Listening to all the 40# brains argue "inflation" or "deflation" it strikes a few of us that we are having the WRONG argument.
No, it won't even be "stagflation."
All of this wasted breath is like debating financial crop circles. Entertaining at times, but pointless and useless...unless the purpose of the exercise is to serve as a distraction from the REAL problem.
- Now WHO would want that comrades? Who benefits?
You never hear depreciation from the teleprompter readers, do you?
Using the terms inflation and deflation implies that prices are going down or up, and that the 'problem' is with the goods or the producers of the goods which shifts the attention of the naive and gullible away from the fact that the problem is the currency. [read: FED]
It is NOT that prices are going UP, but that the value...the purchasing power of the currency, the Dollar...is going DOWN.
- It takes more-and-more Dollars to buy the same things.
DEFLATION will not be the problem, it is only a "ruse" (a strawman argument) to scare us into allowing bailouts, reckless spending, and the massive creation of funny money.
INFLATION (increasing prices) will be a symptom of the real problem, which is DEPRECIATION (a decrease in purchasing power).
The US debt risk is now so high, the debts can never be paid back (and there are no 'intentions' or 'plans' to pay it back, something our Kommissars, Politburo, and Pravda won't tell us) leaving two options:
DEFAULT or DEPRECIATE
Paying back debt with more Dollars that are worth less has to be an appealing concept to somebody. It kicks the can down the road and delays the inevitable, something our political uber-class does with same consistency and regularity as it is useless and worthless.
It's a long list, but think: Russia, Argentina, Zimbabwe...and we're next.
Thursday, 12 August 2010
Having the WRONG argument...........from Rico
From Theo Spark at 06:47
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