Happy Sunday... : (
Economic reality trumps all. Three generations of deficit spending, unfunded entitlements, huge unsustainable debt has weakened Western economies and is eroding the culture. Financial gurus,all Keynesian, are squandering huge amounts of capital with their financial gimmicks, printing and bailouts. These “experts” (Bernacke et al), are harming the societies they purportedly serve. All is designed to maintain the high levels of consumption despite non productive behavior. It will all end badly. Things will get ugly.
No more “if”. It is now “when” and “how”.
http://www.youtube.com/watch?v=mOHJKrxhBME&feature=youtube_gdata_player
There is a lot of truth in the article, but also some misses. The writer is correct about the PTB continuing to walk the tightrope between inflation and deflation. They are successful so far stopping both from going into a runaway.
I think they can do this for much longer than most people like the writer believe.
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The Day of Economic Reckoning Is Near
Economics / Great Depression IIAug 25, 2012 - 01:23 PM
By: The_Gold_Report
It is a deal with the devil: Governments churn out more and more cash for the promise of continued prosperity. But the day of reckoning is near, according to Doug Casey, chairman of Casey Research and an expert on crisis investing. As the epic battle between inflation and deflation continues on, Casey discusses his predictions for the new world market in this exclusive interview with The Gold Report.
The Gold Report: There will be a Casey Research Summit on “Navigating the Politicized Economy” in Carlsbad, Calif., in September. The thesis behind the summit is that governments have made a Faustian bargain, a pact with the devil, that saves the empire with overspending, but drives it to the brink of collapse by creating fiat currencies. Doug, where in that story is the economy currently?
Doug Casey: It’s extremely late in the day. Since World War II, and especially since 1971 when the link between the dollar and gold was broken, governments around the world have accepted the Keynesian theory of economics, which boils down to a belief that printing money can stimulate the economy and create prosperity. The result has been to create huge amounts of individual and government debt. It’s become insupportable. All it has done is purchase a few extra years of artificial prosperity, and we’re heading deeper into a very real depression as a result.
“Let me define the word depression. It’s a period of time when most peoples’ standard of living declines significantly.”
This is an important statement. My favorite word in the second sentence is “most”. The secret is to be in the minority in this case. Barring that, one must fall back to the idea of losing less than most others.
I think we are headed for mild inflation, not hyper or even high inflation.
The writer never touches on the most important new change in the world, one that can save America given the right leadership. Rapid development of America’s energy potential is the best way through the coming problems. Millions of jobs that actually produce things are just waiting to be activated. This would lower the price of oil, and keep the price of nat gas low.
America can break OPEC and rule the energy markets. What is required is an administration willing to work with the energy industry instead of against it. This doesn’t mean all peaches and cream in the near future, but it could cushion the worst part of the depression and help turn things around.
We have the technology and the labor base. We just need the political will to use both to our advantage.
you see, when you can get a simple easy degree, get a state job with great vacation/pension/wage/benefits and virtually can not get fired, why study physics/chemistry/engineering etc....
this might be the only country in the world where the really smart people are not always the best paid, and the ones with meandering simple degrees get the best....