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Yes, I said stimulus, but not the kind you're thinking of. Freak.
So $800 for individual US taxpayers and $1600 for couples is supposed to get people shopping again. Why is that so important? Well because the entire US economy is predicated on people spending money on shiny plastic junk at Wal-Mart. Not manufacturing, not labor, not any semblence of productivity. Once people couldn't sell overpriced houses to each other, the gears began to freeze. And the fundamental problems are still present. There is nothing that can be done to fix a bubble (aka a misallocation of capital) except to let it pop. In prolonging it, it is only more dangerous in the end.
And where do we get bubbles? From the Fed and central bankers literally making money/credit out of thin air. It is completely unnecessary and only serves to ultimately transfer wealth from the middle class to the wealthy. The stimulus plan and rate cuts will do nothing more than further increase inflation, devalue the US Dollar, make things more expensive and get a whole lot of heretofore comfortable people angry. And this will not only affect the US, but since it is 40% of the world economy every developed nation will share the pain. Nobody knows at this point to what degree, but it is certain and it is happening before your eyes. The other certainty is the same criminal elite element that caused the misery-to-be will also have their own contrived "plan" to fix it. And people will be begging for it.
Until next time...
So $800 for individual US taxpayers and $1600 for couples is supposed to get people shopping again. Why is that so important? Well because the entire US economy is predicated on people spending money on shiny plastic junk at Wal-Mart. Not manufacturing, not labor, not any semblence of productivity. Once people couldn't sell overpriced houses to each other, the gears began to freeze. And the fundamental problems are still present. There is nothing that can be done to fix a bubble (aka a misallocation of capital) except to let it pop. In prolonging it, it is only more dangerous in the end.
And where do we get bubbles? From the Fed and central bankers literally making money/credit out of thin air. It is completely unnecessary and only serves to ultimately transfer wealth from the middle class to the wealthy. The stimulus plan and rate cuts will do nothing more than further increase inflation, devalue the US Dollar, make things more expensive and get a whole lot of heretofore comfortable people angry. And this will not only affect the US, but since it is 40% of the world economy every developed nation will share the pain. Nobody knows at this point to what degree, but it is certain and it is happening before your eyes. The other certainty is the same criminal elite element that caused the misery-to-be will also have their own contrived "plan" to fix it. And people will be begging for it.
Until next time...