Jubilee Prosperity

The ultimate scotoma irony is that people who don’t trust big government trust it to reinflate.

The real state of the economy is deflation, caused by overcapacity and excess debt defaults pricking asset bubbles driven by Fed funny money.

The full faith and credit of the US Government is at stake. Do Bernanke, Geithner, Obama, Paulson, Pelosi, Reid, Roberts and Summers really want to go down as the folks who broke the bank and killed the golden goose?

Can they really stop the inevitable or just get in front of it and claim credit for bursting the bubble?

We have Treasury Debt, mortgage delinquencies and unemployment hitting record highs with bankruptcies, interest rates and price earnings ratios growing, while dividends, income, jobs, rents and savings disappear.

How is that inflation?

Some people think they can take a Krugerrand coin or gold certificate to the corner grocery and get change for a pack of cigarettes.

Hyperinflations occur well AFTER depression and war bottoms like World War I and the Swine Flu Epidemic, not before.

History repeats Jubilee generations.

The stock market bottom was in 1932. Gold was confiscated in 1933 and the dollar devalued in 1934. Hoover and FDR had alphabetic government programs that raised taxes to bail out economic losers. Today it’s similar, with hidden TARP, Healthcare and Cap Trade Taxes.

In the Thirties Keynesians thought a cheap dollar was good for business, not caring that it destroyed the middle class and raised costs. In the Naughties the neo Keynesians are at it again.

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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.