new Jackass article on 321GOLD on USA and Liquidity Trap
here are the leading lines without the paragraphs
only 8 pages, my new format
/ jim
321gold.com
"Japan, Argentina, Weimar, or Muddle?"
Experts and other purported authorities have made frequent comparisons concerning the US Economy versus Japan. The consensus is that we will not travel the same agonizing path marred by contraction and slow motion destruction. We in the USA have far more similarities than we want to admit with the fading Asian powerhouse. However, critically dangerous differences will prevent the muddle process from occurring smoothly in our economy. We actually compare poorly in differences listed in this article. No, the USA is not as bad as Japan. WE ARE MUCH MORE DANGEROUSLY WORSE. Apply strong Weimar tools within a stubborn Japan quagmire, when addicted to foreign capital, and you risk shock-ridden Argentine outcomes, not a sloppy Muddle.
For over two years American business leaders, financial leaders, brokerage analysts, media pundits, and investors have denied that the United States is gradually entering a Liquidity Trap bearing strong resemblance to the one that has ensnared Japan's economy since 1990.
Neither Japan nor the USA might stumble in the Land of Muddle much longer.
As our government and financial technicians seek to prevent a painful recession (which would surely feed upon itself), we are implementing much the same levers as the Weimar Republic in the 1920's.
In their next panic, the Greenspan-led hacks running our Fed will plant the seeds of hyper-inflation, whose germination will be dictated by China.
"Liquidity" is nothing but a deceptive euphemism for more "Credit."
Disturbing parallels are slowly emerging in the geopolitical and financial fronts between the United States and Europe, with Iraq the new Weimar Republic, and the USDollar the new ReichMark.
The Federal Reserve is notorious for overshooting, and owns a track record to prove it.
The US Economy may soon be severely tested by a series of shocks.
The prescription for an Argentine implosion shock is a combination of debt failures, weak export competitiveness, and sudden departure of foreign capital.
Differences between USA and Japan are very unfavorable, relating to currency valuation, bankruptcy ease, saving propensity, foreigner debt ownership, financial engineering, monetization techniques, basic integrity, and intervention willingness :
a) unlike Japan, US Economy cannot tolerate a declining USDollar
b) unlike Japan, US Economy permits bankruptcies as a regular course of business
c) unlike Japan, US Economy depends upon consumption & spending
d) unlike Japan, much US debt is owned by foreigners, with a trade gap widening
e) unlike Japan, US Structured Finance has created a megalith monster
f) unlike Japan, US Federal Reserve is a monetization machine on steroids
g) unlike Japan, US institutions harbor widespread corruption
h) unlike Japan, US maintains a pervasive interventionist attitude |
