Where's QE3?
does he mean “cyclical” bear market? “Secular” bear market makes no sense
“Austerity can’t work in a democracy” what does that mean?
1. TAKING MONEY OUT OF AN ECONOMY AND FILTERING IT THRU A GOVERNMENT BUREAUCRACY WILL NOT GENERATE GROWTH OF THAT ECONOMY.
2. PRINTING MONEY WITH NO FOUNDATION WILL DESTROY AN ECONOMY.
3. CRONY CAPITALISM AND GOVERNMENT CORRUPTION WILL DESTROY AN ECONOMY.
4. TAKING GROUPS OF PEOPLE OR INSTITUTIONS OFF THE TAX ROLLS WILL DESTROY AN ECONOMY.
5. UNFETTERED GOVERNMENT LARGESSE WILL DESTROY AN ECONOMY.
6. GOVERNMENT CONTROL, THRU OVER-REGULATION, OF FREE MARKETS WILL DESTROY AN ECONOMY.
[If the government reduces/cuts spending, won’t that drive us to a deflationary depression?]
the big insight I have had is to start looking at things as biflationary (not inflation, deflation or stagflation).
GDP = MV
Everyone only looks at the M term, or maybe the V term, but they are both moving targets. Each sector will be different, but you could have pockets of high inflation and pockets of deflation. I’ve heard it termed screwflation, everything you do is screwed. Bernanke gets away with sying we have low inflation because he’s averaging inflation and deflation, but we all know we are in an economic collapse.
bump
As opposed to a religious bear market?
My thought......
Two problems
Deficit
Debt
The spending reductions are to eliminate/reduce deficits
Eliminating deficits stops debt growth but does not reduce the debt. The debt, that is the humongous debt, can not be repaid. The debt must be inflated away. The effect of compound inflation and the marginal tax increases from the inflated wages will shrink the debt. Some growth thrown in will also kick in some additional revenue, but inflation is what is being counted on.
The process is not merely American, it is global (except for Switzerland where it is reported first hand that a diet coke presently costs the equivalent of US$12)
Zulauf is a permabear. He has been predicting doom for the past 20 years.
Of course, this prediction may turn out to be correct, but his position is not exactly news.