mish, As you know, I very much disagree with your conclusion. By rates going up, I mean long term rates, and think that's a golden lock. Yes, we are importing deflation in everything that is trivial, such as cell phones, tvs, plastic dog poop, etc, as it is mfd. in foreign countries. But in everything that is vital to our existence, such as health care, education, care of children and the elderly, energy, clean water, a safe food supply, clean air, etc., prices are soaring and many things are not being done because of soaring prices. Our infrastructure is in a shambles because we can't afford to fix it. Last year's east coast blackout will repeat itself many times in the future, as will the rolling blackouts in California.
Our country is drenched in debt. There are three ways to get the debt paid off: grow out of it (the way we all prefer, but it ain't gonna happen), repudiate it (bankruptcies are huge now and will continue to grow. Look for more govt. and quasi-govt. agencies to take the pipe), or inflation that beggars lenders. The last two are the only real alternatives, and higher rates will accompany the latter, if not the second. They would also accompany the first, if it showed up. |
