http://www.financialsense.com/fsu/ed...

"...Income is collapsing, as is the sentiment of business and consumers throughout the G7. Inflation is in the PIPELINE and the policies necessary to address it are not being considered so it is set to skyrocket, signaling a coming wave of panicked policy responses by poorly prepared public servants who are being counseled by economically-illiterate IGNORAMUSES. What passes for wisdom and economic experience is actually politically correct GARBAGE and recipes for disaster. The solutions to these problems take YEARS to implement and become effective. I shudder every time I hear a leading WALL STREET or GOVERNMENT economist or public servant appear on CNBS.

For over 35 years now the printing press, aka fiat currency and credit creation, have substituted for fiscal policies of growth. Nothing is going to change now. The policies of capitalism and wealth creation passed away with Ronald Reagan and the retirement of Margaret Thatcher. Why is this so important? It is because TRUE capitalism is the definition of disinflation. Capitalism works to reduce inflation, and its underlying result is wealth creation and “more goods and services for less money. This creates SAVINGS and new, hardier competitors/providers replace inefficient established businesses. It is survival of the fittest as defined by Charles Darwin in describing NATURE and EVOLUTION.

In their place, asset-based economies have been increasingly substituted for the industrialization which had created the bedrock of wealth creation in the G7. To call the G7 “industrialized economies” is just one more example of headlines substituting for reality. The G7 has de-industrialized for almost 50 years, industry has now moved to better climates in the emerging world. Societies which have no savings and do not invest in their futures are like farmers who do not save seeds to plant from previous harvests and now have no harvest. The G7 has planted virtually no seeds for over 35 years and squashed new growth under the heels of public servants and their entrenched elite and corporate constituents."