- Registration time
- Last login
- Online time
- 1069 Hour
- Reading permission
Recession Is OK
What is much more dangerous is that Bernanke is trying to stave off the inevitable, by massively reflating, ala Greenspan. In the last 6 monhts the Feds have already "dumped" (loans to banks with basically ANY collateral and thus no collateral), a TRILLION dollars of liquidity already. He keeps it up, this can turn into a massive, 10 year long DEPRESSION. While decoupling is going on, it is still not complete. A decade long American depression WILL affect the rest of the world, and there is not going to be enough foreign borrowing to be able to fill that bottomless pit. But of course nobody would listen, and the Fed is likely to cut Fed funds rate by 0.5% to 1% in the next 60 days. More dollars, and quicker slide of the greenback.|
There are dreamers that pitch Ron Paul's 10%. But if Ron Paul really wins, he vows to go back to the gold standard and cut Fed spending to the bone (abolish the Dept. of Education, etc.). While commendable as a concept, it will ensure a multiple year depression. This addiction to credit is not something you can cure cold turkey.
Another example of how the stupid decisions of the hegemon affects not only its own people. Bush's decision to push corn as a source of alcohol for cars means that world food prices will go up significantly, and will mean more starvation around the globe. Great contribution to world peace, not.
[ Last edited by tongluren at 2008-1-12 10:03 AM ]