<FED and the white house sacred shitless>
well well, I doubt there is anything sacred about either
just jaggin ya
SCARED SHITLESS, but I wish you would not swear
excellent points, MishMan
Russ makes a consistent solid argument for why prices should rise
the only problem is that they are only rising for speculative goods
e.g. stocks, bonds, real estate
wherever Asian production output is involved, FAHGETTABOUDIT
take away FannyMae financing (with Asian subsidies) and the entire artificial housing market falters badly
since entering this excellent fray, I have thought considerably about how monetary inflation DOES produce final product price inflation
key requirements are limited supply and adequate income
we are missing both
I see no imminent prospect for either to happen
cotton prices are rising, but Bangladesh still provides all the nice rugged cotton rough & ready shirts I need
and the price is low
heck, I peruse the malls every weekend
I like to scout for highschool aged girls to check them
(it is remarkable to watch them detect their growing sexual power)
but I also like to observe the 50% off sales for clothing
last month I took advantage of a Best Buy sale
a camcorder was on sale, reduced from $480 to $420
not only that, but Best Buy gave 0% for 6 months
I doubt merchandise would push through without such attractive financing
I can see directly how Best Buy profits are in decline
I have mentioned since summer that
China is the bootheel on American product pricing
I offer this image in order to describe Greenspasm's disastrous reflation policy
imagine GMan pumping up a big bicycle tire
but the tire is contained within a tight collar
keep pumping keep pumping
10-15 years ago, the tire would not have a collar
now with the collar, expansion (of price) is impeded
the tire bursts, and explodes
the commerce equivalent is "going out of business"
MishMan, I think we will see more and more businesses exit
I have also harped on another parallel theme:
GRADUAL US CORPORATE LIQUIDATION
cutting costs, cutting strongest employees, reducing plant, these are signs of liquidation
we prefer to label it as "cost cuts, belt tightening, trimming the fat"
but it has been more like liquidation
ask the 500,000 UAW workers who will lose jobs
their car assembly plants are moving to Thailand, Philippines, and Brazil
if that is not liquidation, then I dont know what it
stage #1 -- liquidation amidst chronic low prices
stage #2 -- shortages of supply, and higher prices
we cannot get to stage #2 without first fully experiencing the pain of stage #1
REFLATION is a disaster
it is causing lost profit margins and reduced household budgets
China and India are now the mfg and service bootheels
Clinton's Global Village
Technology's New Economy
Greenspasm's Reflation Initiative
Cost Cutting Directives
add it up === ECONOMIC DISMANTLEMENT
WE ARE FAST ENTERING THE LIQUIDITY TRAP
CHINA'S AND INDIA'S CONTINUED PRESENCE GAURANTEE WE RELUCTANTLY ENTER, STEP BY STEP, INEXORABLY
the moronic Greenspasm will next encourage a new REFINANCE round for housing equity extractions
if he succeeds, we take a giant step into the Liquidity Trap
this man is a nightmare economist, hellbent on destruction
/ jim |
