just a comment on Roach's editorial on Reflation Efforts
we live in a complex economic world, made more complex by economists who do not clarify much of anything, but rather confuse matters tremendously
we are being taught incorrectly about the entire concept of inflation
we are being taught not at all about the dangers of debt
we are being taught incorrectly about the potential effects of extreeeeme monetary liquidity in treating problems owing to excessive monetary expansion over a 20-yr period
a quick thought came to me (while in the men's room)...
we saw a threat from terrorism to our security
so we created Homeland Security, a cabinet coordinating agency
so we funded the agency, throwing a lot of money at it
so we forced states to spend, but offered them little federal money
we see a price deflation threat now, which is confusing many
we already have the burokracy in place
so we fund the system, with monetary printing to aid liquidity
AS IN SECURITY FROM TERRORISM...
AS IN HEALTH & HUMAN SERVICES...
AS IN VETERAN AFFAIRS...
AS IN ENERGY REGULATION...
AS IN EDUCATION...
AS IN MANY OTHER NATIONAL NEEDS...
WE THROW MONEY AT IT
WHY IS EXTREEEME FED MONEY PRINTING ANY DIFFERENT FOR TREATING ECONOMIC PROBLEMS ???
we dont spend the time to carefully separate politics from the difficult analysis of what caused the problem, nor what might rectify the problem
Roach states clearly in post #20085 his doubt that traction will be gained from monetary response such as has been started
so far the only reactions have been:
- mortgage finance bubble
- real estate extended bubble
- TBond bubble
- commodity price rises
- energy price rises
- stock market rally
NOTHING ON FINAL DEMAND, CREATION OF JOBS, CAPEX SPENDING
or even the need for capex spending
and worsening debt levels, despite Greenspasm's lies concerning improved corporate balance sheets
doesnt anyone realize the mfg plants have been dispatched to Asia and Mexico ???
or that jobs are the 2nd biggest export behind debt ???
so far, only Europe's currency has adjusted versus the USDollar
and boy oh boy, has it adjusted !!!
but we have small export deficits with Europe
Germany is the major nation where we have EU trade gaps
nothing, absolutely nothing, versus Asian currencies has been corrected, because political bodies prevent the remedy
WE HAVE GARGANTUAN TRADE GAPS WITH ASIA, BUT SO FAR NO CURRENCY ADJUSTMENT HAS BEEN ALLOWED
GOVTS DO NOT WANT A REMEDY, THEY WANT TO THROW MONEY AT THE PROBLEM AND HOPE IT GOES AWAY, IS REFLATED AWAY
WHAT UTTER INSANITY AND NONSENSE BULLSHIT !!!
we are not a very intelligent world community when it comes to economics
we have subverted the entire thought process
the thought process is totally totally a slave to politics
it cannot recommend the 20% reduction in consumer spending
it cannot recommend the cutting off of consumer debt
it cannot recommend a 50-100% tariff on Chinese imports
it cannot recommend expediting 20-30 million personal bankruptcies
it cannot recommend foreclosure of Ford Motor and General Motors, with Toyota and Honda picking up the broken pieces
it cannot recommend a 40% JYen currency adjustment
it cannot recommend a 300% Chinese yuan currency adjustment
it cannot recommend forcing state contracts to be met by domestic companies
it cannot recommend that corporations stop sending their operations to lower cost Asian and Indian locations
it cannot recommend default writedowns of 25% of foreign-held TBonds
instead, we recommend more water from the endless spigot, more funny green paper with which to cover our indebted walls, more juice for the addict
we are in a bad corner
this stock rally has not upset me at all
it amuses me to high heaven
what are they gonna do when they realize their castle in the sky goes nowhere, has no foundation, is built upon fluffy expectations and absurd economic assumptions ???
jobs continue to be lost
and now the Dept Labor has a new method of calcuating job counts
I will give you 10:1 odds it is based on deception, inaccuracy, and politically driven motives
all this new monetary printing will end up chasing the only sectors not bound by debt
COMMODITIES AND GOLD AND ENERGY
will stocks continue to rise because of sidelined money going to work?
I doubt it, not much longer
this is like watching a herd of moronic sheep gallop to the cliff's edge
we gold players await at the bottom on the cliff's chasm
with fires and barbeques already started
BRING IT ON !!!
I am so far beyong feeling sorry for the illiterate innumerata
I just want to eat them, and toss their bones in a heap
let them feed that portfolio in my belly
I can much more properly allocate a few $million in order to build something real
something besides deeper debt, unnecessary capacity, and speculation on goomba pursuits
I am almost as disgusted by the desperate masses chasing the greater fool, as I am the economic and banking leaders
bring me my dinner
/ jim |
