posted on Feb, 6 2011 @ 11:15 PM
Trump is no idiot. He's often right, and he's learned how expensive it can be to be wrong. He's no stranger to taking risks.
So, the current economy is unquestionably artificially inflated by the Fed. Everyone knows this. Everyone knows we're playing a game of kick the
can down the road. People selling underwater houses have played the same game; put the home up for sale at what was the market price, then put it up
for sale for what they owe, then negotiate with the bank for lower balance, then try a short sale, then finally quit making payments and accept
foreclosure. The game ends up with worse consequences than if the problem was faced straight on in the beginning.
Stocks: The Fed poured liquidity into banks which banks poured into stocks, the stock market is artificially inflated and awaits another
Bonds: The Fed is buying worthless bonds and keeping bond issuers afloat, so governments and companies that should have failed are kept alive.
Jobs: The Civilian Labor Force numbers are intentionally fudged lower so that the unemployment rate looks better. Although 200,000 more jobs
per month are needed to maintain the unemployment level, we had 36,000 jobs added in January 2011 and by pure magic the unemployment rate goes from
9.4% to 9.0%.
Inflation: Stocks and bonds were inflated by the Fed, and the government bobble-heads claim there's no inflation. The Fed Food index
(CPIUFDNS) shows inflation of an index of 217 to 221 (+1.8%) from June 2008 to December 2010. Energy index (CPIENGNS) went from 170 to 220 (+23%)
from December 2009 to December 2010. But that's in Dollars. Food inflation in emerging economies are much, much higher, and to stabilize those
countries we'd have to subsidize costs raising prices for advanced economies.
So how long can we keep pumping dollars into the economy to keep it inflated without inflating cost of food? How long can we life in a blue-pill
economy before the wheels stop turning? Will the fixes be worse by kicking the can down the road because we're afraid to face the problem straight
on and fix them?