by Sixstrings » Sun 07 Nov 2010, 14:24:11
$this->bbcode_second_pass_quote('dolanbaker', '')$this->bbcode_second_pass_quote('Xenophobe', '
')After Bens announcement this week, it doesn't seem that deflationary cycles are the concern?
Printing money is the supposed (cure) for deflation, how else do they keep the bubbles inflated and the money flowing into their pockets! Just how big can they actually blow them before TSHTF.
Exactly.. to answer Xenophobe's question, the money printing is just a house of cards. The Fed is trying to juice up the stock market and maybe even get home prices inflating again (don't see that happening though). But all of this money isn't hitting the real economy. They can print money, but they can't print jobs -- the unemployed are still there.
The Republican congress will not only stop the comp extensions, but they have plans to make it HARDER for newly laid off to collect (they're going to require proof they you're attending college or votech classes, more proof of your job searches, basically just a lot of paperwork design so folks fall through the cracks).
So after the Repubs get done with the lower classes and unemployed, then millions of small businesses will go belly-up for lack of customers. The Fed can put ten trillion dollars into the stock market and it still wouldn't help small business one bit -- bottom line folks, a restaurant goes under without folks eating out. Grocery stores close. All the "Mom and Pop" shops will be the first to go, since they don't get a dime out of all the trillions the Fed gives to Wall Street (whereas Walmart can survive, they can just issue new stock since the Fed is buying).
After the Republicans get done with us, all the Mom and Pop restaurants and hardwares stores will be gone, with only Walmart and big chain restaurants left standing. The American small business dream will be over, unless you have two million bucks for an approved corporate franchise.
Tax revenues will plummet, and local governments will lay even more off. It's a deflationary avalanche, and it can all happen even if the Fed pumps the Dow up to 30,0000.