"US on Its Last Lifeline"?
Monday, July 30, 2007 - FreeMarketNews.com
Jordan Roy-Bryne writing in financialsense.com’s Financial Sense University states:"Quite simply, there is not much more room for the Fed to postpone recession without pushing this country into an unavoidable hyperinflation. On the other hand, if the Fed were to contract the supply of money and credit like they did in 1929, it would bring about the worst deflation in modern economic history. Total credit market debt as a percentage of GDP now exceeds that of 1929. In 1929, this country was self sufficient in energy, manufacturing and capital.Today we import most of our energy, inflation has destroyed the manufacturing sector and finally, we are history’s greatest debtor. "Unfortunately, the majority of the American populace is not aware of the situation. This is because since the Great Depression, Keynesian economics has completely dominated the American educational system. Most citizens, politicians and Wall Street professionals would tell you and believe that we have a free market economy. They have been educated to believe that government involvement and central bank involvement is part of a free market economy. In the same vein, Americans who adhere to the free market Austrian economic principles that the founding fathers espoused, admit they didn't learn these laissez-faire principles in school. At this juncture, our monetary policy and entire monetary system is on its last lifeline..."How much longer can the fiction be maintained so as to keep the public in denial?Jim Willie writes about the ever-spreading rings of risk from the sub prime mortgage fallout, in his Hat Trick Letter:"The systemic risk is slowly being recognized. Denials are increasing at a great pace, regarding 'contagion' and 'containment' and 'spillover' and 'recession' and more. Historically, such denials are a surefire indication of their realistic threats and current felt risks, sure to occur." Staff Reports - Free-Market News Network
Jordan Roy-Bryne writing in financialsense.com’s Financial Sense University states:"Quite simply, there is not much more room for the Fed to postpone recession without pushing this country into an unavoidable hyperinflation. On the other hand, if the Fed were to contract the supply of money and credit like they did in 1929, it would bring about the worst deflation in modern economic history. Total credit market debt as a percentage of GDP now exceeds that of 1929. In 1929, this country was self sufficient in energy, manufacturing and capital.Today we import most of our energy, inflation has destroyed the manufacturing sector and finally, we are history’s greatest debtor. "Unfortunately, the majority of the American populace is not aware of the situation. This is because since the Great Depression, Keynesian economics has completely dominated the American educational system. Most citizens, politicians and Wall Street professionals would tell you and believe that we have a free market economy. They have been educated to believe that government involvement and central bank involvement is part of a free market economy. In the same vein, Americans who adhere to the free market Austrian economic principles that the founding fathers espoused, admit they didn't learn these laissez-faire principles in school. At this juncture, our monetary policy and entire monetary system is on its last lifeline..."How much longer can the fiction be maintained so as to keep the public in denial?Jim Willie writes about the ever-spreading rings of risk from the sub prime mortgage fallout, in his Hat Trick Letter:"The systemic risk is slowly being recognized. Denials are increasing at a great pace, regarding 'contagion' and 'containment' and 'spillover' and 'recession' and more. Historically, such denials are a surefire indication of their realistic threats and current felt risks, sure to occur." Staff Reports - Free-Market News Network
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