Friday, June 20, 2014

The Economy - Inflation

According to the government, inflation in the U.S. is under 2%, but have you been to the market lately? Have you you filled your car with gas lately? Have you paid your utility bill lately? Have you paid for your health insurance lately? Have you paid taxes lately? All of that is up dramatically over the last year or two. If all of that is much higher, than what has not been going up (or has been going down to keep inflation under 2%)? The reality in the normal world is that prices have been going up considerably and wages have either been stagnant or gone down. The "normal people" on main street are paying the price for bailing out Wall Street, the big banks, and the U.S. treasury. Add to this all the debt that has piled up over the last few years (both private and public) and we are being set up for a huge economic catastrophe. Interest rates will go up, and when they do, prepare yourself for a sell off that will make the last recession look like a party. There is an economic storm coming. You can't keep printing money and piling up debt at the rate we are and not have consequences. You can't "print" your way to prosperity. You can't borrow your way to wealth. You can't keep sowing the seeds of calamity expecting to reap the rewards of abundance. The party will end and it will end badly. The inflation we are experiencing now is just a little taste of what is to come.

What do you think?

Just a note: The News - Daily Summary will be discontinued. Instead there will be commentary on specific news stories and events.