Deflation is winning

[Arraya]

Finally, the debt and deficit swell to the point where foreigners are no longer sure they will get paid back in full because there is no sign the U.S economy will grow fast enough to make up for the increased spending and interest payments.

O’Neill, fired in a shakeup of Bush’s economic team in December 2002, raised objections to a new round of tax cuts and said the president balked at his more aggressive plan to combat corporate crime after a string of accounting scandals because of opposition from “the corporate crowd,” a key constituency.
O’Neill said he tried to warn Vice President Dick Cheney that growing budget deficits-expected to top $500 billion this fiscal year alone-posed a threat to the economy. Cheney cut him off. “You know, Paul, Reagan proved deficits don’t matter,” he said, according to excerpts. Cheney continued: “We won the midterms (congressional elections). This is our due.” A month later, Cheney told the Treasury secretary he was fired.

[gandalf]

Josh, thanks for your post. Really well-written and right on the money in my humble opinion. The big question is what next? Here’s my sense, for what it’s worth.

I’m in the deflation camp for now. Nothing left in the tank to inflate wages, so no price pressure in the short term. However, I think we are at great risk right now of currency failure followed by hyperinflation. Denominating oil in something other that the dollar could trigger a chain of events that causes confidence in the dollar to fail.

What’s propping us up right now? I think the size/strength of our economy/currency as compared with other regions, and also systemic inertia and psychology. That could change. It’s hubris to think otherwise. The imbalances created during the bubble — the numbers are just staggering, utterly mind-blowing. We’re walking the edge of a razor in terms of economic collapse.

Also, I believe pragmatic and multilateral foreign policy is absolutely critical to our interests right now. Economic collapse was ALWAYS the closing strategy behind AQ’s war against US. There is a great deal of wealth in the world controlled by interests opposed to American hegemony. These are strange times and we ought to take care.

[gandalf]

Josh, thanks for your post. Really well-written and right on the money in my humble opinion. The big question is what next? Here’s my sense, for what it’s worth.

I’m in the deflation camp for now. Nothing left in the tank to inflate wages, so no price pressure in the short term. However, I think we are at great risk right now of currency failure followed by hyperinflation. Denominating oil in something other that the dollar could trigger a chain of events that causes confidence in the dollar to fail.

What’s propping us up right now? I think the size/strength of our economy/currency as compared with other regions, and also systemic inertia and psychology. That could change. It’s hubris to think otherwise. The imbalances created during the bubble — the numbers are just staggering, utterly mind-blowing. We’re walking the edge of a razor in terms of economic collapse.

Also, I believe pragmatic and multilateral foreign policy is absolutely critical to our interests right now. Economic collapse was ALWAYS the closing strategy behind AQ’s war against US. There is a great deal of wealth in the world controlled by interests opposed to American hegemony. These are strange times and we ought to take care.

[gandalf]

Josh, thanks for your post. Really well-written and right on the money in my humble opinion. The big question is what next? Here’s my sense, for what it’s worth.

I’m in the deflation camp for now. Nothing left in the tank to inflate wages, so no price pressure in the short term. However, I think we are at great risk right now of currency failure followed by hyperinflation. Denominating oil in something other that the dollar could trigger a chain of events that causes confidence in the dollar to fail.

What’s propping us up right now? I think the size/strength of our economy/currency as compared with other regions, and also systemic inertia and psychology. That could change. It’s hubris to think otherwise. The imbalances created during the bubble — the numbers are just staggering, utterly mind-blowing. We’re walking the edge of a razor in terms of economic collapse.

Also, I believe pragmatic and multilateral foreign policy is absolutely critical to our interests right now. Economic collapse was ALWAYS the closing strategy behind AQ’s war against US. There is a great deal of wealth in the world controlled by interests opposed to American hegemony. These are strange times and we ought to take care.

[gandalf]

Josh, thanks for your post. Really well-written and right on the money in my humble opinion. The big question is what next? Here’s my sense, for what it’s worth.

