Yes, they can print stocks to the moon, but there will be
consequences. The clownbuck will break the lows and
the fall will accelerate. -g-
Overall, I think "they", the global CBs and the rulers,
are acting so far as a coherent bundle, discussing and forming
policies together, which is a positive, given that the derivative
Ponzi is global. However, US played "dump countries" card
to save the dollar last year, which, perhaps, was not so
justified with some emerging and dollar-rich economies (including
Russia), which, in turn, might alienate these countries from
the West and induce de-dollarization, a breakdown of Bretton-
Woods II. I think that process is already happening. The Shock
therapy prescribed by the IMF to emerging countries that
got themselves into Keynesian screwup mess was very hard
on the people. The same shock therapy pill that US has
repeatedly refused to take and is now struggling and
printing to avoid.
I think we avoided it and messed with Mother Nature for
so long, this changed our entire economy over the years.
Now the crisis will be prolonged and severe - and yes, since
we now produce so little, it will involve a major goods
inflation and possible asset deflation. The latter depends
entirely on the speed of goods inflation, thou, since
money is just paper. Sure, assets will deflate in gold. -g- |
