I read this statement from your post slowly & really, really digested it:
"This is one of the big reasons I'm sure the government will favor inflation and as soon as possible. It makes the collapse of the economy easier to take if the vehicle in which it's valued is losing value as fast as the economy is going down. "
One of the MOST important admissions I have EVER heard from a politician, much less a President, was this statement from Obama in his Feb 9th Press Conference... taken from the transcript... and NO ONE seems to be talking about it..
From his answer to a question from Chuck Todd:
"Answer to: Chuck Todd
Now, you are making a legitimate point, Chuck, about the fact that our savings rate has declined and this economy has been driven by consumer spending for a very long time -- and that's not going to be sustainable. You know, if all we're doing is spending and we're not making things, then over time other countries are going to get tired of lending us money and eventually the party is going to be over. Well, in fact, the party now is over. "
This is huge.... HUGE.
I read this two ways: That the great experiment to put full faith & energy into a consumption society HAS failed...
and...
He's telling us... Americans who currently need 4 billion a day in borrwoings... that no one wants to lend us money... "tired of lending us money and eventually the party is going to be over. Well, in fact, the party now is over. "
Would he, should he be stating fact, not want some sort of inflation immediately?? What do you think of this answer of his?
Eric? Anyone?
AI
