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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: el_gaviero who wrote (36145)7/16/2005 2:42:18 PM
From: Haim R. Branisteanu  Read Replies (1) of 110194
 
Would agree with you concept and I would like to note that the process already started under the Clinton administration and possibly orchestrated by Rubin. The political establishment chose inflation and low employment rate - just to keep the masses hungry and be busy searching for a decent job or get completely frustrated depressed and disinterested in the "State of the Union".

They did so by changing the way the government statistics are released if underreporting the real cost of living via the CPI and unemployment numbers or overstating the GDP via hedonics or "seasonally adjustments" to avoid currency and debt shocks or a run on the finacial institutions

Inflation won already if it is reflected in the prices of financial assets (stocks and bonds)or RE or services which are "of superior quality" regardless that the actual real life quality is down substantially.

Democratic governments can easily deal with inflation but have no cure for deflation therefore over 10 years ago the US chose the inflationary path as a way to keep the masses satisfied in implementing a classic Leninist / Communist principle of “spiting in ones face and claim is raining” or blaming outside factors for the un-explicable.

Best proof can be found in the confusing speeches of AG which few understand what he says in most of his public testimonies before Congress or public bodies, and on the other hand claiming of transparency at the FED

That is also why the US must keep military supremacy to survive, never mind that this military supremacy is classic inflationary
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