- The risk that the stimulus programs work, and;
- The risk that the stimulus programs do not work.
If the programs work, and the Fed is successful in re-inflating the U.S. credit markets and economy, we risk significant inflation.
If the programs do not work, will foreign US$ holders want to hold the currency of the world's largest debtor experiencing a contracting economy and productivity? NAFC.
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Capitalism is Dead. The free market is Dead. The level of denial on this front is staggering.
Capitalism, as we thought we knew it, is gone - and it ain't coming back. Now pay close attention. The political Left, now ascendent, will have a new group of "haves", but they will have their "haves" just the same (I was never an establishment "have" and have no affinity for the group). The political implications of this are staggering, and those implications are coming.
I have been a life long Libertarian Republican, and I am completely embarrassed by what the Republicans have wrought. We have out-socialized the Democrats. How's that for irony? And rather than take a hint from the voters and do just a smidgion of demographic research, the Republicans are threatening to continue their failed strategy of hypocritical PREACHING. Maybe they will get the hint when the House of Reps has only a couple dozen Republicans left.
To be fair, I firmly believe much of the economic collapse, and resultant increase in budget deficits was caused by the first wave of the energy crisis which is not the fault of any political party. Still, it is time to acknowledge the real problem and get to work.
Mentatt (at) yahoo (d0t) com
3 comments:
It's hard to tell what the next 4 years will bring the Democrats. By 2012 they may be as soiled as the Republicans. I don't see coherent leadership anywhere.
Regards,
Coal Guy
We had cheap oil/energy for a long time, and it has created a humanity that believes it can have anything and everything. Both liberals and conservatives see no reason not to borrow any amount of money that is "needed" so we don't start living like lesser organisms. Living more-or-less cheaply like I try to do is laughed at. There is plenty of interest in capitalism and running your own business, if not here, than in lots of other countries. Let's not get ahead of ourselves. We still need a money-ed class to do the heavy lifting in this world. Mr. Greenspan stupidly made credit too cheap for too long, and the recent success of Reagan, Thatcher and Clinton was greatly facilitated by cheap oil. Obama will not be that lucky, and neither will we. The next 2 shoes to drop will be 2009's unemployment figures, and whether or not the rest of the world is gonna loan us any more money. Or, shall we start our very own Nazi party now, to get a head start? Hitler was a direct result of out-of-control inflation. His sickness was ultimately an economic creation.
B'crat:
Capitalism is DEAD here in America. Most small businesses re entreprenurial not capitalist. They do not aggregate capital for the most part, and government interference even in small biz is getting to be overwhelming.
We may have some from of hybrid socialism/capitalism with socialism dominating. America appears to be moving from a center/right to center/left nation. As this unfolds, I cannot see how socialist creep does not continue.
Coal Guy:
The Obama campaign was as coherent as any political machine has ever been, but let us see if they can translate that into governing.
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