Quote:
Originally posted by Panky
Bush needs to go for multiple reasons, including the fact that the current exchange rate is pathetic. The longer he's in office, the lower it keeps going.
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The definition of the word 'inflation' is NOT an increase of the consumer price index, it is the inflating of the monetary mass.
With Bush printing hundred of billions of dollars, there devaluation of the US dollar is ineluctable, since the "money" is backed by the presumption of productive ability of the country and not by tangible assets like gold.
Politics has nothing to do with the devaluation of money, for Politicians create nothing. The only power they have is to forbid, to menace and to destroy. Laws are inherently coercitive.
Politicians decide to print money, and devaluation ensue. Once the politician pulled the money trigger, nothing will stop that bullet.
- Cause and Effect, my dear. I drink wine all day, I must take a piss - to paraphrase my pal Merv.
You cannot print gold, and this is why all socialistic govt like that of the US and Canada and Europe hates it: it gives the govt no opportunity to pour huge amount of ressources in the pockets of friendly companies like Halliburton.
The effect of inflating the monetary mass is THEFT, in the form of stealing purchasing power from all those who were prudent enough to save in the form of cash (or other immediate liquidities like bonds).
They create a system that favors the Cicada and punishes the Ant.
Ultimately, by the nature of Man and Money, this way of doing things will fail. But not before everyone undergoes greater trouble, unfortunately.
Expect much harder times ahead.
Expect a major crash in the real estate overblow bubble market.
Inflation punished people who were prudent. Deflation give to imprudent people what they deserve. At the present, the system is still going to punish the prudent and favor the imprudents.
Without a complete system collapse, there won't be a reversal.
The end of that road is complete dictature. Saddam Hussein was a good example. The US will become like Irak, eventually.
Foreign wars is the second last choice of despots to finance their caprices.
Both Democrats and Rebublicans are identical in ideology. It's just a matter of which tyran people prefer to be wielding the whip.