And, if that’s not enough to cheer you up – “I’d say we are in the eye of the deflationary storm.”Enjoy!
22 Replies to ““Jaw Droppingly Bad””
DEflationary? I wish, given all the money the governments are pumping out.
Socialism . . . spending other people’s money until there isn’t any left.
Then “Let the Borrowing Begin”
Obama’s record deficit’s are leading America into voluntary economic slavery with China as their new Massa.
The irony of America’s first black president being responsible for the second epoch of American Slavery is not lost on anyone with eyes to see.
Kate,
Sorry to remind it to you, but just a few short months ago you were mocking those predicting a recession. I say that when the Great Bush Depression finally hits, we eat the journalists first. http://www.smalldeadanimals.com/archives/2008_08.html
So, who did you eat so far?
GreenNeck, do you mean a few short years? If so, you’re right. Cons like Kate only really get concerned with deficits and small government when the “other guys” are in charge.
Deflation it is! Most people mistakenly believe that when money is created it leads to inflation. Not so when the people who are massively in debt cannot access that money. Over-leverage leads to credit contraction which is deflationary. Money becomes more valuable and harder to come by. That means the most heavily leveraged will be forced to sell their possessions to make their payments or lose them to their creditors who will sell them for pennies on the dollar. Everybody loses, big time!
Deflation it is!
If I were you I’d hedge against both inflation and deflation. You can use a magic 8-ball to predict which it will be, odds are it will be more accurate than most economists and pundits out there.
I would not rule out Weimar-style inflation in the US in the next few years. Most countries have experienced something similar in the last 100 years. Gold and land remain very good investments.
Cons like Kate???
You insult your host? She has harmed you how?
We are on an economic event horizon. We will be pulled in with the US and others.
There is too much debt, corruption and waste in the world to ease out of and back to economic health. On-going wars, the relentless march toward economy-destroying socialism.
I see no let up on the gas pedal. We will need to hit the wall full speed before the stupor subsides and reality be dealt with.
I agree that we are in they eye of a storm. We will either emerge from it more free with greater opportunity or in a quasi fascist state that robs us blind in it’s refusal to let go of the purse strings and some of it’s power.
Depends who wins the culture war in the USA.
Actually, the eye of the storm feels deflationary. The main body of the storm is inflationary due to monetary expansion and competitive currency devaluation. And frankly, I thought this was a Canadian blog. What’s up with all the American data? Their problem is quite a bit different than ours.
Also, the constant attribution of current economic conditions to a specific presidential administration seems naive at best. This trend (monetary expansion and increased deficit spending) has been going on for quite some time now, notwithstanding the accounting tricks that were used (courtesy of advice and collusion from Rubin, Summers and Greenspan, more or less the same guys who have been in charge of the Treasury and the Fed for the last 25 years or so…) during the Clinton Administration. There was no real surplus then, just the beginning of fooling around with FASB reporting rules as well as the beginning of significant changes to the measurement of CPI. Using the pre-Clinton era method of calculating CPI, inflation in the United States is now running at about 5.5%, the official (current methodology) rate is about 2.1%.
ALL Administrations do whatever they can to make inflation look small for practical reasons (indexed pensions and wages are tied to BLS CPI, huge operational budget items) and while doing their best to hide monetary expansion (the primary source of increased deficit spending). In fact by declaring “war” the (W) Bush Administration was able to keep most of the spending in Iraq and Afghanistan completely off the books and double down on expansionary monetary policy (zero interest rate at the discount window) for a very long time, thus supporting the housing bubble (needed politically to mitigate the effects of the popping of the previous stock market bubble). Some trick!
So umm… what’s your point Kate? Too bad about the poor Americans? Maybe Canada should further diversify our trade partnerships to avoid having the elephant roll over on us? Or maybe just find someone to blame and feel self-satisfied that “at least we aren’t as bad as them”?
Hard to tell what you intend, yep it’s a head scratcher.
Just asking.
