Seeds of Their Own Destruction

Tuesday, April 12, 2011
By Paul Martin


All those new dollars being created by an apparently-still-panicked Fed are pushing up asset prices across the board (with housing the only exception) and pushing the dollar down to near-record lows versus other currencies. The charts look eerily like a replay of 2007, which, of course, is exactly what policymakers want. Rising asset prices, according to the prevailing logic, will get us spending and borrowing again and return the economy to self-sustaining expansion. 2006 and 2007, for the people running this show, were the good old days.

What they seem to be missing is that these trends contain the seeds of their own destruction, just as they did four years ago. Oil, for instance, is back above $100 a barrel, which translates into $4 a gallon gas, which amounts to a sizable tax increase on the consumers who are supposed to start spending again. CNBC just reported that gas sales have fallen for five straight weeks.

The Rest…HERE

Leave a Reply

Join the revolution in 2018. Revolution Radio is 100% volunteer ran. Any contributions are greatly appreciated. God bless!

Follow us on Twitter