After the housing-atm, record deficits, record trade imbalance party we just threw, the only way I can see the US Government paying their bills is to run that printing press... Here's an article on just that...
Economist John Williams says ‘real’ unemployment and inflation numbers -- figured the old-fashioned way -- may be two or three times what the government admits.
In fact, reading this article, you will conclude that there's no way out, short of running the printing presses. The problem with that end game: At some point, foreigners will revolt. One can only hope that, somehow, there will be a way out. But without an understanding of the issues, folks will have no way to react as events unfold, and adjust their assets as we get more clues as to how all this will play out.
He goes on to point out that folks really aren't doing that well, which is why their incomes aren't growing, which is why they've borrowed money. And that's why understanding the housing ATM is so important -- because as that sputters to a halt, folks will be stuck in the same place they were before (which precipitated the borrowing, i.e., not enough income growth). Only now, they're going to be stuck with incremental debt of their own creation.
March 08, 2006
Get those printing presses ready
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4 comments:
Government at ALL levels is about to hit the wall when tax revenues fall below their spending requirements. The feds can create "liquidity" (ie. print money) literally out of thin air. Pols at lower levels will be reaching into the pockets of anyone and anything that owns assets. We live in a nation where half the people now vote for a living, so watch as the fun begins later this year.
Throughout history governments have always, with no exceptions, inflated away debts denominated in paper currencies. Why should the fate of the U.S. dollar be any different than the hundreds of failed currencies that preceeded it?
>> Why should the fate of the U.S. dollar be any different than the hundreds of failed currencies that preceeded it?
Because this time, it's going to different.
Or so I've heard...
We know this will happen one day, and obviously we feel like it SHOULD happen, if there is any justice or truth to age old addages of financial wisdom.
Sadly, I think the world will put this off much longer that we all expect/hope. This will make the reality bubble grow and not pop until the popping wipes out more than the false wealth. I don't expect it to happen tomorrow, but when it comes, expect to cry, not laugh, at the results.
denver investor is on the mark.things just keep creeping along whistling past the grave yard.cnbc is a joke it is the mouth piece of the wall street hype machine.people seem to have forgotten 2001 as cnbc actualy had viewers then hyping all the way up and down.do people really think pro investors make money buy watching cnbc?
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