Wall Street showed due respect to Greenspan yesterday with the
obligatory FED RALLY.
OK Well, that was yesterday's news; NOW COMES REALITY.
THE DECLINES IN CONSUMER SPENDING ARE NOT TEMPORARY;
Rather they're the result of THE END OF BUBBLENOMICS!
No longer can consumers pay off credit card debt with HOUSE INFLATION
AND A QUICKY RE-FI!
And, still have enough left over to buy a new car to boot! Those
days are over, or are ending fast.
For one, the HOUSING BUBBLE is about to collapse in and of itself,
because HOUSE PRICES ARE UNSUSTAINABLY HIGH, no matter what the rate
environment is.
And, what the rate environment is is not good! And it will get worse.
Clearly, the Fed wants to get out of bizarro interest rate LALA LAND,
ASAP!
Hence, the "measured rate" increases NO MATTER WHAT.
And, "the what" is higher oil prices, a systemic weak dollar, and
even a WARNING BY THE IMF that structural debt and deficits in
the US poses a risk to the world economic system.
CLEARLY, THE "RECESSION EXPRESS" HAS LEFT THE STATION!
AND IT'S GOING TO BE AN ALL DOWN HILL RUN FROM HERE.
The FT recently had a section on Central Europe, which is growing
almost as fast as China and India.
But, from where is the growth coming: domestic consumption?
Dream On!
Its coming from the same place that India's growth is coming from:
US AND EUROPEAN OUTSOURCING OF JOBS!!
BUT, IS FIRING PEOPLE OVER HERE; AND HIRING THEM OVER THERE REALLY
GROWTH? I don't see it that way. You are reducing purchasing power
in an amount equal to expenses. And, productivity is just another
word for GLUT! Productivity without purchasing power is GLUT!
so;
THE GLOBAL ELITES ARE MERELY RE ARRANGING THE DECK CHAIRS ON THE
TITANIC.
ALL OF THE OUTSOURCING, BUBBLENOMICS, PAPER MONEY HANKY-PANKY, AND
OUT RIGHT THEFT AND LOOTING FROM CORPORATIONS AND GOVERNMENTS IS
FINALLY COMING HOME TO ROOST!
GREENSPAN'S BUBBLNOMICS ROLLER COASTER IS REACHING THE TOP OF THE
INCLINE, AND IT'S A LONG LONG WAY DOWN FROM HERE.
SO, LIKE A NAUGHTY SCHOOL BOY, ALL WE CAN SAY IS:
THANK YOU SIR, MAY I HAVE ANOTHER!
