On 27/05/2010 2:18 PM, Frogwatch wrote:
In spite of spending a trillion dollars on his porkulus in which Obama
indebted us all to shovel money into the pockets of his buddies, the
money supply is dropping at a rate not seen since the great
depression:
http://www.telegraph.co.uk/finance/e...-stimulus.html
Guess what, raiding the savings of the US middle class to pay off his
union buddies is going to kill the USA economy.

To the professor, it might be frightening but to me, not at all. A
number of factors are at play. Write offs, loses wipe out money. Home
owners taking cash to reduce loan mortgages, larger down payments, as
credit shrinks money cancels off the banks books.

Zero interest rates is actually part of the problem. Why the hell would
anyone loan someone else money for a 0.25% return and all the risk?
Stupid actually. It is why the US government can't borrow and is
creating money by the train loads.

In fact, why should I invest in businesses for a crappy return?

While it shrinks, it staves off inflation. But this trend will not
last. USD needs this contraction or it would be a majorly devalued
currency.

Double dip? At this point it is guaranteed. All the government debt
spending is like pumping up a balloon. Sooner or later it will go pop.
The crack heads in DC didn't learn the first time, so here we go
again. The higher the US debt, the lower we go.

"Great Government/Debt Depression 2008-20xx"

--
I would rather be a paid up Conservative nut job than a Liberal with no
nuts, no job in debt and living off of other people like a leach.