It will be a jobless recovery with declining standards of living and mass defaults.
Arraya, this makes no sense. If you have no job creation, there is no recovery. Especially when you include declining living standards, leaving out mass defaults. None of those things is indicative of recovery all of them together cut off any chance of recovery. The best you could hope for is a decreasing recession under such circumstances.
Really though, the bottom callers have been coming out in droves these last few months. Mostly because the stock market is on a tear. The stock market is on a tear because of lots and lots of money loaned to the banks by the govt. That is inflationary, but thats about all that is. Good luck getting that inflationary pressure into consumer pricing. Joblessness will see that this doesn’t happen. More cash flowing into the banking system will just help destroy faith in the dollar as all that money is trying desperately to find a home with nowhere productive to go. Meanwhile the people who could use it aren’t getting it and are losing jobs and homes. That is NOT inflationary.
Long term inflation is the danger, short term, deflation is still the Force Majeure.
