Doubtful that bernanke will stand by…..
Deflation is where we’re at right now. That’s what “monetary collapse” means. Printing press money is used, as a last resort, to add money to the system. Yet money supply is falling. No one is sure why. If it doesn’t reverse course we have the 30’s all over again.
The big question is where did all the money go? I didn’t get any.
And the second half of the stimulus funds are scheduled to be spent this fiscal year to save as many Dem’s as possible. If the economy is perking along by sometime early next year oba mama is toast.
Bet on a boom. Remember Clinton moved to the right after Dem’s got slaughtered and was reelected handily. We need even bigger checks to save his sorry black Marxist ass.
The policies of the Federal government are set to benefit those who hold the levers of power. Deflation benefits those who own the debt, inflation benefits the debtors. The Financial Power Elites are not the debtors–we are.
The usual debate about what’s in the cards, deflation or (hyper) inflation, assumes the market or the Federal Reserve/Treasury will be the definitive factor. The more fruitful analysis starts with asking what benefits the Financial Power Elites who influence the process of governance.
I have annoyed a great many readers over the years without intending to do so, and I risk doing so once again by invoking the term the politics of experience, which is the very core of the Survival+ critique.
Why is an analysis of the political nature of our experience so important? Because it sheds a unique light through the subtexts and smokescreens deployed by the status quo to mask the way specific policies benefit politically powerful players. By askingcui bono– to whose benefit?–we can parse out why deflation or mild inflation is in the cards and hyperinflation is not.
Who benefits from high inflation? Those with debts to pay. Debts get easier to pay if inflation eats up 10% of the debt’s purchasing power every year. If income and debt remain unchanged in nominal terms but income retains the same purchasing power, in five years of 10% annual inflation, the debt will have effectively been slashed by 40%.