WHEN CORPORATIONS ARE MAKING MONEY...BUT ORDINARY PEOPLE AREN'T...
THEN AND ONLY THEN WILL THE CENTRAL BANK HAVE "PERMISSION" TO PRINT MONEY LIKE MAD...!
WHY?
BECAUSE ASSET INFLATION IS "GOOD INFLATION" BECAUSE IT GOES TO THE RICH.
AND REGULAR INFLATION...A/K/A/...WAGE INFLATION IS BAD BECAUSE IT ALLOWS WORKERS TO GET AHEAD AND BUY MORE THINGS THAT CORPORATIONS MAKE...
NO WONDER ECONOMICS IS THE DISMAL SCIENCE...
WE ARE VERY LIKELY NEARING THE END OF THE GREAT ASSET INFLATIONS OF THE 1990-2007 PERIOD...
HOUSING SEEMS TO HAVE NO BOTTOM...BECAUSE IN A SELLERS MARKET THE SELLER DECIDES WHAT A HOUSE IS WORTH...
BUT IN A BUYERS MARKET THE BUYERS DECIDE WHAT A HOUSE IS WORTH...AND THAT'S REALLY SCARY!
GREAT BULL MARKETS...LIKE IN THE 1920'S ALWAYS END WITH A REAL ESTATE CRASH PRECEEDING... IN 1927 IT WAS THE FLORIDA LAND BUBBLE...
SO TO TODAY...BUT ON A MUCH BIGGER SCALE...
IT'S ODD THAT WE HAVE LEARNED SO LITTLE...DESPITE ALL OF THE NOBELS IN ECONOMICS THAT HAVE BEEN GIVEN...!
THE NEXT NOBEL I WANT TO SEE IS THE ONE THAT DEMONSTRATES HOW GLOBALISM AND CHEAP LABOR SQUARES WITH TRADE DEFICITS AND WEAKER CURRENCIES...
WE HAVE CURRENTLY "SOLVED" THE ECONOMIC EQUATIONS FOR CORPORATIONS...AND THEIR DESIRE FOR EVER CHEAPER LABOR AND FEWER RESTRICTIONS ON THE PRODUCTS OF THAT LABOR...
BUT THERE ARE PROBLEMS...OVER PRODUCTION...AN OLD CHESTNUT YOU DON'T HEAR ABOUT MUCH ANY MORE...
AND THE "STRUCTURAL" TRADE DEFICIT...WHICH SEEMS TO BE THE 800 POUND GORRILLA AT THE ECON SEMINAR THAT EVERYONE WANTS TO IGNORE!!
GOLDILOCKS IS PLAYING WITH THE BEARS... THAT'S A DANGEROUS JOB IN ANY EVENT... THE END RESULT IS PROBABLY QUITE PREDICTABLE...!
