False Diagnosis of Deflation
Jim Willie CB
321gold.com
The simple answer is that the overall USEconomy, complete with its cancerous Financial System, is enduring both inflation and deflation simultaneously.
One can actually argue that the entire USEconomy is a gigantic Ponzi Scheme, fueled by USTreasurys, now come unglued. In fact, with the Weimar-like explosion of monetary inflation has come more confusion, even within its proper definition. The private sector, often called Main Street, where people live and work, businesses operate, commerce directed, is being drained of money supply to some extent. Credit flow is being restricted, by order. Despite all the hoopla of the USFed flooding the system with money, the august central bank is draining the private sector in order to subsidize Wall Street in a final explosion of fraud, before the New Administration. Git while the gittin' is good!
Expect very little in the way of change, and never confuse transition with change. With an insider Geithner at Treasury Secy, and with Bernanke to continue as USFed Chairman, expect little change. Also, with Gates continuing as Defense Secy, an unprecedented decision, expect only cosmetic change to the war effort. At least the shady but revered Goldman Sachs is not in charge at Treasury anymore, an event whose importance has yet to be determined.
Moral hazard has permeated all chambers once again, a totally embraced policy, the inexorable step that Bernanke promised would never happen. Refer to the near 0% official rate. The US is so so so lost on a path into darkness. Why? Because the very cause of bubbles and their bust is once again official policy for remedy. What lunacy amidst desperation!!! Jack Daniels is served for free once again, to supply the hopeless alcoholic. Few seem to realize that the climax of a fiat system is the proliferation of crime syndicates engaged in counterfeit and fraud, whose assured systemic ruin assures myriad seeds planted. The new shoots lean toward the sunlight but coupled with violent change. Those who push for change will be labeled enemies of the state. We are witnessing the failure of the nation. |
