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| lets get one thing straight here guys, There is absolutely NO inflation. The FED is trying desperately to manufacture this as such through liquifying the markets and banks through production of fiat currency.
When you have an economy fast tracking in contraction through shrinking labor markets this leads to a depression cycle that nobody fully expects nor understands.
Shrinking labor markets is a manifestation of deleveraging of insolvent banks that are not allowed to mark to market toxic waste that is currently on there balance sheets.This scenario ripples out through ever fiber of the economy as consumers reign in debt and become savers that kills any expectation of any rebound in GDP. People lose faith in governments that bail out corrupt banks which are intertwined in self enrichment thus people lose faith in a currency and flee for hard tangibles such as gold and silver because they cannot confiscate or devalue those entities that will always remain valuable.
The only magic elixir available to rectify the egregious wrong is to expose every bank to there toxic waste and let the dominoes fall and wean out the toxic holders of debt and throw them out to the dogs, make them mark to market that crap.Citigroup is an example of what should be dissolved.
Let the housing market find its bottom all on its own, then the excesses will be purged. Until then, the currency will continue to devalue along with purchasing power of the people which is highly deflationary. | |
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What's a dollar?