As Canadians we should not get too complacent. Our turn is coming. http://globaleconomicanalysis.blogspot.com/2010/03/california-usa-vs-ontario-canada-which_29.html
As fas as deflation inflation is concerned it will be inflation as governments that are deep in debt will just print money to pay their debts. Once they start borrowing just to pay the interest on their debts their creditors will loose confidence and a currency crises will ensue. This will lead to more money printing and inflation. This has happened many times in history. Deflation happens in countries that are creditors not huge debtors.
Luckily we have an economist at the helm, and because of Preston Manning coercing Libtards into balancing the budget, no matter what happens we’ll be way better off than the sots south of the border unless they say it’s closer to get Alberta’s oil than Iraq’s.
The Japanese gambit seems in play. Huge public patronage style expenditures with financial institutions stuffed full of government loans to prop them up while they are forbidden to provide adequate loans to keep small businesses afloat.
The best recovery strategy would entail ejecting marxist parasites from public sector employment and cutting other forms of useless government waste at all levels.
“Sorry to remind it to you, but just a few short months ago you were mocking those predicting a recession.”
No, I wasn’t. I was mocking those campaigning for one.
“Hard to tell what you intend…”
Sometimes, I don’t intend anything. Sometimes I just find stuff interesting.
Economists have been predicting the fall of the US economy since the early 90’s. All the warnings were conspicuously ignored.
The recession was and is not an accident. As we have seen with the takeover of GM and others, the way to enslave a people or nation is to own them. Either there will be a revolt by the people which a containment strategy is already in place. The tea partiers already being called a militia group by the media and O’s promise of a civillian army, which undoubtly will hand out merit badges to the likes of people like cytotoxic and Greeneck, was announced pre-election. Then there is the FEMA camp coffin amassing rumour that has served as a fear tactic that has assisted the O administration’s strategy.
Another strategy involves bailing out (buying – owning) the people through forgiving a portion of mortgages and personal debt. The most preferably O outcome would of course be submission to his plan because he is worshipped as the Messiah. A combination of the three is most likely probable.
Ok, cool… thanks Kate. 😉
Americans still haven’t clued into the simple fact that they brought this all on themselves by letting lawyers abscond with their government while they weren’t paying attention. It’s all because they are so obsessed with money while living their cheap trailer-trash MalWart lifestyles.
The problem is the Leader of the USA is not listening to the American people, and is completely ignoring the state of the economy – reality; hence, his extremely poor rating. It has nothing to do with his race or with tea party’s and everything to do with his actions and extremely poor policies.
Who in their right mind buy’s a Mercedes (health care bill) when they are going bankrupt? Who would be so selfish in their own ambition as to take the food of the tables, jobs and homes away from the very people who gave him his job and trust, and to whom he is responsible for and accountable to for ensuring and protecting their liberty and opportunity for prosperity? Only an insane selfish man with a hidden agenda would do such a thing. All those, in my view, who defend this man’s policies and selfish ambition are likewise insane; completely ignoring reality – wishing upon a star.
BTW, I apologize for my previous post – forgive the poor grammar on my part – a period where there should be a comma, and spelling errors.
Global warming abvocates always tell us skeptics that “weather is not climate”.
How does that relate to this discussion? – you might ask.
I would put it this way, “today’s ‘recession, deflation/inflation’ is not so much the issue as – what the manipulation of the US economy today is going to have with the “type” of economy the US will have in the future.
I hope that wasn’t too deep for some of you.
In America the wealthiest 25% pay 75% of the income tax revenue, and they own the companies that pay the corporate taxes that keep the country running. The poorest 50% of the ‘taxpayers’ pay no income tax at all.
Now who do you think the government listens to when they make decisions as to how that tax revenue should be spent? The wealthiest 25% or the poorest 50%?
The so-called ‘bailouts’ are little more than a ‘tax refund’ to the people who paid most of the taxes in the first place.
Ya don’t s’pose that the wealthiest 25% are primarily the ones what get all the bailout monies do you? Once you’re in the game, the dealer seems to make sure the players are well taken care of – without tax receipts to boot.
