This article is utter nonsense since it has multiple self-contradictory premises, such as the government can’t afford to pay its promised entitlements, yet quantitative easing will occur, yet a recession will also happen, oh, and wealth will be lost due deflation of bubbles such as the stock market collapsing.
That’s not what’s going to happen.
What IS going to happen is that the government WILL pay entitlements with unlimited fiat money obtained nearly for free from the Fed and all of this money will result in inflation (not deflation), and the inflation WILL result in economic stagflation, not a classic recession.
It’s also extremely unlikely that the Fed or the government will allow a loss of wealth triggered by a stock market collapse, as (once again) the Fed will simply pump unlimited conjured fiat money into the market to prevent that from happening, again with inflation and stagflation resulting.
It is true that massive wealth WILL be lost, but it will be lost via inflation and it will hit everyone but the wealthy who have the means to weather inflation by buying stuff like gold, silver, land, real estate, and factories. For the rest of us? Nothing but the hidden theft of the hard-earned savings of our label quietly transferred to the wealthy and the government (and hence to their minion of leeches and moochers) in the form of the silent tax of inflation.
At this juncture, massive inflation is guaranteed, the only question is when. Will it be 3 years from now or 10?
All one has to do to know for a fact that the above will happen is to read “The Creature from Jekyll Island”: A Second Look at the Federal Reserve”, which should really be titled “A History of Fiat banking and The Creature from Jekyll Island”.
I read an interesting analysis from the Asia Times (actually a very good site) that said that the forces of deflation (which we are strongly in) are being JUST offset by the monetary 'printing'. They've tuned the machine pretty well. If they squeeze another year out of it, I'd be delighted. It would give me another year to prepare for the inevitable collapse.