Not after this year they won’t. It’s an election year. But next year will be different and the BIS and other G8 nations will not tolerate the U.S. further exporting inflation. We will deflate by -20 GDP over a four year span. I calculated this in June 2007, so now a 3 year span... That was also before the recent oil spike, my numbers in oil price was $120, not $147! This year and part of next will feel like 1970’s stagflation but deflation is what is truly occuring.
Really a shift from Efficient Market Hypososis back to Save and Invest economy and dislocations is an under-stated word for what is coming down the pike as the free market is never fooled.
The twin city empire cut of America cut too deeply with there financial shenanigans this time. As my grandmother once said, ‘Don’t ever trust a banker, they love foreclosures!’ She of course lived through the Great Depression. America will go on, the speakeasy crowd and immoral bankers of the Roaring Twenties went on to become the Greatest Generation by 1946. We do have the mightiest military on earth, unlimited food supply and millions of innovators. Depression conditions won’t last several years this time either.
Ah, the study of economics...
It's obvious you have given this topic some thought and have some interesting conclusions.
Inflation or deflation?
I, imho, do not see the collapse as you do.
I do not believe we have unlimited food supplies and I am not a Malthusian. There's too much world demand for food and it will continue to grow. Populations are growing in many other countries and food stuffs will be needed.
The rest of the world may not need us nearly as much as it has in the past.
Oil will continue to rise and I see no factors to offset that in the near future. Again, other countries will continue grow as we may falter.
I think you are correct about stagflation...
The Fed will really have no choice but keep the money press humming to payoff U.S. debt and keep the Recession wolf from the door—it's already here.
If Obama is elected, imho, we will see public works projects to employ those who have lost employment in the private sector. A great military can only remain great if it's country is in good fiscal condition. I agree I our biggest gift is our innovation. Have a great day...