Excellent commentary. Your real name isn't Howard Ruff is it?
I have to agree with most of your points. I did some research recently on money growth, and was amazed at the growth over the last 3-4 years.
The FED has been printing money like a madman, yet the only signs of inflation we have are in stocks and real estate.
How long until inflation reaches consumer goods? This delicate balance can only be maintained if the cheap imported goods and commodities continue to be cheap, and the easy money keeps flowing into equities and real estate. Otherwise, like you said, Major recession.
The biggest stock bubble in history, meanwhile continues to grow. When that bubble is finally burst, will inflation take hold? Or is it already here (in assets)? Bursting the bubble makes that money disappear (unless it's leveraged). Is that the plan (the money disappears, and voila, no inflation)?
FWIW- Check out my story, "the Road to Retirement City", you may find it amusing:
geocities.com
Regards,
TW |
