Episode-156- Recovery Equals Inflation

Right now everyone is wondering when the economy is going to recover.  They are waiting for it as a tribesman awaits rains coming to the desert.  Oh won’t it be a glorious day when the Dow reverses course and begins a sustained climb, the banks open the mortgage food gates and “good Americans” do their patriotic duty and spend money?

Hold on, my problem with this is in reality this is the recovery!  The nation turned into a bunch of credit, debt and spending addicts.  What you see now is the nation in rehab!  300 million addicts coming off the spending spree and going through detox!

It won’t last!  The Federal Reserve and their drug cartel (banks, credit card companies and financing organizations) might not be willing to kill their clients with an overdose, yet they can’t allow them to go strait either.

Soon the peer pressure and dealer pressure will start up again.  Come on honey the Jones family just got a new car, the Smiths at work just got a new house and their are buyers for our house now.  Besides I just got a raise and we have saved up a lot of money.  Let’s enjoy life, you can’t take it with you!

The TV and Radio and the Dancing Girls at Weather.com will advertise “low mortgages that anyone can qualify for”.  The good times will return!  With them, inflation like we have never seen before.  When it happens don’t forget the pain of today, don’t go back to being an addict.  “Stay the course”, the one your grandparents set, value your money, save for a rainy day and buy what you need, not what you covet.

Today’s show discusses these concepts, explains the fallacy of a decline in the M3 Money Supply and will help you deal with a recovery that will actually be a relapse of the addiction and lead to a bigger crash then we just went through.

Resources for Today’s Show

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6 Responses to Episode-156- Recovery Equals Inflation

  1. Interesting theory on the FED. Makes sense why Ben won’t disclose who the money went to. As for the rest I disagree. They blew their wad. This money coming out will go into the hands of the same who just finished stuffing their pockets. You said it yourself, wages won’t and haven’t gone up. The spending is over& Buffet was wrong down 20% & now he is down 40% and he sold puts on the S&P that will eventually take him down entirely, he won’t live long enough to see it happen, dated 10 years out. Normal people can’t get mortgages now. Most people don’t have fico scores in the 800 range & that is what it takes to get a mortgage. I would love to believe there is another run coming but it isn’t going to happen. That is my opinion. Good show though.

  2. Modern Survival

    @B4banko,

    Nice comment but I don’t know what you disagree with?

  3. brentwrangler

    Devaluation of the dollar…I was young enough to now better and still too young to care the last time I saw this happen, and it seems to me it was the Mexican Denaro that fell apart. I dont recall all the reasons why the Mexican government printed more money, when they had nothing to back it up, then I am thinking it was NAFTA, and exporting more gasoline and LP to the US that gave them back a GDP. Could the Fed change the currency if the recovery takes too long? Does that mean the North American Union has a toe hold? Since US automakers are on the ropes, what else can we create that will support our GDP? Where could economic recovery actually come from ? Spending for the sake of spending? Flexing our Military Muscle? National Projects? Infrastructure support?

  4. There is only one way to recover. We have to start producing things here. The only way I believe that will happen is on a relatively small scale; the large companies (including Uncle Sam, Inc) are all into cheap labor. We need to find where we can acquire what we need from other Americans. The more $$$$$ goes overseas to buy cheap crap from China Mart, the longer any possible recovery will take.
    You can actually find things if you try; I recently bought a nice pushbroom at Lowe’s, made right here. There’s a number of websites that sell American goods; do a little searching. I have some pants and shirts, that, while they were not as cheap as the Chinese/Indian/whatever counterparts I’ve had in the past, they also did not fall apart quickly, either.

  5. Foxy Huntress

    Buy from the local farmer’s markets & craft shows…all made in the good old US of A!