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Message: Re: No Inflation
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vhf
Jan 04, 2011 06:24PM
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Jan 04, 2011 07:17PM
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Jan 04, 2011 09:11PM

Jan 04, 2011 11:23PM

All I mean is that they are already stretching the plausiblity of the stock market going up everyday regardless of fundamentals or news. But, even though it is as obvious to you and I that this "Recovery" is nothing more than a pipedream..... denial will be the emotion that the populace will embrace.

This is because the consequences of coming to grips with the immensity of our fiscal situation would mean that they would have to forgo their consumption lifestyles and start to accept a shrinking piece of the pie.. Maybe they do not deserve that vacation home or BMW or Mc Mansion and will have to give them up and live within their means. To hell with that.... they say let's just continue partying and spending until they take my cards away. This is the Keysian trap that politicians and consumers love - that you can spend your way out of debt ..... an obsurdity...... but very appealing. Regardless of intelligence, we all get seduced by easy money. Out generation has only seen a constantly improving lifestyle and do not how to face a shrinking minimalist lifestyle.

The Fed is fueling this fire with easy money and low interest rates. This takes massive leverage and firepower to provide these low rates when 1 out of 3 loans are not being paid back. To do this, they are using 100 of trillions of dollars in deriviatives to keep interest rates low, 100 of trillions of deriviatives to keep the dollar strong and 10 of trillions of dollars in deriviatives to keep commodties down. This is really the biggest danger to our fiscal security. The derriviatives time bomb. The debt amassed would throw us into a major depression.... but when the deriviatives blow......... The entire social fabric of this country will be irreversibly be changed for decades to come with all of the chaotic social consequences that this may entail.

This will happen..... I do not know when..... I am always early in my predictions.... But it is already baked in the cake.

GOLD888888

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