Actually, John Galt, the wealthiest 10% (i.e. not 25%) pay 73% of federal income tax.
DEflationary? I wish, given all the money the governments are pumping out.
Socialism . . . spending other people’s money until there isn’t any left.
Then “Let the Borrowing Begin”
Obama’s record deficit’s are leading America into voluntary economic slavery with China as their new Massa.
The irony of America’s first black president being responsible for the second epoch of American Slavery is not lost on anyone with eyes to see.
Kate,
Sorry to remind it to you, but just a few short months ago you were mocking those predicting a recession.
I say that when the Great Bush Depression finally hits, we eat the journalists first.
http://www.smalldeadanimals.com/archives/2008_08.html
So, who did you eat so far?
GreenNeck, do you mean a few short years? If so, you’re right. Cons like Kate only really get concerned with deficits and small government when the “other guys” are in charge.
Deflation it is! Most people mistakenly believe that when money is created it leads to inflation. Not so when the people who are massively in debt cannot access that money. Over-leverage leads to credit contraction which is deflationary. Money becomes more valuable and harder to come by. That means the most heavily leveraged will be forced to sell their possessions to make their payments or lose them to their creditors who will sell them for pennies on the dollar. Everybody loses, big time!
Deflation it is!
If I were you I’d hedge against both inflation and deflation. You can use a magic 8-ball to predict which it will be, odds are it will be more accurate than most economists and pundits out there.
I would not rule out Weimar-style inflation in the US in the next few years. Most countries have experienced something similar in the last 100 years. Gold and land remain very good investments.
Cons like Kate???
You insult your host? She has harmed you how?
We are on an economic event horizon. We will be pulled in with the US and others.
There is too much debt, corruption and waste in the world to ease out of and back to economic health. On-going wars, the relentless march toward economy-destroying socialism.
I see no let up on the gas pedal. We will need to hit the wall full speed before the stupor subsides and reality be dealt with.
I agree that we are in they eye of a storm. We will either emerge from it more free with greater opportunity or in a quasi fascist state that robs us blind in it’s refusal to let go of the purse strings and some of it’s power.
Depends who wins the culture war in the USA.
Actually, the eye of the storm feels deflationary. The main body of the storm is inflationary due to monetary expansion and competitive currency devaluation. And frankly, I thought this was a Canadian blog. What’s up with all the American data? Their problem is quite a bit different than ours.
Also, the constant attribution of current economic conditions to a specific presidential administration seems naive at best. This trend (monetary expansion and increased deficit spending) has been going on for quite some time now, notwithstanding the accounting tricks that were used (courtesy of advice and collusion from Rubin, Summers and Greenspan, more or less the same guys who have been in charge of the Treasury and the Fed for the last 25 years or so…) during the Clinton Administration. There was no real surplus then, just the beginning of fooling around with FASB reporting rules as well as the beginning of significant changes to the measurement of CPI. Using the pre-Clinton era method of calculating CPI, inflation in the United States is now running at about 5.5%, the official (current methodology) rate is about 2.1%.
ALL Administrations do whatever they can to make inflation look small for practical reasons (indexed pensions and wages are tied to BLS CPI, huge operational budget items) and while doing their best to hide monetary expansion (the primary source of increased deficit spending). In fact by declaring “war” the (W) Bush Administration was able to keep most of the spending in Iraq and Afghanistan completely off the books and double down on expansionary monetary policy (zero interest rate at the discount window) for a very long time, thus supporting the housing bubble (needed politically to mitigate the effects of the popping of the previous stock market bubble). Some trick!
So umm… what’s your point Kate? Too bad about the poor Americans? Maybe Canada should further diversify our trade partnerships to avoid having the elephant roll over on us? Or maybe just find someone to blame and feel self-satisfied that “at least we aren’t as bad as them”?
Hard to tell what you intend, yep it’s a head scratcher.
Just asking.
