WHEN IS PRINTING MONEY NON-INFLATIONARY...
WELL...WHEN IT'S BEING PRINTED FOR THE ASSET BUBBLES...!!
REMEMBER ASSET INFLATION HAS NEVER BEEN A "BAD THING" IN THE AMERICAN ECONOMY SINCE AT LEAST 1982...!
SO WHILE ON THE SURFACE THE MASSIVE MONEY ISSUANCE THAT WE SEE TODAY...SEEMS LIKE IT SHOULD CAUSE "REAL ECONOMY" PRICES TO RISE...
THAT HAS NOT BEEN OUR RECENT HISTORY...THANKS MAINLY TO THE "CHINA DEFLATION!"
OR SO THE STORY GOES ....
AS LONG AS THE NEW MONEY CAN BE HERMETICALLY SEALED IN THE FINANCIAL COMMUNITY...IE ON WALL STREET...THE FED CAN PRINT ALL THE MONEY IT WANTS...!!
CHINA WILL PROTECT US FROM ANY REAL ECONOMY PRICE INFLATION....
WHY?
BECAUSE ALL BERNANKE WANTS IS FOR STOCKS OR SOME OTHER ASSET TO RISE...
ANY ASSET BUBBLE WILL DO!!
BUT THIS HAS BEEN THE UNRECOGNIZED FALLACY IN THE AMERICAN SYSTEM...FOR YEARS!!
THE NOTION THAT ASSET INFLATION IS "GOOD INFLATION....!!"
AND THE CHEAP LABOR FROM CHINA HAS ABATED THIS NOTION...BY CAUSING A CONTINUOUS "DE-INDUSTRIALIZATION" OF THE DOMESTIC AMERICAN ECONOMY...
SO THE FEAR IS THAT THAT BANKS "WON'T LEND" THE BAILOUT MONEY....? BUT WHERE WILL IT GO...?
NO DOTCOMS...REAL ESTATE IS STILL IN THE ICU...!
CAN THE BANKS INVEST IN WALL STREET PAPER ASSETS...?
AND THUS RESTART OUR BELOVED BUBBLES THAT WAY...?
THUS "CURING" THE US ECONOMY YET AGAIN... ACCORDING TO THE BERNANKE VIEW OF THE US ECONOMY....?
I DON'T SEE IT... ANY INFLATION IN PAPER ASSETS WILL INCLUDE A RUN UP IN COMMODITIES...
IT WAS THE "SUDDEN" PARTICIPATION OF COMMODITIES LIKE OIL AND GOLD THAT QUEERED THE LAST BUBBLE IN REAL ESTATE... !
PERHAPS, REAL ESTATE AND COMMODITIES ARE TOO CLOSE IN THE TRADER "MINDSET...?"
BUT WHAT ELSE COULD THE FED AND WALL STREET INFLATE TO "GET A BUBBLE?"
ANY BUBBLE....!! PLEASE!!....
ANYTHING THAT THE GENERAL PUBLIC CAN'T EASILY "GET AT" ... BUT THAT WILL ENHANCE THE POSITION OF THE BANKS, WALL STREET AND THE RICH...SO THAT THEY CAN ISSUE "CREDIT" ON THE VALUE OF THE BUBBLE!!?
WELL, MAYBE OBAMA WILL COME UP WITH SOMETHING....?
YA THINK....?
