Why this Blog?

A place where I can lament the changing times; for eccentric comments on current affairs and for unfashionable views, expressed I hope, in cogent style; also occasional cris de coeur largely concerned, I regret to say, with myself.


I welcome your comments, so do please write. Please note however that all comments are moderated prior to publication. Whilst I fully appreciate that life can be frustrating, nevertheless, abuse, SMS language and illiteracy will not be tolerated!

Friday, 19 April 2013

A Grim Prognosis

Regulars will have noticed my references to the excellent site Zerohedge.com.

Today there is an excellent article with rather a grim prognosis for the economy of the USA.  Here's an extract:

The following issues prevent a recovery:
  • No economy can prosper without a strong middle class. They are the productive class in society. They are the small businesses and job creators. Without them, society does not produce. Without production, there is only poverty.
  • Inflation, the cruellest tax of all, is driving up prices while wages and salaries do not keep pace. For those without wealth, there is no way to protect against this theft. For those with wealth, they can rearrange investments to take advantage of inflation, particularly if they are privy to what is coming next.
  • The economy is dysfunctional. It no longer functions efficiently as a result of the burdens it is forced to labour under. The price system has been made less efficient as a result of inflation, manipulated interest rates, subsidies, penalties and other impediments. It no longer provides the information needed by economic actors to make proper decisions.
  • Regime uncertainty discourages action. When economic actors are unable to judge the future, they pull back. Money goes to the sidelines or out of the country.
  • US economic policy and the uncertainty of what comes next has been a great job creator for other countries.
  • Economic growth cannot be forced by central diktats. It occurs only in a climate that is receptive and friendly to risk-taking. It is hard to imagine a worse environment than the current one. That is why there is no investment and no hiring.
Zerohedge's articles tend - arguably reasonably - to be very critical of the present policy of money-printing, which is seen to be the route to financial or fiscal damnation.  Perhaps they are correct?

Until the next time 

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