Sure you don’t think the changes will be severe because you have no idea of what will happen. It is simple to say they will not be severe. In reality we have never gone down this road. In fact we have never come close to going down this road. You don’t know what it is like to live in an inflationary world or double digit interest rates. I have.
Why don’t you propose a feel good solution and let’s see if it makes sense.
Given the employment situation, given our debt load, given the demographics of our aging society, given the staggering percentage of our federal budgets entitlements gobble up, I am not inclined to paint the soft landing you seem to espouse.
The same people are in charge who have always been in charge. Those who said there was no equities bubble in 2000, those who said there was no housing bubble, and now they are saying this is the only way to stimulate the economy. Just crash the currency and keep smiling. It will be okay. We will borrow and then spend our way out of the hole correct?
There really are not great conclusions when it is all thought out. Furthermore, as usual you are centric to you Brian, not your children. Those of us who are parents care more about the future then those who do not.
Other countries are at least taking a stab at austerity. Like I said it didn’t matter who won because nobody has the political will to impose what needs to be done. It is FOR THAT VERY REASON that the changes will be more severe. There are some pretty good books out there about the destruction of the dollar. You may want to read them.
I was happy with the results though because I didn’t agree with the policies of this administration. I didn’t agree with the policies of the previous one before this and the one before him either. However as I said, we are way passed the point of change through election. Rather thange will be imposed upon us.
Many people think that in the best case we could be careening towards a society much like the late 70s or early 80s. High rates, high inflation. Others think we could be in for a Japan style lost decade of severe low rates and no growth. The only trouble with either of those scenarios is our debt, our entitlements, and our employment numbers.
I have done alot of travelling the past 6 months and one thing I can say is that the sweeps that we saw on election night in the middle of the country are 100% driven by employment. People are in a world of hurt there. Brian things are nice and easy for you in California but for most everywhere else in the country where I have been it is pretty crappy. Severe change has already taken place, and it did not happen over decades.
Lastly, guys like Roubini and Bill Gross say QE2 is doomed to fail and a bad idea. Brian from San Diego is okay with it though… I will go with guys like Roubini.
