Deficits Cure Short Term Ills and Cause Horrifying Long Term Problems
I hear the G20 has agreed to dig into their savings account to keep the world economies afloat, albeit without any supports for the US dollar. American stocks shot up with the wonderful news, but is it really wonderful?
China may have a 8% increase in their GDP, but IMO its all smoke and stimulus mirrors there too. They dig into their savings account until its dried up. China is urging America to control its deficits….LOL….yet, if we did, who’ll buy the Chinese stuff???? The Chinese themselves? LOL, they can barely feed themselves.
Who’ll buy the $29K Mercedes subcompacts when they sky-rocket to $60K with dollar devaluation? The Europeans? LOL, they’ll be lucky to still be making Mercedes, if we stop buying them.
There were many that predicted inflation with lower dollar rates and guess what, yes, oil is now $80/bbl [and supplies are snow-balling] ….but a little birdy is telling me, remember a stronger dollar a year ago, with $30/bbl oil…..yeah, gas was still $2 something a gallon like today. So what happenned, why didn’t the inflation monster get us by now? Even when oil was $150/bbl, we didn’t see $10/gal gas, inflation adjusted from $30/bbl $2/gal gas…..what the Hades is stopping the inflation monster?
Wages, lower wages my friends. The elite don’t want to talk about it, no, they say household incomes rise every year [yeah right, and so does the number living and working in each house].
I’ll repeat myself again….RE will never rebound in price unless per capita wages go up and that just ain’t gonna happen my friend.
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