| Subject: | Re: Deflation |
|---|---|
| Date: | Thu, 18 Mar 2010 09:52:51 -0700 |
| From: | Jas Jain |
Sword (former "Printing Money" inflationist): "Somehow, miraculously, my property tax bill was exactly the same this year as it was last year after 10 consecutive years of increases. This despite the school board crying for more (as always). In other news, the Fed will complete their more than a trillion dollar purchasing of toxic assets over the next month. Just in time for an epic uptick in mortgage resets. This is coupled with debt to GDP ratios around the world at near historic peaks. There is going to be hell to pay, and no more political power or ability to deal with it. It doesn't take a genius to figure out what is about to happen over the next 2 years. If you lose your shirt in the worst bear market since the great depression you will get what you deserve."
My property bill was lower last year than the year before (they reduced the assessed value, correctly based on the housing price deflation) without my doing anything. This despite the fact that local govts are struggling for revenue.
Reappointment of Bernanke proved one thing and one thing only—that Financial Nazis of America have a firm grip over the economy. Their power base, naturally, is the Federal Reserve System. They will not stop until America is destroyed. Do the radio talk show and cable TV hosts ever talk about the un-Constitutional power of the Federal Reserve and, especially, who control it? If they did the plug would be pulled on them. The lone voice has been Ron Paul. The Federal Reserve and the US govt have been fighting deflation for the past 27 years and they would fail in not too distant a future.
The change of party didn't change an iota as to who have power to manipulate the economy—the same gang of economists sometimes with different color hats. What sort of person believes that the economy can be manipulated for the better of the majority, especially, honest working people? Obama will deliver on his promise of Change—Change For the Worse. Did he ever promise Change for the Better? He is a liar, I mean a lawyer, remember?
Enjoying the benefits of deflation and betting on it,
Jas
Please read
More information:
- I Bond Rates
- US Treasury: Rate Quotes
- Expected Inflation - TIPS Spread
- Kirk's Two Investment Letters
- More about ECRI
- July 31, 2009: ECRI Predicts End of Home Price Downturn
- July 21, 2009: ECRI Predicts The End of the Recession is Imminent
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1 comment:
It is not deflation if prices fluctuate - it is simply the law of supply and demand. Anyhow this "fear of deflation" is largely nonsensical. Deflation does not keep people from spending – they always spend what's necessary. And money NOT "spent" is then saved which means it is credit to someone who invests it for capital goods etc. thus it is again being spent, only not for consumption. Money never lies completely idle to any extent whether there's inflation, deflation, stability or a solar eclipse. For deflation to seriously happen, not only the current extreme credit expansion by the central banks and states (through "quantitative easing", stimulus packages, monetising and then spending national debt etc.) but also the money that was released into the economy PRIOR to the collapse would have to be "mopped up" again. This is nowhere to be seen nor would it be technically possible (confiscation aside) so we will rather see inflation than deflation.
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