Posted on 08/11/2012 5:42:53 PM PDT by Signalman
The United States cannot avoid sliding back into a recession and Federal Reserve stimulus measures and government spending in general are powerless to prevent it, said financial author Harry S. Dent Jr.
The U.S. government, and consumers in general, have been on a borrowing-and-spending spree for too long now and the time has come to let the economy wane while the country pays off its debts.
That doesn't happen overnight, and the Fed will surely adhere to its mandate to ensure price stability and optimal labor conditions by rolling out a monetary policy tool known as quantitative easing (QE), under which the Fed buys Treasury holdings and mortgage-backed securities from banks with money printed out of thin air. This pumps up stock prices and pushes down interest rates to encourage investing and hiring.
The Fed has rolled out two rounds of QE since the recession began, injecting a total $2.3 trillion into the economy in the process on top of hefty federal spending programs.
Still, the Fed will intervene anyway, likely in September or in October.
Watch for slumping manufacturing figures or weak quarterly gross domestic product rates to serve as the
Such measures saved the country from an abyss but won't save it from a long-term period of slow growth and deleveraging.
"It is inevitable that we will head into another recession because what the stimulus did including the $2 trillion-plus in Federal Reserve quantitative easing — QE1 and QE2 they call it — this stimulus kept the economy from melting down, particularly the financial system and the banks," Dent told Newsmax.TV in an exclusive interview.
Today, however, baby boomers are cutting back on spending, which will dampen the economy and stimulus won't help there.
(Excerpt) Read more at moneynews.com ...
Unavoidable? When did this recession end? Why didn’t anyone e-mail me?
Stop it? Reckless "stimulus" and other wasteful spending are the primary causes of our economic problems.
At least holding spending to a minimum until Zer0 is gone.
There would be less perceived need to max out the country’s credit card if its own resource producing capability was not so stifled by over regulation at every turn.
Simply not mathematically possible without massive inflation.
Truth be known, the powers that be, are doing everything they can to control inflation, NOT STOP INFLATION.. The way the government solves their spending habits is make our money cheaper, therefore spending the cheap money to repay the debt that they WILL NOT control..
Bring back Ford’s W.I.N. buttons. WHIP INFLATION NOW! And turn those thermostats down in the winter and up in the summer! Now that’s a legacy.
How about the depression which is what we are really in and heading toward total financial collapse in the next 12-18 months.
OMG Terry, I remember the W.I.N. buttons, but haven’t thought about those in ages.. The mid 70’s and Nixon, Ford, and that Commie Peanut farmer, Carter, I can never forget any of it.. LOL
Harry Dent predicted Dow 30k a few years back.
Harry Dent predicted Dow 30k a few years back.
I’m a cook, too. Wife is an even better cook. We’re interesting in exchanging some recipes.
I still can’t figure why the DOW has popped back up over 13K. I’m starting to believe the conspiracy theories that the very rich do manipulate it to suck the most possible cash out of the little guys who don’t know how to play the game and also don’t have the resources to become players.
Now, you're talking my language.. Come on by, whenever, and bring your bride.. My door is always open, just pull up a chair, grab some coffee, and lets talk.. :)
Where are you located?
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