Stagflation is Coming
I said on this blog a few days ago that I think Stagflation is coming: High inflation, high interest rates, and high unemployment. The reason is that the dollar is being devalued by the Fed, which is creating trillions of dollars out of thin air. This naturally makes creditors – the people who lend us money, and our government money – very nervous.
Foremost among our creditors is China. And now, Chinese students apparently laughed at Treasury Secretary Tim Geithner when he claimed that Chinese investments in the US were safe:
A major goal of Geithner’s maiden visit to China as Treasury chief is to allay concerns that Washington’s bulging budget deficit and ultra-loose monetary policy will fan inflation, undermining both the dollar and U.S. bonds.
China is the biggest foreign owner of U.S. Treasury bonds. U.S. data shows that it held $768 billion in Treasuries as of March, but some analysts believe China’s total U.S. dollar-denominated investments could be twice as high.
“Chinese assets are very safe,” Geithner said in response to a question after a speech at Peking University, where he studied Chinese as a student in the 1980s.
His answer drew loud laughter from his student audience, reflecting skepticism in China about the wisdom of a developing country accumulating a vast stockpile of foreign reserves instead of spending the money to raise living standards at home.
Draw your own conclusions.
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June 3rd, 2009 at 9:35 pm
Do you even read your own blog?
Oak Leaf thinks everything is coming up roses and gets huffy if anyone disagrees.
Why do you keep him here?
You’ve allowed Oak Leaf to destroy your blog and have never responded to our questions as to why you keep him here.
June 3rd, 2009 at 10:04 pm
Nobody’s ever seen a mkt run 40% off lows with little pullback, since the early thirties anyway.
This mkt has caught all off guard huge. All expected maybe a 20-25% run,then a fall back but to get 40% with not more than a 1-2 day low vol pullback is quite amazing and freaky. Shorts fear of the ppt is well founded.
The fact that there has been no pullback is VERY bearish IMO.
Of course, the market may keeps going up for a while longer (despite today’s drop) so its possible that short term it’s still bullish. But medium to long term very very bearish.
At some point, the banks will have to start reporting losses. When it happens, see you all who “stayed invested” at the bottom.
June 4th, 2009 at 3:29 am
Unfortunately I believe that you are correct. This problem takes years of careful management to reverse
June 4th, 2009 at 3:55 am
BCL, why aren’t you spooning with the others at bejohngalt?
June 4th, 2009 at 4:37 am
Talk show host, Hal Turner, arrested:
http://www.courant.com/news/local/hc-turner-arrest.artjun04,0,99236.story
June 4th, 2009 at 5:36 am
Well if there is stagflation, that means stock prices should go up a lot.
June 4th, 2009 at 5:51 am
Fred-
What is your fascination/hangup with spooning? Were you not hugged enough as a child?
Acroso-
Stagflation does not necessarily mean higher stock prices. Look at the 70′s.
June 4th, 2009 at 6:03 am
Antiwar radio: Gareth Porter, independent historian and journalist for Inter Press Service, discusses the new developments in the “smoking laptop” story and the strongest evidence yet that Israeli intelligence, using the MEK as a front, created the laptop forgery to frame Iran for pursuing nuclear weapons.
June 4th, 2009 at 6:19 am
Poli,
You need to read Oak’s blogs for some needed optimism. I’d actually like for there not to be a fiscal meltdown…but somewhere, somehow, Obomba’s reckless policies are going to take effect – to the detriment of the country. Then look out!
Cry Freedom – or Die!
June 4th, 2009 at 6:23 am
Poli – Get Oak Leaf off your blog. This blog went to sh*t once you got rid of Lorie Byrd and company. Oak Leaf is the worst kind of conservative and you need to rid of him.
June 4th, 2009 at 7:27 am
The post is about stagnation—which is something this site is suffering through!
June 4th, 2009 at 7:51 am
MI Conservative – Because Poli abandoned the GOP over immigration and then put an economic liberal/social wack job like Oak Leaf in charge. It is sad.
June 4th, 2009 at 8:27 am
Oak makes no sense. On some issues he tries to talk populist,but supports the policies(big spending,printing money)policies that Bush used and that Obama has taken to new heights.
June 4th, 2009 at 9:54 am
What is your fascination/hangup with spooning?
Just mirroring the other poster’s hangup about the direction of this website.
My point is, go spoon at another website, stop whining.
June 4th, 2009 at 10:56 am
Just mirroring the other poster’s hangup about the direction of this website.
I think you should use posters’ instead of poster’s.
I’m asking legitimate questions and making legitimate criticism. You have the hangup and are whining.
I’ve contributed to this site for nearly five years though not so much lately. What Oak Leaf contributes is Bent, but not Conservative.
I think an explanation or statement from Poli is in order regarding the direction that one poster on this site has taken. It seems to be in contradiction the the Conservative Bent this site advertises and has resulted in an exodus from this site, or haven’t you noticed?
If you don’t like it then tough titty Freddy.
June 4th, 2009 at 11:00 am
I think you should use posters’ instead of poster’s.
You are absolutely correct, multiple people visit and whine. Visit and whine. Visit and whine.
Good catch.
I think an explanation or statement from Poli is in order…
Only if one takes the internet seriously. Which is why I say that you go to begaltwhater and spoon.
June 4th, 2009 at 6:03 pm
Hey Fred, If you don’t like whining set an example for the rest of us and stop whining.
Besides, I don’t know why you take it personally, but our complaints are directed at Poli who owns the blog. It’s none of your business.
Now I’ll get back to ignoring you.
June 5th, 2009 at 6:04 am
Spoonatbejohngalt.com
June 5th, 2009 at 7:34 am
spoon=cuddling