1 An opion and some "blogcrap" on Wed Sep 30, 2009 3:22 am
(Glenn Beck sez:) "But this second dip will be accentuated by inflation. We will face, not the stagflation of the 70s, but depressflation, negative growth and high inflation simultaneously. Unfortunately, the policies that would cure one condition will only worsen the other one. The low interest rates and economic stimulus necessary to kindle growth will exacerbate inflation while the high rates that would cure price increases would depress the economy further.There is just too much debt out there and inflation is inevitable. The United States now borrows between 40 and 50 cents of each dollar it spends. The deficit has tripled since 2008. And, with all the world's governments following the U.S. into debt and deficit, governments cannot find enough lenders and have to print their own money, a sure portent of disaster." /// OK, this is a quote from Glenn Beck's book as postef on Newsmax.com. So why post it here? Because it agrees exactly with what I posted about 6 months ago. I don't know what sources Beck usus,but I based my opinions on statements made by real economists (Stuart Varney,Paul Volker, others) I have already been affected since I didn't get my usual COLA increase this year due to a total lack of economic growth. That cost me about 3% or about $54/month. If and when we hit an inflationary spiral, I'll get that back in huge COLA increases. But spiralling inflation will be devastating to the working public. Employers will be constrained from raising wages due to lack of growth and income. Yet costs of everything will rise due to ever increasing rises in credit rates and the drastic drop in the dollar's real value. That will raise the cost of OIL (that's for you,Zorro) and absolutely any and everything imported. I have little debt, my car payments are fixed, and my home is paid for,so I won't get hurt,but, I am curious if we guessed this right.
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