As Canadians we should not get too complacent. Our turn is coming.
http://globaleconomicanalysis.blogspot.com/2010/03/california-usa-vs-ontario-canada-which_29.html
As fas as deflation inflation is concerned it will be inflation as governments that are deep in debt will just print money to pay their debts. Once they start borrowing just to pay the interest on their debts their creditors will loose confidence and a currency crises will ensue. This will lead to more money printing and inflation. This has happened many times in history. Deflation happens in countries that are creditors not huge debtors.
Luckily we have an economist at the helm, and because of Preston Manning coercing Libtards into balancing the budget, no matter what happens we’ll be way better off than the sots south of the border unless they say it’s closer to get Alberta’s oil than Iraq’s.
The Japanese gambit seems in play. Huge public patronage style expenditures with financial institutions stuffed full of government loans to prop them up while they are forbidden to provide adequate loans to keep small businesses afloat.
The best recovery strategy would entail ejecting marxist parasites from public sector employment and cutting other forms of useless government waste at all levels.
“Sorry to remind it to you, but just a few short months ago you were mocking those predicting a recession.”
No, I wasn’t. I was mocking those campaigning for one.
“Hard to tell what you intend…”
Sometimes, I don’t intend anything. Sometimes I just find stuff interesting.
Economists have been predicting the fall of the US economy since the early 90’s. All the warnings were conspicuously ignored.
The recession was and is not an accident. As we have seen with the takeover of GM and others, the way to enslave a people or nation is to own them. Either there will be a revolt by the people which a containment strategy is already in place. The tea partiers already being called a militia group by the media and O’s promise of a civillian army, which undoubtly will hand out merit badges to the likes of people like cytotoxic and Greeneck, was announced pre-election. Then there is the FEMA camp coffin amassing rumour that has served as a fear tactic that has assisted the O administration’s strategy.
Another strategy involves bailing out (buying – owning) the people through forgiving a portion of mortgages and personal debt. The most preferably O outcome would of course be submission to his plan because he is worshipped as the Messiah. A combination of the three is most likely probable.
Ok, cool… thanks Kate. 😉
Americans still haven’t clued into the simple fact that they brought this all on themselves by letting lawyers abscond with their government while they weren’t paying attention. It’s all because they are so obsessed with money while living their cheap trailer-trash MalWart lifestyles.
The problem is the Leader of the USA is not listening to the American people, and is completely ignoring the state of the economy – reality; hence, his extremely poor rating. It has nothing to do with his race or with tea party’s and everything to do with his actions and extremely poor policies.
Who in their right mind buy’s a Mercedes (health care bill) when they are going bankrupt? Who would be so selfish in their own ambition as to take the food of the tables, jobs and homes away from the very people who gave him his job and trust, and to whom he is responsible for and accountable to for ensuring and protecting their liberty and opportunity for prosperity? Only an insane selfish man with a hidden agenda would do such a thing. All those, in my view, who defend this man’s policies and selfish ambition are likewise insane; completely ignoring reality – wishing upon a star.
BTW, I apologize for my previous post – forgive the poor grammar on my part – a period where there should be a comma, and spelling errors.
Global warming abvocates always tell us skeptics that “weather is not climate”.
How does that relate to this discussion? – you might ask.
I would put it this way, “today’s ‘recession, deflation/inflation’ is not so much the issue as – what the manipulation of the US economy today is going to have with the “type” of economy the US will have in the future.
I hope that wasn’t too deep for some of you.
In America the wealthiest 25% pay 75% of the income tax revenue, and they own the companies that pay the corporate taxes that keep the country running. The poorest 50% of the ‘taxpayers’ pay no income tax at all.
Now who do you think the government listens to when they make decisions as to how that tax revenue should be spent? The wealthiest 25% or the poorest 50%?
The so-called ‘bailouts’ are little more than a ‘tax refund’ to the people who paid most of the taxes in the first place.
Ya don’t s’pose that the wealthiest 25% are primarily the ones what get all the bailout monies do you? Once you’re in the game, the dealer seems to make sure the players are well taken care of – without tax receipts to boot.
Actually, John Galt, the wealthiest 10% (i.e. not 25%) pay 73% of federal income tax.