Hyperinflation Coming?
March 24th, 2006 | by Paul Merda |Most of our readers will agree that the Economic Numbers Dear Leader touts relentlessly are not representing what is actually happening. But what if the outlook is so bleak that if we actually knew the truth the Economy would crash hard instead of slowly grinding to a halt?
How can we as a Nation continue the massive Trade Imbalance that we have? How can our Nation afford to continuously spend much more than we are bringing in? We all know what would happen at home if we tried that, hell I even tried it for awhile with an ex-wife of mine and 10 years later I am finally out of that hole. Few will even try to deny that the Unemployment figures are much higher; the numbers do NOT take into account those not working that can not collect any more Unemployment Insurance which includes people on Welfare who have never been considered unemployed, leaches maybe, but unemployed no. Compared to the Euro the Dollar has barely moved, but compared to Gold, the Dollar is worth only half of what it was in 2000.
I certainly don’t have answers, hell I am a Chemist not an Economist. But I can not help but think that we are paving a road to economic hell, and its being paved by the Party of Small Government, Low-taxes & Balanced Budgets….
2 Responses to “Hyperinflation Coming?”
By Jet on Mar 24, 2006 | Reply
The robustness of our economy is heavily weighted with the housing boom rather than a broader based set of underpinings. This is bad. Via Reuters:
Sales of new U.S. homes plunged 10.5 percent in February, the biggest drop in nearly nine years, while prices fell and the number of homes on the market hit a record high, the government said on Friday in a report signaling significant slowing in the housing market.
The pace of new single-family home sales slowed to a 1.080 million unit annual rate in February from January’s downwardly revised 1.207 million unit rate, the Commerce Department said.
10.5% is huge. We are headed for a rough patch.
By ken grandlund on Mar 24, 2006 | Reply
If we want to talk about disasters that will really impact the greatest number of people, the enemy is not terrorists, but our own terrible economic policies. Our massive debt and huge trade imbalance, coupled with ever higher costs, will eventually put this country at the mercy of those who hold the notes for our debt. In this continued economic reality, your odds are likely much greater of suffering a financial meltdown than of being killed by a terrorist attack.
Just as with so many things, the Bush administration likes to live in fairy tales where the economy is concerned.
As I am also not an economist, I can only llok to how I manage my own funds and extrapolate that onto a larger scale- spend what you must, be prudently; save what you can, but responsibly; and above all, have someone honest holding the purse.