Stagflation or Brain Stagnation?
The month of November brought a slower stock market. Most Americans were Giving Thanks for having jobs, any job, at any price. Those who were not so fortunate to find part-time employment in some Walmart or McDonald’s Gave Thanks for the numerous food recalls. The trash bins have never been so bountiful. A smorgasbord of free meat and vegetables were readily available even if they did carry a few uninvited guests. Never look a gift horse in the mouth. The government found an unintended ally to fight obesity. The 50% annual inflation in energy and food is helping Americans, if they can avoid the temptation of government subsidized, fructose based, foods from the supermarket shelves, shed a few pounds.
Our politicians continue to use their screened data to support that the economy is doing great even while consumer confidence hits decade lows, the falling dollar, energy prices at historically high levels, the housing market in the worst free fall since the great depression, and food pricing doubling every year. Governmental data indicates flat GDP. This is no small feat with the way the US government chooses to calculate GDP. We have seen this before. Most Baby Boomers have lived through it. It was the late 70s that we coined the phrase STAGFLATION.
Our government is moving with its usual competency. The FED is preparing for another bailout of the financial institutions along with lowering interest rates. Now that is just what we need, interest rates cuts, utilization of tax dollars to bailout speculative financial institutions further damaging public accounts, tanking the dollar and further increasing inflation.
Recent FED decisions and current statements by FED members has turned the FED into a joke. Market players and Financial Institutions know all they have to do is to shout a little and say how stupid the FED on national television and the FED will do whatever business wants even though the FED knows this will be disastrous for the US economy. This is not surprising considering we have the King of Wall Street as Treasury Secretary.
The current actions of FED will do no more good than the bailout in August. The current economic situation is a direct result of Reaganomics. To simplify America is spending more than it produces. Reaganomics has allowed the government to hide the pillaging of America as they count financial gains as part of GDP. America has become nothing more than marketing and financial institution. It is affectionately called the Service Economy but is nothing more than smoke and mirrors.
Whenever economists discuss the appropriate action of the FED those supporting the bailout proposal find themselves quickly without arguments. There is no good economic reason to reduce the FED funds rate. The final argument, usually shouted, is, “What do you want to do destroy the financial institutions? These are not the housing companies. These companies are America’s economy!”
The FED vice chairman declared today that these actions are necessary. “We must not hold the entire economy hostage to punish speculation in financial institutions!” Yes, American citizens must pay to protect America’s 100 million dollar CEOs from losses on their bad choices.
Corruption is the one thing capable of destroying any great empire. It has brought down the most vicious of dictators and the most democratic of societies. It is a scourge and it will bring America down if we do not take a stand and let our government know that this is not acceptable. I wonder if our current economic crisis is better denoted as STAGFLATION or BRAIN STAGNATION. Is it possible that these really smart people cannot see the obvious writing on the wall? Are they so blinded by their fairytale belief that you can create something from nothing? Have they not learned that Alchemy, just does not work?
To procure a better future we must throw away the rose colored glasses and make significant changes to our system. All traces of Reaganomics must be eliminated from our economy and our government. We must destroy the smoke and mirrors “service economy” and actually produce something of value. The short-term will be bad but the future can be better. If we continue on this path of economic insanity the very short-term may see a rise in the stock market but our short, medium and long-term prospects are nothing short of Armageddon.
Our politicians continue to use their screened data to support that the economy is doing great even while consumer confidence hits decade lows, the falling dollar, energy prices at historically high levels, the housing market in the worst free fall since the great depression, and food pricing doubling every year. Governmental data indicates flat GDP. This is no small feat with the way the US government chooses to calculate GDP. We have seen this before. Most Baby Boomers have lived through it. It was the late 70s that we coined the phrase STAGFLATION.
Our government is moving with its usual competency. The FED is preparing for another bailout of the financial institutions along with lowering interest rates. Now that is just what we need, interest rates cuts, utilization of tax dollars to bailout speculative financial institutions further damaging public accounts, tanking the dollar and further increasing inflation.
Recent FED decisions and current statements by FED members has turned the FED into a joke. Market players and Financial Institutions know all they have to do is to shout a little and say how stupid the FED on national television and the FED will do whatever business wants even though the FED knows this will be disastrous for the US economy. This is not surprising considering we have the King of Wall Street as Treasury Secretary.
The current actions of FED will do no more good than the bailout in August. The current economic situation is a direct result of Reaganomics. To simplify America is spending more than it produces. Reaganomics has allowed the government to hide the pillaging of America as they count financial gains as part of GDP. America has become nothing more than marketing and financial institution. It is affectionately called the Service Economy but is nothing more than smoke and mirrors.
Whenever economists discuss the appropriate action of the FED those supporting the bailout proposal find themselves quickly without arguments. There is no good economic reason to reduce the FED funds rate. The final argument, usually shouted, is, “What do you want to do destroy the financial institutions? These are not the housing companies. These companies are America’s economy!”
The FED vice chairman declared today that these actions are necessary. “We must not hold the entire economy hostage to punish speculation in financial institutions!” Yes, American citizens must pay to protect America’s 100 million dollar CEOs from losses on their bad choices.
Corruption is the one thing capable of destroying any great empire. It has brought down the most vicious of dictators and the most democratic of societies. It is a scourge and it will bring America down if we do not take a stand and let our government know that this is not acceptable. I wonder if our current economic crisis is better denoted as STAGFLATION or BRAIN STAGNATION. Is it possible that these really smart people cannot see the obvious writing on the wall? Are they so blinded by their fairytale belief that you can create something from nothing? Have they not learned that Alchemy, just does not work?
To procure a better future we must throw away the rose colored glasses and make significant changes to our system. All traces of Reaganomics must be eliminated from our economy and our government. We must destroy the smoke and mirrors “service economy” and actually produce something of value. The short-term will be bad but the future can be better. If we continue on this path of economic insanity the very short-term may see a rise in the stock market but our short, medium and long-term prospects are nothing short of Armageddon.
Labels: Corruption, Economy, Financial Institutions, US Poverty
posted by Small Business USA at 9:33 AM
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