Tuesday, January 29, 2008
World Inflation
Bernanke chose the only way out of the subprime and other unpayable indebtness of America, that is, inflation. Today the US dollar is sold in Rehov Allenby of Tel Aviv (the street corner Georgian fellow) at 3.6 shekels, while only a month ago it was 4.2 shekels. The dollar lost 15% of its value. People with dollar denominated debt is happy, banks and the Chinese bond holders are going to suffer.
Subscribe to:
Post Comments (Atom)
3 comments:
Yes, and your average American wage earner is going to be tickled pink about his part in saving the economy by losing purchasing.
My (?) average American wage earner has been living over his means now for many years. Everybody knew this day was coming.
There is everybody and there is everybody. I'd guess a lot of us had a "this can't go on forever" feeling. There were others who had the belief that the government or the fed could pull some rabbit out of the hat.
the sane knew something had to give, we just hoped it would happen after our kids finished college. Well, maybe that wasn't sane.
I saw a cartoon once where a sleazy stock broker is saying to his mark, "Sir, I can assure you with absolute confidence there will never be another depression, and even if there is, they will never call it that." I think that is a lot of the mindset here.
Post a Comment