Today's Washington: Headless and Heedless - Barrons.com:
"All of the above points to the discontinuity one feels with respect to the idea that things are turning up and halcyon days are returning.
On one hand, there is the lassitude of Japan - where one doesn't have inflation, one has an expanding (ever expanding government deficit0, continuing high taxes, and apparently stagnant or at-least-not-expanding economy or government sector, a decline in savings, etc. - but no inflation and in fact deflation.
There are investment gurus who see this happening in the US.
Clearly, the US is continuing to allocate more and more resources to the government (state and federal) to hand out as social benefits and benefits to overpaid public employees - none of which increases production and all of which takes resources and incentive from the private economy.
Is it like starving a prize bull but still expecting performance and lots of new cows? Or, is the deprivation made up for (and going to be made up for) with money printing?"
Sunday, December 13, 2009
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