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Sunday, May 6, 2012
World economy: Prediction for 2012
These things indisputably occurred during the fantastic Dow and Housing run up from 1980-2008:
A massive socialist strengthening of world central banks by the dismantling of the gold standard.
A massive socialist expansion of government fueled by an incredible expansion of government debt.
A massive capitalist dismantling of the financial regulatory system.
A massive capitalist expansion of the financial sector fueled by the creation of massive new complex unregulated debt markets
A massive socialist program of bank and savings and loan bailouts and subsidies financed by more massive government debt engineered by Reagan and Bush 2.
A massive capitalist dismantling of the progressive tax code.
A massive socialist coordination of the destruction of the purchasing power of the dollar in order to decrease the burden of the debt load, engineered primarily by Alan Greenspan along with Reagan, Bush, Clinton, Bush.
A massive socialist financing of several wars by more massive government debt.
A massive capitalist relaxation of regulations and tariffs that permitted unprecedented financial globalization.
To understand what will happen in the future of our economy all you need to do is answer this simple question: Which of these are causes of the Dow and Housing run up that fueled our 30 year expansion, which are correlations?
The winners get to preserve their capital over the next 10 years. The losers lose pretty much everything.
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