Deflation Theme as a Cover?

Discussion in 'Economics' started by waggie945, Jul 7, 2003.

  1. For the Federal Reserve, much in the same way that Y2K and 1999 Computer Clock's were a cover for the Fed to massively ease, causing a huge IT Bubble, much in the same way that the Fed used the Long Term Capital debacle to massively ease once again.

    Now, is the Fed using the DEFLATION THEME as yet another cover to massively ease once again?

    What do you think?

  2. Of course!!

    Forget deflation! It's a fable, a fairy tail. It was never happening in the first place. It was a rouse to get the knownothings in the media and financial community to begin to "parrot" the Fed party-line.

    It worked.

    The Fed is printing money and injecting liquidity like there's no tomorrow. Where do you think this share rally is coming from?

    The problem is that this massive new credit creation will eventually be a MAJOR catastrophe as it only extends and expands the time when the piper must be paid.

    As a result the USD$ will be much much lower than it is now. Interest Rates will be much higher. Gold will be much higher. Shares will be lower. And the good 'ol USA will be in deep s**t as it will not be able to finance its basic commitments and any discretionary spending will be nonexistent.

    Write it in stone.

    Dr. Zhivodka
  3. Cesko


    You wish. I hear this crap practically all my life:D
  4. federal and national cash flow on one hand and the policies currently in vogue make up two forces that will yield a perfect Economic storm.

    We have now broken all deficit records ever set and taxation was screwed too by setting up a scenario to actually collect less taxes as the incentives take effect. The money needed to make it all work will shrink and shrink as time passes.

    By setting up an other low pressure schema with policy we got to spend on terror, spend on wars not even remotely having a possibility to fix something that was not there, lower interest to utterly screw the older populations and all savers of any age. If dividends had been given tax relief as corporate incentives, business would have had a kick in the pants but quite the opposite, the rich were given tax revief with no application probable for the wealth they keep in their personal places. Killed too was the growth of the stock and commodities markets through the steady erosion of capital from the markets and now having no alternatives to go to. Stiffling all world markets for our possible services and materials production. Killing the global incentives to do mutual development of all the UN nations who needed help to grow.

    This Presidency has made the "prefect storm" for all of us to ride out Deficits digging deep long term holes and policy screwups that will take years to erase. So so very unnecessary at any point along the way. What a crock.