Uncle Ben and Turbo Tax Timothy are such a disgrace.

Aside from commodities, inflation is here already. The massive issuance of debt is inflating the PRICE of money called TREASURY YIELDS. Lenders are basically saying to stop the reckless borrowing already but if you want to continue this train wreck you have to pay up for it.

Meanwhile, as those yields continue to rise, albeit from historically low levels, it will actually perpetuate deflation elsewhere. Think about it. As inflation occurs in bond yields and interest rates, people and businesses will be forced to hoard and save more and consume less because they cannot afford to borrow and spend as their interest costs continue to go up. (They should save more anyway because they like our govt are too indebted but that is a topic for another discussion.) Hence, owned assets such as homes, stocks, autos, electronics etc.. should continue to depreciate in price because consumption and maintenance of these cannot be maintained from lack of incomes (unemployment) and future, diminished borrowing power.

In other words, these dimwits are exacerbating the downward trajectory overtime instead of their intentions of doing the opposite. The government data on economy for now is simple artificial support and “less bad” bs which may help to continue to prop up markets for now but the end game based on the above is ugly vicious unproductive cycle down.

Related Posts:

• 1929 and 2008 Credit Crisis - The Great Depression I and II.
• Where is your money going to go?
• This is only a delaying tactic.
• Go long the dollar and the yen even though they’re ‘terribly flawed’.
• Bernacke has two choices, neither of which are good.

Leave a comment