hold the champagne

[jensend]

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/8249181/Deepening-crisis-traps-Americas-have-nots.html

ambrose evans-pritchard is good at pulling together the most relevant factors together to present his argument. i see today the california budget calls for 8 - 10% wage cuts for state employess. doesn't seem too stimulative to me.

[jensend]

quote from above:

Extreme inequalities are toxic for societies, but there is also a body of scholarship suggesting that they cause depressions as well by upsetting the economic balance. They create a bias towards asset bubbles and overinvestment, while holding down consumption, until the system becomes top-heavy and tips over, as happened in the 1930s.

i think we've been seeing all this for the last couple of years. no growth; but money looking for bubbles to capture someone else's investment.

[ajl]

Most of the article is true. It is ironic that the very government meddling in the economy to 'help the poor' does the exact opposite and ends up hurting them. Bernanke's QE because he is worried about unemployment is a classic example. It boosts the cost of housing and gas and undermines savings which hurts the poor.

[jensend]

the quantitative easing funds have gone too much to corporate balance sheets. so we've got another stock market bubble building. nothing has been fixed yet. it could be twenty years of stagflation like japan has had or maybe it will be a quick decisive crash. stay tuned.

[BTOfarmall]

What da heck do you know about da nineteen tirties depression??? Obviously notting...

Da Private Federal Reserve Cartel was brought into Production in da year nineteen tirteen. It only took till da tirties to break da US Bank Account because of dis Entity. Da US has been broke ever since & mathamatecially will NEVER be able to repay da debt. Yer Childrens, Childrens, Childrens, Childrens, futures have been squandered. Dey are now DEBT SLAVES, gist like you's. Da people have da power to end all and fix everyting tomorrow wit da stroke of a pen, but you's are tooooooooo busy tryin to Live da American Dream. Not fer long if'n you's continue down dis turkey trail.......


http://video.google.com/videoplay?docid=-4179505350194809051# - MONEY = DEBT: Modern Money Mechanics & The Fractional Reserve System

[cottonpicken]

I never liked the japan comparison.

If you stand back and look at things this "event" has
been going on for a while now.

All paper simply buys less.

Copper use to be 1$ a pound.
Oil 27$ a barrel.
Gold 375$ an ounce etc,etc,etc.

A few credit based bubble asset classes burst-big
deal.

Anyone with a brain new that trailer parks in florida
should not be worth hundreds of quarters of
farmland.

Just like downtown tokyo wasn't worth all the
property in the u.s.

Kind of like the guys standing around at agtalk
scratching there heads at land values and
screaming top,top,top is in!!!!!

[cottonpicken]

Jensend,when did you start following gold guys like
pritchard?

[jensend]

i've read evans-pritchard for a while now just because he takes a logical, balanced point of view and presents arguments well. i try to read a variety of ccolumnists. i think the comments he made on society structure are particularly relevant in this article.