Agree with the prior statements, classic inflation requires wage inflation. With an economy like ours losing jobs at an epic rate, not only do I not see wage inflation, I see lack of jobs affecting wage creation period.
Maybe we’ll get inflation a few years down the line. (But look at Japan. Japan wasn’t really successful stopping their deflationary spiral, after twenty or so years they might be bottoming now.)
And the jobs I see that are going are good paying jobs…catepillar, high tech, etc. These will be replaced w/ what ? burger flipping jobs ?
The #’s I’ve seen daily for the past year of what our gov’t is doing to save the system truly scare me and I believe have made us numb. FNM, FRE, guarantees to BSC, BAC, the Fed buying MBS and taking toxic assets on their balance sheets. etc etc.
I think what we are experiencing is the great deleveraging of debt that took 25+ yrs to build up.
If you could go back in time and tell a classic economist what has transpired, he’d probably tell you that that was financial armageddon and you no doubt experienced a depression.
I understand that our gov’t is deliberately trying to debase our currency, and I understand gold as a historical store of value, but I’m staying in cash and staying w/ my bunker mentality for now.
