Another rash of key economics indicators comes out this week, numbers sure to be spun for the government’s confidence game. Posted by James Randolph on August 29, 2011
Don’t be a victim of the government’s confidence game.
August 29, 2011 – Another rash of key economics indicators comes out this week, numbers sure to be spun for the government’s confidence game. But two issues, if not satisfactorily resolved, will make everything else irrelevant.
The first is the final test of our government’s viability. The budget deadline is fast approaching and what matters most to this economy is whether our government can get its act together and pass a budget in time. Doing so would give our country an enormous boost in global confidence, but I fear we are in for a debacle that will far eclipse even that of the debt ceiling debate.
The second issue is of course, Europe. The eurozone’s current superpower, Germany, is having a very tough time selling its citizens on the idea of continued charity to its irresponsible neighbors. Their policy is being hotly contested in the courts of both the legal system and popular opinion, and the outcome is no mystery. Without Germany’s continued support a eurozone meltdown becomes ever more likely, an event that would release more than enough energy to start a chain reaction in the global economy.
The American people feel it – mortgage purchase have plunged more than 7% year over year while the year-over-year increase in the M1 money supply is the highest in history. They have realized that nobody is flying the plane; we are now under remote control.
As long as the government’s economic policy stays fixed on coercing its citizens to spend beyond their means and to invest in risky assets, and as long as the government continues spinning the numbers to stoke up false confidence, the crisis will continue to get exponentially worse.
If I were to give credit to Dr. Bernanke for anything, it would be for his apparent recognition that our leadership has to grow up and get serious before we can hope to get anywhere. This economy simply cannot survive under a government that forces itself to live hand to mouth.
But still nobody has taken the pilot’s seat. Until someone does, one gold parachute will be worth more than all the cash in the world.
Senior Staff Writer – Certified Gold Exchange