So dumb carpenter boy here is in a state of complete confusion. The latest reports show that the Producer Price Index is up 1.7% and retail sales were up 2.7%, the largest increase in three years. How can this be? Unemployment is 16%+, credit is unavailable and people have watched their assets disappear. Why would we see inflation rear it's head. I know that the money is being printed like crazy but still, if no one is buying why would prices go up? Could it be that the appearance of looming inflation may be seen as an advantage to the government? If people think prices are going to rise would they push forward demand to buy at a cheaper price? If we had money, maybe. I don't think it's going to work this time. I believe we are entering a deflationary period because everyone is financially exhausted or just too leery of the future to spend any money at all. No demand equals lower prices, regardless of everything else. And if I remember right, this action, when tried in the 30's, just created a bubble that popped, plunging the country deeper into depression. It took a World War to start to get us out.
Anyway, this video may help to show why it might be in the interest of the financial sector to overstate inflationary pressure. Besides, Pete Smith Specialties are great to watch.
"Children, it is the last hour; and just as you heard that the antichrist was coming, so now many antichrists have appeared. Thus we know this is the last hour. They went out from us, but they were not really of our number; if they had been, they would have remained with us. Their desertion shows that none of them was of our number. But you have the anointing that comes from the Holy One, and you all have knowledge. I write to you not because you do not know the truth but because you do, and because every lie is alien to the truth."
1st John 2:18-21
“The hottest places in hell are reserved for those who in times of great moral crises maintain their neutrality”
Dante Alighieri
“Always vote for principle, though you may vote alone, and you may cherish the sweetest reflection that your vote is never lost.”
John Quincy Adams
“Government is not reason, it is not eloquence, it is force; like fire, a troublesome servant and a fearful master. Never for a moment should it be left to irresponsible action.”
George Washington
“If once the people become inattentive to the public affairs, you and I, and Congress and Assemblies, Judges and Governors, shall all become wolves. It seems to be the law of our general nature, in spite of individual exceptions.”
Thomas Jefferson
" I come from a state that raises corn and cotton and cockleburs and Democrats, and frothy eloquence neither convinces nor satisfies me. I am from Missouri. You have got to show me."
Willard Duncan Vandiver
"The issue is, to use a sporting metaphor, whether in the game of life the government shall captain the national team or shall act as referee."
S. Harcourt-Rivington
"The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people."
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Only Pete Smith could make this subject enjoyable . . ."Oh No Look Out For That Ladder"
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