I’m in the deflation camp for now. Nothing left in the tank to inflate wages, so no price pressure in the short term. However, I think we are at great risk right now of currency failure followed by hyperinflation. Denominating oil in something other that the dollar could trigger a chain of events that causes confidence in the dollar to fail.

What’s propping us up right now? I think the size/strength of our economy/currency as compared with other regions, and also systemic inertia and psychology. That could change. It’s hubris to think otherwise. The imbalances created during the bubble — the numbers are just staggering, utterly mind-blowing. We’re walking the edge of a razor in terms of economic collapse.

Also, I believe pragmatic and multilateral foreign policy is absolutely critical to our interests right now. Economic collapse was ALWAYS the closing strategy behind AQ’s war against US. There is a great deal of wealth in the world controlled by interests opposed to American hegemony. These are strange times and we ought to take care.

[gandalf]

Josh, thanks for your post. Really well-written and right on the money in my humble opinion. The big question is what next? Here’s my sense, for what it’s worth.

I’m in the deflation camp for now. Nothing left in the tank to inflate wages, so no price pressure in the short term. However, I think we are at great risk right now of currency failure followed by hyperinflation. Denominating oil in something other that the dollar could trigger a chain of events that causes confidence in the dollar to fail.

What’s propping us up right now? I think the size/strength of our economy/currency as compared with other regions, and also systemic inertia and psychology. That could change. It’s hubris to think otherwise. The imbalances created during the bubble — the numbers are just staggering, utterly mind-blowing. We’re walking the edge of a razor in terms of economic collapse.

Also, I believe pragmatic and multilateral foreign policy is absolutely critical to our interests right now. Economic collapse was ALWAYS the closing strategy behind AQ’s war against US. There is a great deal of wealth in the world controlled by interests opposed to American hegemony. These are strange times and we ought to take care.

[kewp]

[quote=gandalf] There is a great deal of wealth in the world controlled by interests opposed to American hegemony. These are strange times and we ought to take care.
[/quote]

Have to disagree with you there.

My theory is that all the worlds wealthiest folk realize they have a good thing going and are happy with the status quo. They are willing to do what it takes to keep it that way.

Remember, AQ is at odds with the Saudi Royals as they considered them our toadies.

[kewp]

[quote=gandalf] There is a great deal of wealth in the world controlled by interests opposed to American hegemony. These are strange times and we ought to take care.
[/quote]

Have to disagree with you there.

My theory is that all the worlds wealthiest folk realize they have a good thing going and are happy with the status quo. They are willing to do what it takes to keep it that way.

Remember, AQ is at odds with the Saudi Royals as they considered them our toadies.

[kewp]

[quote=gandalf] There is a great deal of wealth in the world controlled by interests opposed to American hegemony. These are strange times and we ought to take care.
[/quote]

Have to disagree with you there.

My theory is that all the worlds wealthiest folk realize they have a good thing going and are happy with the status quo. They are willing to do what it takes to keep it that way.

Remember, AQ is at odds with the Saudi Royals as they considered them our toadies.

[kewp]

[quote=gandalf] There is a great deal of wealth in the world controlled by interests opposed to American hegemony. These are strange times and we ought to take care.
[/quote]

Have to disagree with you there.

My theory is that all the worlds wealthiest folk realize they have a good thing going and are happy with the status quo. They are willing to do what it takes to keep it that way.

Remember, AQ is at odds with the Saudi Royals as they considered them our toadies.

[kewp]

[quote=gandalf] There is a great deal of wealth in the world controlled by interests opposed to American hegemony. These are strange times and we ought to take care.
[/quote]

Have to disagree with you there.

My theory is that all the worlds wealthiest folk realize they have a good thing going and are happy with the status quo. They are willing to do what it takes to keep it that way.

Remember, AQ is at odds with the Saudi Royals as they considered them our toadies.

[gandalf]

Hope you’re right, kewp.

[gandalf]

Hope you’re right, kewp.

[gandalf]

Hope you’re right, kewp.

[gandalf]

Hope you’re right, kewp.

[Author]

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