A Hyper-Inflationary Great Depression Is Coming is a thoroughly depressing article.
But the problem is I DON'T see why the "economy" is improving. There doesn't seem to be a reason. Is the US consumer just buying more stuff because it was tired of NOT buying stuff?
Maybe he's got a point.
But the problem is I DON'T see why the "economy" is improving. There doesn't seem to be a reason. Is the US consumer just buying more stuff because it was tired of NOT buying stuff?
Maybe he's got a point.
Well, as I read and think about econ-related matters for my job, I have to share that I am pretty pessimistic. In essence, I feel that the world/US is on a poverty spiral as our collective debts have become too high and to get out from them will take either less consumption or higher inflation (or both). Traditionally (Great Depression) in the US this is from lower consumption (i.e., lower GDP) which would be deflationary and very bad for debtholders. Debtholders (like the US govt) would like to see inflation. However, a world with higher taxes tends not to be inflationary. Thus the conundrum. Each situation benefits different assets. Will we muddle through? Yes. Will we have a higher standard of living in 10 years? No. Just my opinion and I hope that I'm wrong.
ReplyDeleteThe more you know, the more scared you become.
ReplyDeleteI just don't see a good way to break the cycle without some sort of austerity plan (volunteered or forced).
But no one is going to agree to that. (See Greek riots)
And this this not even taking account of the still-ticking time-bombs as adjustable rate mortgages.
Many shoes left to drop...
Too true, mi amigo, too true.
ReplyDeleteThink I'll bury my head in video games.