Voltaire is typical among the CLUELESS investors
he overlooks two big key huge issues
1. as household debt rises, then payments to service that debt rises, and reduces the amount that can be spent on goods & services... same goes for corporations... in fact, combined US Household installment plus mortgage debt now is 105% of income, and rising each and every year... expect over time for spending to be reduced... and if it gets out of control, then bankruptcy follows
2. as we add more and more liquidity to the system, we devalue the USdollar via oversupply... this has seriously weakened our economy already... now, as the USdollar has begun its decline, I expect its decline to continue... as it does, WE IMPORT INFLATION from all the foreign-made products and components... and worse, WE INVITE FOREIGNERS TO SELL USTBONDS, WHICH RAISES OUR INTEREST RATES
Voltaire is clueless mainly because he sees no eventual harm in our debt-ridden trend
he sees no likelihood of consumers eventually cutting back on spending, from overwhelming debts or insecure jobs
he sees no prospect for foreigners selling our financial assets
he expects the world to continue to support our economy,
EVEN AS THEY ARE RAPIDLY LOSING RESPECT FOR OUR SYSTEM AND OUR LEADERS
we cannot continue to print and spend dollars, filling the world with such paper
the laws of supply & demand catch up to such abuse
Laws of Economics are immutable and cannot be repealed by spend-crazy Congress
Laws of Economics are BRUTALLY HARSH, AND UNFORGIVING
coming within a few months: rising interest rates, against the wishes of the Fed, and despite their attempts to control the situation !!!
slowly rising prices, from imports, especially if the USdollar continues its decline... as about all the top experts expect, given our growing trade gap and growing federal deficits, not to mention our steadfast trade barrier policy (which is really really counter-productive)
/ jim
p.s. methinks the Volster is a TRIPLE DIP in economic measures |
