Oil is falling rapidly. Real estate is falling, gold is falling, car prices are falling. Wages are falling and have been falling for nearly 8 years.

When do we call it deflation?

Hold onto your money. If they don’t give the working and middle class a radical tax cut to get the economy going, we’re going to have a Japanese style deflation. The Republicans are going to try to block a second stimulus and that should put the nail in the coffin.

This is my second year of growing a big garden and it’s doing great. Next spring I’ll be making a hoop house so I can start growing earlier in the season. My brother’s been using hoop houses and he’s been harvesting for the last six weeks. If I can make alcohol for fuel out of the windfall apples in my yard, I’ll be in good shape to ride out the depression.

Paul

Related Posts:

• Trying to bail out housing is a nightmare.
• Why do we need a depression to heal the U.S economy in the long run?
• There is a huge risk of double dip recession is the government is not careful.
• Sen. Joan Bray on budget: “We’re in a very deep hole”
• Diminishing returns from stimulus demand forward programs. At U6 unemployment of 16.5% in bs BLS and closer to 20% in reality, a tax credit is only going to stimulate so much demand.

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