Tuesday, August 18, 2009

More fantastic news from US

While the Obamination keep breaking his campaign promisses and is making the Afghan war his own, spending hundreds of billions more (Apparently all those speaches about taking troops home that was the main reason for his election, was just another lie)the fed have run out of money to keep buying treasuries i.e. monetarizing government debt.

Unless Bernanke doesn’t change his mind about stopping at $300 billion, there is just a few billions left to play with. Since Geithner the other day urged to expand government expenditures, I do not see why not Bernanke will not do the same. Especially since the housing market is still dropping. Compared to the same period a year ago, building permits declined 39.4 percent, well below expectations. This isn’t really bad news since people don’t have money to buy homes anyway, but it puts a serious dent in the scheme the Obamination administration has. The inventory of total houses under construction fell to record low 609,000 in July while the total number of permits authorized but not yet started also hit a record low at 102,300.

Now here you also need to know that the main reason the American government can plot about their little stimuli and bail-outs is China, whom, tada! Since a couple of months back is a net seller of U.S. Treasuries. So when that unemployment keep rising, debt is sky-high, the treasury is insolvent and there is nothing left to take from and the main lender is starting to slowly move away, what’s left? Only one last alternative in the world of cornflakes and Keynesianism; that oh so funny Guttenberg invention. Well, today it’s a computer and all you need to do is press a couple of buttons and a couple of other trillions pops up, but you get the idea. So all those real economists (and yours truly) that have been warning about hyperinflation seem to have been, again, spot on.

Oh, I cannot wait for this debacle.

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