THE FACT THAT EVERYTHING THIS BLOG PREDICTED HAS COME TO PASS HAS NOT BE NOTED...PERHAPS OUT OF MODESTY...
BUT STILL... THE TRACK RECORD OF GLOOM AND DOOM HAS BEEN CONSISTENTLY RIGHT OVER TIME...
THE KEY PHRASE BEING "OVER TIME".... THIS BLOG IS PLAIN VINILLA MACRO-ECONOMICS...NOTHING MORE NOTHING LESS...
AND OF COURSE THE FINANCIAL MEDIA IN THE US...TOUT TV AND FOX...ARE REALLY INTO CREATING ILLUSIONS...AND TOUTING THE MARKETS...
SO "WINNING" THIS ONE...WAS NOT REALLY THAT HARD...
OK...FINE... BUT WHAT'S NEXT....?
PROBABLY A REPLAY OF THE 1978-82 SCENARIO...
STAGFLATION...HIGHER OIL...PLUNGING DOLLAR...THEN VERY HIGH RATES FOR ABOUT 3 TO 5 YEARS...TO "CORRECT" THE RUN IN GOLD AND OIL...
BUT GOLD IS THE ONLY PLAY UNTIL THE FED WAKES UP AND READS IT'S MANDATE...WHICH IS A STABLE CURRENCY AND FULL EMPLOYMENT...
AND NOT TO BAIL OUT THE SPECULATING CLASSES ON WALL STREET....
BERNANKE IS GUILTY OF INCREDIBLE MONETARY MALPRACTICE WITH THIS HYPER-LIQUIDITY PLAY OF LATE...
ANY SIGN OF A RATE HIKE COULD CRASH GOLD QUICKLY...ESPECIALLY IN THIS FAST NEWS CYCLE ENVIRONMENT.
AND SET THE MARKETS OFF ON ANOTHER..."TIGHTENING" HAIR BRAINED TANGENT...WHICH COULD LAST FOR YEARS...
BUT THAT MAY BE A 2011 STORY... STILL YOU HEARD IT HEAR FIRST...NEVERTHELESS.
RIGHT NOW EVERYTHING IS COMPLETELY UNSUSTAINABLE...
THE REAL QUESTION IS WILL THE US ECONOMY...WHICH IS SO UNPRODUCTIVE AND DISEASED...BE SALVAGEABLE AT ALL....AS IT WAS AFTER THE 1978-82 CYCLE...
OR IS IT PERMANENTLY DAMAGE...AND IRREPAIRABLE...?
CAN SOMETHING BE DONE...TO MAKE THE US ECONOMY SUSTAINABLE LONG TERM...PERHAPS OVER TIME.
BUT THE 20TH CENTURY AMERICAN ECONOMIC EMPIRE IS OVER...
THE WESTWARD COURSE OF EMPIRE HAS MOVED ACROSS THE PACIFIC...
TO CHINA, INDIA AND THE REST OF SOUTH ASIA....
