Great column. On spot, and on time. Too bad TPTB have their heads so far up their asses they can neither see, nor hear. Or if they can see and hear, then they are multiples of malicious.
November 9, 2015 at 9:03 AM
Anonymous said...
Riding the tiger is not the tricky part.
Getting off the tiger and surviving is the tricky part.
From the founding the USA economy followed a pattern. Wartime deficit spending and the resultant inflation followed by peacetime surpluses being used to pay off the war debt and the resulting deflation. That ended following WWII. The US military was in the process of demobilizing after WWII but had to reverse course to fight in Korea. Then it was the Cold War. Essentially the USA has been on a wartime economic footing since late 1941. I believe I read an analysis that the US treasure had two real surplus years in that whole period, once under Reagan and once under Clinton. No surpluses, no paying down the debt, no deflation.
Then there's the other shoe. The Fed feels that deflation is a bad thing. Essentially they want 2% inflation into the forseeable future. Why might that be? I suspect because all of their tricks are for fine tuning an economy in an inflationary environment. They believe, probably correctly, that they would have no control over deflation. If they have no control, they have no reason to exist.
""Time for the Crash.""
2 Comments -
Great column. On spot, and on time. Too bad TPTB have their heads so far up their asses they can neither see, nor hear. Or if they can see and hear, then they are multiples of malicious.
November 9, 2015 at 9:03 AM
Riding the tiger is not the tricky part.
Getting off the tiger and surviving is the tricky part.
From the founding the USA economy followed a pattern. Wartime deficit spending and the resultant inflation followed by peacetime surpluses being used to pay off the war debt and the resulting deflation. That ended following WWII. The US military was in the process of demobilizing after WWII but had to reverse course to fight in Korea. Then it was the Cold War. Essentially the USA has been on a wartime economic footing since late 1941. I believe I read an analysis that the US treasure had two real surplus years in that whole period, once under Reagan and once under Clinton. No surpluses, no paying down the debt, no deflation.
Then there's the other shoe. The Fed feels that deflation is a bad thing. Essentially they want 2% inflation into the forseeable future. Why might that be? I suspect because all of their tricks are for fine tuning an economy in an inflationary environment. They believe, probably correctly, that they would have no control over deflation. If they have no control, they have no reason to exist.
November 9, 2015 at 1:37 PM