Posted on 03/04/2009 1:25:30 PM PST by 2ndDivisionVet
In the last five months, according to the Federal Reserve Board, the money supply in the United States has increased by 271 percent. It has almost tripled.
Have car sales tripled? Home purchases? Consumer spending? Corporate investment? Not only have they not tripled, they have all declined more sharply than they have since at least the recession of 1981-82, and perhaps since the Great Depression.
So where is the money? If it isn’t being spent, where is it?
It is being parked, squirreled away. Consumers are using it to pay down their credit card balances, pay off their mortgages, reduce their student loans, make the payments on the car sitting in their driveway — not the one in the dealer’s lot. Businesspeople are buying T-bills, investing the money and saving it. They aren’t spending, either.
But one day this recession — despite Obama’s best efforts — will end and things will begin to look up again. Then we can expect all of this money to come out of its parking space and get back on the highway of commerce. All at once. The inevitable result will be double-digit hyperinflation.
Since the spending and borrowing splurge is not confined to Washington, but is being mimicked all over the world, the inflation will not strike just one country but will be global in scope. The first global inflation in our history (except, perhaps, right after World Wars I and II), it will confront our policymakers with yet another unprecedented challenge and send them back, once more, to their economics texts. There, they will find that the only remedy for global inflation is global recession, a la Paul Volker. Having just emerged from a ruinous depression, nobody will be in the mood for more unemployment, but that is just what will have to happen to cool off the inflation and break the inflationary psychology that is likely to set in.
The point of this gloom and doom is that all this pain is entirely preventable. It will be caused by Obama’s excessive spending and trillion-dollar-plus deficits. This spending, of questionable utility in overcoming the current recession/depression, is so far out of line with what the economy can handle that it will do more harm than good when the inflation hits.
Proof that his spending will have little impact on the depression is the vast increase in money supply with no commensurate improvement in the economy. Providing money, via spending hikes or tax cuts, does not guarantee that the money will be spent. Tax cuts can be saved and spending increases, while surely spent once (on the initial project), can rapidly lose their multiplier effect as wage-earners on the government payroll bank their money just like those who get tax cuts will do. Getting out of this economic mess depends on consumer and business confidence, a faith that Obama is eroding with his looming tax increases as rapidly as he tries to kindle it with his excessive spending.
None of this should come as any news to Obama. He likely knows all this. But he is determined to pass his agenda of bigger government, nationalized healthcare and vastly greater spending even at the price of inflation and subsequent recession. He puts ideology first and the economy a distant second.
The stock market has figured out his priorities and is responding accordingly. One can only hope that voters also eventually realize what is going on.
BINGO ... and all those people that were in ARM's and got 'fixed' by O's plans .... they get off almost scott free.
And the middle class gets SOAKED when their treasuries become worthless.
Heh heh, you can always use that for your next tagline.
We need an inflation/deflation ping list for all the inflation and deflation predictions....
We could get a betting pool going
What do you suggest buying that can be resold at market value? Curious.
I'm sure they can come up with something that has the same range of atomic weights as naturally occuring silver ~ if there really is such a thing.
There is no way any steady state dynamic process (as in the economy) can abruptly adjust to such a step change without going into wild gyrations.
We are in trouble.
I think it’s closer than next year, I’d say late summer/early fall of this year.
bttt
I’d trade Carter for Obama in an instant. Carter had some substance, wasn’t anti-American, but was merely incompetent. Obama is an America-hating empty suit.
Well if that isn’t the cat’s muawiyah!
No one under 40 has probably ever been required to take an economics course. I was. Two classes in fact. And everything Dick says was echoed by my professors all those years ago.
No it wont. Drop touch of silver into nitric acid and you won't get silver nitrate or silver chloride when you add salt to the mix. I'd not be suprised if the density measurements are off as well.
But if it's part of jewelry ... maybe they can get it to fly.
Correction ... drop a touch of this DELFT silver ...
These are totally new elements never before seen ~ it’s just a way to stick the existing stuff together in novel ways (that business about getting two nuclei inside the same electron shell) ~ so we don’t know what would happen in your ‘spirment.
some groceries have come down in price.....but today I was going to buy some cream cheese and I was astonished that at Albertsons it was $2.79 for one of those little boxes!
when we have shortages.....due to closing of factories, and docks, etc and of businesses.....we will see price hikes in a matter of days.....
So then you move your money from the market into CD’s with big interest numbers a la 1980’s. Tons of money to be made.
Got a link? BEcause I’m about ready to call BS. This would have been huge news and stuff that Nobel Prizes are given out for.
You can do your own research. There are hundreds of thousands of boards referring to "super atoms". It's turning into quite a broad field.
And yeah, folks get prizes for finding this kind of thing.
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