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Blowback, The Law of Unintended Consequences: AKA The High Cost of Big Government
Somehow, PPIP, TARP and TELF mortgage bailout stim government schemes never got off the ground despite great expectations and promises by politicians.
Various alphabet acronym government agencies are still in terminal financial distress, albeit temporarily out of the limelight after buoyed up by Fed debtors and Treasury Taxpayers against their will. Father, forgive them their debts, as they know not what they do.
The widespread fear hunch is the only thing that might temporarily reactivate zombie agencies and banks to do more damage is deliberate hyperinflation repudiating their overwhelming debts.
Talk about delusion and suffering.
In actuality, we had 86% hyperinflation from 2001. Now the COLA Cost of Living Adjustments are negative and T Bill rates are zero, saving Big Bad Government a few bucks. Inflation is not coming back anytime soon until all the bad debts and investments are wrung out of the system.
With ARM Adjustable Rate Mortgages resetting and longer interest rates rising, that lies still in the future.
BRIC Brazil, Russia, India and China surplus nations, BIS, Fed, IMF and World Banks and Treasuries are not capable of overcoming Titanic debt derivative defaults to engineer inflation to further destroy careful consumers, savers and trade. As the old sayings go, they cannot push on a bad credit string, and they cannot make a dead horse drink.
The bloom is off the big bank rose and the jig is up.
Big bankers are today’s used car cash clunker salesmen.
Politicians are their gofers at least until November 2010.
Hyperinflation would not only destroy what is left of the economy after an 86% devaluation of the dollar relative to gold since 2001. Inflation is now a dead non-starter.
Too many people don’t know their financial history. They rely on mistaken telegenic financial evangelist Nobel Laureate headlines instead.
Like Rudra, big government does not create, but destroys.
The FDR Bank Holiday, gold confiscation and 69% devaluation of the dollar had an essentially similar temporary inflation effect as the 6.9% November 2009 Energy PPI blip, producing 7% inflation less than one year before returning to depression with higher unemployment and lower work.
