develj, I like a lot of the things you post. You seem to be able to cover the macro situation pretty well, from a perspective. However I take real umbrage with your, “get over it life ain’t fair,” attitude.
Thats the sort of attitude that starts wars. You are right insofar as inherently life ain’t fair. What I see however is that the govt has now blundered through a year of deflation without even admitting the problem. Sure they’ve talked about debt a little bit but not a single institution in our “system” of govt has performed its check or balance properly, which has allowed major fraud to accrue. The real underlying problem with this is that our economy is fundamentally dependent on that fraud for “growth.”
Restructuring our economy away from fraud is what the discovery phase we are in is beginning to do. Our govt however has done everything it could to prevent that from happening and yet you seem to feel that as a general principal TPTB are slowly getting it right? We are now at the point where the Fed is the lender of ONLY resort.
Until we have an honest discussion as a nation about living within our means, we won’t be headed in the right direction as in real economic growth and our debt to GDP will increase simply from GDP decreasing as people with real money take it out of the markets.
As the ultimate demonstration of that, the Fed is monetizing everything in sight, but banks aren’t lending. People don’t want to borrow and the Fed hasn’t found a way to induce them to do so. How could it, we are currently in deflation despite its best efforts to the contrary. As another piece of evidence, gold (which I thought would decline) has stayed expensive and t-bills have increased in price as yield has declined quite sharply. That is because lots of money is trying to bridge the divide between the deflation we are seeing now and the inflation that they are really scared is around the corner if all that printed money does get into circulation, or one of our creditors goes with the nuclear option on their side.
