the USA. Though many reasons can be cited a salient point is that they did not jump as deeply into the stimulus pool. The irony is astonishing when you consider that most of them are, for now at least, a few darker shades of socialist than America. Bond professionals are saying that the cranked up money printing presses are being used to keep interest rates low which. Low rates, overabundance of money that is not accessible is guananteed to keep the economy underperforming.
Bankers have decisions to make. Up until now the very large ones have chosen to keep the money you and I gave them to stimulate the economy as they work out their mergers and take overs. They are acting like bankers. Cannot really blame them because they know that during a recession assets take a while to appreciate and there are a lot of people out of work.
So they just stop up the supply so that nobody wins. But eventually everybody loses. Cash flow and asset depreciation lead to deflation. But what goes down in economics, must go up. When it does it will be because the dam is broke and when that river of cash finally starts flowing we will be swept away by inflation. - 23199
But foreclosures keep rising and folks just keep going broke. Why should this be happening? Is it not true that cash is being pumped into the economy?
The gatekeepers are keeping billions of dollars locked in the, uh... vault. But so much money has been printed and borrowed from our children's futures that the gate is bulging enough to break. And break it will. When it does the result is inflation that that will bring back all those fond memories we have of the late 70's and early 80's.
Look closely at the consequences of near 10 per cent unemployment (double that if you use the statistical methods prior to the Clinton administration) and you will see that they are breathtaking. Assets and cash flow are seriously deflated because the capitalist engine is nearly out of gas. Unemployment is nearly 10% and underemployment of skilled workers just trying to survive is higher than ever. President Carter's economy and the Great Depression are the closest comparisons.
Even governments are squeezed. California is issuing IOUs and other states are shutting down for longer and longer periods to ease the pressure. Being a government employee just does not provide the security it once did.
It seems that it does not matter where you put your money. Though the free fall of real estate appears to have braked, homebuyers are still having a tough time getting mortgage money. And the equities market is still a roller coaster ride that is just too thrilling for many investors.
Interestingly, some major European countries are beginning to recover more quickly than the USA. Though many reasons can be cited a salient point is that they did not jump as deeply into the stimulus pool. The irony is astonishing when you consider that most of them are, for now at least, a few darker shades of socialist than America. Bond professionals are saying that the cranked up money printing presses are being used to keep interest rates low which. Low rates, overabundance of money that is not accessible is guananteed to keep the economy underperforming.
Bankers have decisions to make. Up until now the very large ones have chosen to keep the money you and I gave them to stimulate the economy as they work out their mergers and take overs. They are acting like bankers. Cannot really blame them because they know that during a recession assets take a while to appreciate and there are a lot of people out of work.
So they just stop up the supply so that nobody wins. But eventually everybody loses. Cash flow and asset depreciation lead to deflation. But what goes down in economics, must go up. When it does it will be because the dam is broke and when that river of cash finally starts flowing we will be swept away by inflation. - 23199
About the Author:
My Market Friend is Paul Kluskowskis's blog. It is chock-a-block with current financial, economic, and market news. He is a managing financial advisorat T/R Financial Management Group. He has been in the business for over 10 years and writes extensively with numerous articles and three ebooks to his credit. Paul also manages the PINGP Work Control Center Mgr at Xcel Energy. You can gethis financial servicesand newletter at My Market Friend
posted by X - Men @ 12:34 PM
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