Things are not as bad as they seem . . . They are Worse, Much Worse

The Daily Reckoning, via 321 Gold ^ | January 16, 2003 | Richard Daughty (The Mogambo Guru)

[Cicero]

This is it, the Rant of the Year. And it's only January. A must read.

[MonroeDNA]

HOLLY COW!!! I didn't know things were this bad!

Dogs and cats, living together.

Should we stay home, and hide under the bed or something?

[Capitalist Eric]

When the rumblings start about changing the international medium of exchange from the dollar to some other currency (I have no idea what it'll be), that'll be the big signal that we're toast... That the US government is finally in the bucket so far that the rest of the world believes we're "officially" bankrupt.

Like the USSR was... only in slow motion.

[arkfreepdom]

Like the USSR was... only in slow motion

I guess I missed when the ruble was used as an international currency in any but their subject states.

[FReepaholic]

>>...Gary North, who seems to have a real grasp of how things really work...<<

Wasn't he the guy that predicted massive problems with Y2K???

[ladysusan]

Dogs and cats, living together.



A fine movie!

[Trickyguy]

I sincerely Keynes is in hell, which is where people like Paul Krugman and Larry Kudlow belong. It's Keynesian
pseudo-economics that has gotten us in the trouble we are in. And Alan Greenspan should be stuck in a pillory in a
public square.

[Brad’s Gramma]

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[Cicero]

If I may say so, none of this is Bush's fault. He has inherited a horrific mess, which Greenspan and Rubin compounded. Now it may finally be starting to unwind.

And even if it isn't true, and Greenspan manages to keep all the balls in the air, it's a wonderful rant.

[RobRoy]

>>Gary North, who seems to have a real grasp of how things really work<<

I have a one word response to that statement, but it's worth repeating: hahahahahahahahahahahahaha ha...

[KayEyeDoubleDee]

Kudlow is not a Keynesian?

[KayEyeDoubleDee]

Whoops....

Kudlow is not a Keynesian!

[Nick Danger]

there is no way that inflation will not rise.

There had to be a guy who would stand up and say this out loud, taking credit for a prediction about as risky as saying that the Sun will come up tomorrow. We have had declining prices in a lot of sectors for some time now; in fact several articles have been discussing the heartbreak of deflation, which is currently wracking Japan and may be taking root here.

When things are near-zero, predicting that they will go up is not really that adventurous, or clever.

[Bob]

>>...Gary North, who seems to have a real grasp of how things really work...<<

Wasn't he the guy that predicted massive problems with Y2K???

Yep. North, Ed Yourdon, and Yardini(sp?) were preparing us for "The End of Life as We Know It". I guess I missed it.

[bert]

Too longh by far.

[The Duke]

That there will be a huge inflation from the free lunch proposed by the Republican stimulus plan and the Democrat stimulus plan is a given. That is the way that the lunch is paid for. That every final consumer will suffer the pangs of inflation along the way and that the poor will end up paying the entire cost of the inflation at the end, as those on the higher economic rungs continually increase their incomes in response, is also a given. That's the way inflation is paid for.

I had to stop reading a this statement, which I consider to be WAY out in left field. The very definition of inflation is that prices go up - including the amount YOU and I charge for our services. And, correspondingly, the value of all the money in Bill Gates' accounts (not to mention Bill Clinton's offshore accounts) drops.

In fact, inflation forces the wealthy to risk that wealth by starting new enterprise - it literally scares money out of the bank vaults.

In years gone by, when I was foolish, I allowed inflation to kill my bank account. However, this time around I'll take 10%-12% inflation and be grateful.

[thepitts]

As if anyone is really going to read all of that.

[Consort]

It's a Liberal plot.

[MonroeDNA]

OK, I read it twice. When filtered through the stuff, it kinda does make sense.

Can I ask the board, what's with the China thing and gold? Do they see something we don't?

[Moonman62]

If I may say so, none of this is Bush's fault. He has inherited a horrific mess, which Greenspan and Rubin compounded. Now it may finally be starting to unwind.

"No Veto, New Tone in Washington" Bush does deserve a good chunk of the blame, but Greenspan, Clinton, and Rubin did get the ball rolling.

And even if it isn't true, and Greenspan manages to keep all the balls in the air, it's a wonderful rant.

Greenspan has stepped into the shadows making sure he gets none of the blame. He's already stated that he's powerless to help the economy -- the same man who soaked up all the credit when the economy was doing well.