We are in the process of deleveraging the most leveraged economy in history. Many investors look at this deleveraging as a positive for the United States. We, on the other hand, look at this deleveraging as a major negative that will weigh on the economy for years to come and we could wind up with a lost couple of decades just as Japan experienced over the past 20 years. It is true that Japan didn't act as quickly as we did but our debt ratio presently is much worse than Japan's debt ratios throughout their deleveraging process.
Presently, the stock market is exploding to the upside, which you could say argues against the case we are attempting to make in this special report. However, if you step back and look at the larger picture, you can see that the stock market is still down over 35% from the highs reached in 2007 and also down over 33% from the highs reached in early 2000. In fact, the market now is acting in the same manner as it did in early 2000 at the peak of the dot com bubble and again in 2006 & 2007 at the combined housing and stock market bubble.
This seems to us to be a "mini bubble" of stocks reacting to an abundance of "money printing" by governments all over the world since stocks are rising worldwide. Of course, if the U.S. doesn't recover there will be no worldwide recovery since the rest of the world is still dependent upon the U.S. consumers' appetite for their goods and services (despite the so called growth of domestic consumption in China and India). We, however, don't believe that the U.S. massive stimulus programs and money printing can solve a problem of excess debt generation that resulted from greed and living way beyond our means. If this were the answer Argentina would be one of the most prosperous countries in the world. This excess debt actually resulted from the same money printing and easy money that we are now using to alleviate the pain.
A MUST READ
Printing press programs like Cash for Clunkers are the last hurrah!
ReplyDeleteTalk about putting a bandaid on the wall of the Hoover Dam!
What's the 411 on the government using the cash for clunkers website to probe civilian computers for porn or what have you?
ReplyDeleteI guess I can't use that website lol.
ReplyDeleteNo, it is worse than that. You agree to your computer becoming a 'federal terminal' etc. I mean shit! Past dictators and madmen would salivate over what our government is doing now.
It never ends. Well, it will end eventually. Badly.
It will end in REVOLT OR REVOLUTION?
ReplyDeletehttp://pencildicksvstheworld.blogspot.com/2009/08/revolt-revolution.html
Staged or not staged, the town hall meetings are showing the people can say no. In the past we have not risen up and said no effectively. Today the American is saying not "no" but "hell no". It has to take the big wig elected's a bit aback if nothing else. There are arguments as to whether it is staged. Nonetheless, the general public is seeing on TV, that across the country people are fed up. I can't see why it would be to the Demopublicans(government"s) advantage to rouse up the news on it. They could simply just force-feed the bill through, no town hall meetings, like they do on other things.
ReplyDeleteFrom the little snippets of news on TV, you seem to get the sense that people want a better health care availabilty, but they want Uncle Sam totally out of it. If town hall meetings are indeed legit, this method isn't cutting it. One thing that might happen is that big wig elected's might so fear for getting booted in the next "selection" that they will go back to DC and hunker down. Time will tell.
So what is next?
Government paid auto insurance?
Government paid home insurance?
I think DC should drop this nonsense and move on to something else.
The town hall meetings are not about health care, they are about the growing division between the will of the people and the will of the government.
ReplyDeleteAccusations of stagery serve to increase the citizenrys awareness that government will ignore their will.
More than likely we are going to need to assume that the violent town hall meetings are benefiting the government in some way. Reason is the media attention given. In things that dont benefit the government, the media is told to ignore it. About the only way you can figure out something like this is to ask "Who benefits from it?"
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