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Strategies & Market Trends : US Inflation and What To Do About It

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To: John Vosilla who wrote (387)3/25/2014 10:20:40 AM
From: ggersh  Read Replies (1) of 1504
 
Yep....and the solutions are still available, although steroids
might be required.....

Government's efforts have not helped, they have destroyed the four years we had before "zero hour" was reached. Bernanke's interference in the mortgage market didn't "help" that market, he effectively entirely replaced the private market. The Government's "interference" in the private markets by borrowing and spending $3 trillion over the last two years - more than 9% of GDP annualized - is an attempt to "paper over" the insolvency of private actors in the markets - both borrowers and creditors.

These acts of interference did lead to a huge stock market rally, but just as with all forms of cooking the books they are false dawns and false hopes. They present a picture of "solvency" that does not actually exist. They present a picture of private demand in the economy that does not actually exist.
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