Posted on 06/22/2009 6:28:41 PM PDT by sickoflibs
If you realize both parties in Washington think our money is theirs and you trust them to do the wrong thing, this list is for you.
If you think there is a Santa Claus who is going to get elected in Washington and cut a few taxes and spend a few trillion and jump start the economy, and get our lost money back, this list is not for you.
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We are in for some very hard times my friends.
Isn’t Schiff preaching hyperinflation, not deflation, as this article lays out?
That's called: deflation.
If only we could print some more money, everything would be okay. Reminds of that skit on Saturday Night Live, when Jimmy Carter introduced his plan to end poverty. The answer was simple, he was going to make everyone a millionaire. In Zimbabwe, everyone is already a trillionaire. Maybe we could make everyone in the US a quadrillionaire.
Bump for later re-read.
Hyperinflation for certain things is from based on falling dollar. Inflation in the 1970s led to a bust for US in early 1980s. From above:”The folks at Grant's estimate the federal response to the current downturn to be 12 greater than that to the Great Depression, which prolonged that recovery for a decade. However, all of this government intervention will only spawn new malinvestments and later depressions. “
The Great Depression was deflationary, not inflationary.
But what about oil, energy and food prices, and metals? Gasoline and food hardly looks like deflation rising with demand dropping.
“Deflation” is how the markets punish surplusses. We don’t have surplusses in everything, particularly oil and food, however.
But the world has too many houses. Too many factories. Too many shopping malls. Too many cargo ships. Too many airlines.
Where there are surplusses, expect falling prices. Like salaries. See, we have too many jobs worldwide compared to demand.
In addition to Circuit City, Sharper Image, Goody’s, Gottschalk’s, Comp USA, Levitz Furniture, Chrysler & GM a number of the major banks should be on that list, if it were not for the tax-funded bailouts (give-a-ways).
One bank in particular, Goldman Sachs, is again issuing mega-bonuses for Sach’s top CEOs, (who already scammed bailout funds) likely in part this time with tax money they have no right to.
True. And this will be too, until the currency crisis hits. Which given how this govt borrows, that could happen at any time now.
The Deflating Bubble
Mises Institute ^ | 6/22/2009 | Doug French
***Where there are surplusses, expect falling prices.***
Bernanke doesn’t like deflation. The other side of that equation is the money supply and Bernanke has great control over that.
***See, we have too many jobs worldwide compared to demand.***
Demand is unlimited. You can never have too many jobs, only jobs in the wrong sectors.
Nope. Demand is limited by those who want to pay for jobs...fewer and fewer each day.
Where job demand is unlimited is on the recieving end of the checks...not on the paying side.
To say demand is not unlimited is to say that people’s wants and desires are not unlimited, which is false. Demand is restrained by income, but it is unlimited.
Given the income restraint, people decide what they want to produce (in order to consume, or “trade” for consumption) to maximize utility. Given that demand is unlimited and that it can only be satisfied by production, there can never be too many jobs in a free market. Given government intervention, there can be too many jobs in specific sectors (malinvestment) which requires a period of readjustment to correct, but not too many jobs in general.
***Where job demand is unlimited is on the recieving end of the checks...not on the paying side.***
Just as the worker wants as much purchasing power as possible and the employer wants to pay out as little as possible, so too does the employer want as much work from labor as possible and the worker wants to give as little as possible.
According to Harry S Dent, there will be a commodities bubble - the last to pop before the depression.
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