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Central Missouri | My above comment was tongue in cheek of course but wanted to get people thinking. Those mainstay staples that people use to survive mainly food and fuel have gone up alot in the last 12 months. We are sitting on 10% unemployment and it took 3 trillion in govt deficit spending over the last 2 years to keep it that low. At the same time for those employed wages are shrinking so if you are a consumer with a job on average your wage is shrinking and your cost of living is increasing. That is not a good recipe for a strong or sustained recovery.
It is also not a good recipe for increased income into the govt coffers. So here is what I see occurring:
1. deficit spending will continue thus the need to go long printing press coolers
2. the govt at all levels will seek to increase taxes
3. Obama ha recently suggested freezing spending for 3 years but that excludes defence, entitlements, homeland security and several other things; that only leaves 20% of the fed budget to freeze. Man do they live in fairy land
4. As china and Indias economies chug along they will need massive amounts of commodities.
5. is it possble that the govt will take over private pensions; use the money out of them and replace it with treasury notes,bonds. Never say never; alot of public and private pension plans are severely underfunded. Or maybe they will inflate us out of this which is just another way of stealing the peoples wealth by stealing the buying power of their earnings and savings.
he govt has 2 ways out, 1. tax which I think the people will rally against 2. inflate by printing, and QE which most people won't be protected against; or a combination of both which is what I think will occur | |
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DEJA VU - all over again
