There's again concern among some commentators (e.g. Gerald Celente) America is heading towards a hyperinflationary period.
Heard that before. His name is Howard Ruff.
Say it long enough, you're bound to be right. And when you're not, move the goal post. Or blame a secretive, sinister, alien right-wing cabal. Or anything you care to scapegoat to deflect attention away from yourself.
Paul Ehrlich is betting on it.
One of my buddies still teases me about how every year on the first day of school for five years I'd proclaim, "This is the year for the Expos!" I came close. In 1994. But by then we were long out of high school.
Speaking of (over) praise (in the link). Plenty of people get awards for bull shit. Ehrlich is one. Michael Moore is another (John Steinbeck award for example). Which only goes to prove, awards are useless (and possibly corrupt in some cases) and the people giving them out are mindnumbingly clueless.
Well, if we're talking about honors that weren't deserved, I would have to go with Obama's Nobel Peace Prize and Sarah Palin's high school diploma.
ReplyDeleteRegarding the inflation, it's happening and it's planned, and it's... sadly... good for America. At least, given our situation.
Let me explain: We have trillions of dollars in loans. Some of it is to citizens in the form of bonds, even more of it is from foreign loans. Because these loans are based on fixed dollar amounts, inflation favors the borrower and is also controlled solely by the borrower.
Imagine you loan me a billion dollars. If my income is only a few million a year, I'll never be able to pay it off, but if inflation occurrs and my income "skyrockets" to hundreds of millions, I can pay off the loan in a few years. Sure, my income wouldn't only be higher in dollars, not in actual buying power, but the loan doesn't care about that because it does not adjust for inflation.
Now pretend I can print the money... yeah... the bills would get paid pretty quickly, but the dollar is going to experience a huge devaluation. Get your wheelbarrow ready, because you'll need it to carry the money necessary to buy groceries.
Don't get me going on Obama's peace prize. I'll never take Nobel seriously again.
ReplyDeleteAs for Palin's high school diploma - the missing link?
Your inflation scenario. Possible. Even plausible.
And then the butterfly effect kicks in.
Well, someone has to pay for services and expanding spending policies, no?
But our spending has not expanded, it's contracted. The Bush budgets were all larger, especially in his 2nd, 3rd, 4th, and 5th years (the first year was pre-9/11, and after by his 6th year in office, Democrats were controlling the house and Senate). The killer is the interest on the loans taken out by Reagan, both Bushes, and Clinton (though Clinton balanced the budget in 2000).
ReplyDeleteFrankly, I think it's a great idea if the US also imposes heavy progressive taxes. Wealth will need to be redistributed in order to prevent widespread poverty, because the fortunes amassed by just a few people will drive the remainder of the population into poverty if inflation occurrs. If the wealth is spread out, the middle class will re-emerge and restore normalcy (or some semblance of it). The worst hit will be the poor... but what else is new? Oh, and the holders of our loans, because they're being repaid with devalued currency.