SEE HERE Inflation is basically the result of devaluing money by making too much of it when it doesn't really have intrinsic worth. The current administration is hell-bent on destroying the economic system for reasons only they can explain, but seem likely to be intentional. When smart people do extremely dumb things it is probably for hidden reasons. In any case the result of the current actions will be the significant devaluation of the money that you hold and not just your cash but in many cases other holdings that are not secured by things of fundamentally real value. I don't know why they are doing it. You would have to ask them. But it's clear enough that the bottom will drop out once the tipping point is reached. The situation currently is that we are the biggest of the culprits and we will likely stand the longest, but when the crash comes it is likely to be long and deep because we have not been doing much of anything to be able to turn it around.
I realize that I end up sounding like a broken record on all of this. I'm been singing this song or variations on the theme for probably a year at least if not longer. But it's hard to see what has been done or is planned to be done that will fix anything. All I see is dumbness as far as the eye can see. It can't fly forever with the engine off, the economy that is.
Wednesday, November 23, 2011
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