Jubilee Prosperity

In fact, deficit governments stay up nights figuring out how to cut costs like Medicare, Unemployment, Welfare and raise revenues with confiscatory fees and taxes.

The 2000 page final National Socialist Healthcare Bill is still unread by most of Congress and their voters. It reportedly included more imaginary savings, tax hikes and unfunded mandates likely to depress jobs and economy further.

http://nymag.com/daily/intel/2009/11/senate_bill_roundup.html

As Jay Leno said, The Government Post Office keeps raising rates and losing more money. Do we really want those people taking over our healthcare?

If/when we have inflation or hyperinflation, the largest markets, US Treasuries, would explode with higher interest rates and lower prices to compensate for inflation risk before that. In fact, Treasury yields came down from 20% in 1981 to 2.5% in December of last year.

The US is unlike Argentina, Vietnam and Zimbabwe by virtue of having debt derivative capital markets much larger than gold, silver, commodities, housing or the economy.

In other words, the power of defaulting debt derivatives dwarfs all other markets and is the City tail wagging the economic dog.

We expect deflation and lower prices except the cost of government to continue. One of these days, not to far from the bottom, even government costs may go down.

The President, whose primary backers included Wall Street, may agree with us in part.

Last 3 March 2009 he said it was a good time to buy the market.

Then he said we are out of money.

Now he says we may have a double dip decline.

Is this a great country or what?!

Regards*Rich

JubileeProsperity@gmail.com

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This entry was posted on Thursday, November 19th, 2009 at 7:46 pm and is filed under Capital Preservation. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.