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<p>[QUOTE=&quot;Vess1, post: 1052143, member: 13650&quot;]Have to say I&#039;m with you.&nbsp; And not just to try to raise a panic.&nbsp; Based on the facts, you have to pick a side.&nbsp; There&#039;s a lot of people on this forum that will try to tell you everything&#039;s fine and since we haven&#039;t had any real severe money problems in the past few decades that this will continue.&nbsp; But like you, I believe the game has changed.&nbsp;&nbsp; From what I&#039;ve read, the major reason inflation isn&#039;t slamming us hard now is because they&#039;ve kept interest rates pegged at zero (for how many years now) and the bulk of the new money that&#039;s been created the last two years is still sitting in the banks.&nbsp; Like it doesn&#039;t exist yet because it hasn&#039;t hit the street.&nbsp;&nbsp; The banks have all got burned.&nbsp; They&#039;re going to save it and build up their supply before they start lending it all out again.&nbsp; &nbsp; </p><p><br /></p><p>&nbsp; Anybody applied for a credit card lately?&nbsp; I&#039;ve got one main card two store cards (no balances) and almost a 700 credit score across the board and I can&#039;t obtain another one!&nbsp; Used to be easy!&nbsp;&nbsp; It&#039;s much harder to get mortgages.&nbsp; The money is tied up.&nbsp; Once the banks get comfortable again, they will release all this money (open the flood gates).&nbsp; &nbsp; We will have major inflation and it&#039;s coming sooner than later.</p><p><br /></p><p>&nbsp; Yes, you can make the argument that the money supposedly has more buying power, but at what expense?&nbsp;&nbsp; Products are being made by machines.&nbsp; Products are being made over-seas by people making slave wages.&nbsp;&nbsp; New variables have come into play compared to the early 20th century and before.&nbsp; This doesn&#039;t automatically make things &#039;good&#039; for us.&nbsp;&nbsp; The result is what we&#039;re seeing now.&nbsp; No manufacturing, no hiring.&nbsp; An exploding population with not enough new jobs to accommodate all the young kids graduating college.</p><p><br /></p><p>&nbsp; There will still be winners.&nbsp; A lucky few.&nbsp; Many more will have to struggle now and it&#039;s probably getting worse.&nbsp; A service based society has no way of surviving long term.&nbsp; There&#039;s no new money coming into the system anymore.&nbsp; The government has to create it all.&nbsp;&nbsp; </p><p><br /></p><p>&nbsp;&nbsp; The sole factor driving the economy is consumer spending.&nbsp;&nbsp; Bush encouraged people to be patriotic by going out and going shopping.&nbsp;&nbsp; Every year at this time, yahoo runs a news article with retailers whining that consumer spending isn&#039;t as good as projected or is down. (Though I&#039;ve never been to a mall that wasn&#039;t packed.)&nbsp; </p><p><br /></p><p>&nbsp; The next day, they will run a news article on how to save a million dollars which completely negates what they were trying to get people to do the day before.&nbsp; &nbsp; We don&#039;t educated kids about money in schools, whatsoever.&nbsp; People get little or no education concerning money until they go through adult life and actually experience it.&nbsp;&nbsp; Retailers run adds spending billions of dollars to try to get people to spend all of their money.&nbsp; And they do.&nbsp;&nbsp; Then people are broke when retirement hits.&nbsp; But that&#039;s the way it HAS to be for the economy to be strong and continue to grow.&nbsp; </p><p><br /></p><p>&nbsp; What we have is a very poor system set up.&nbsp;&nbsp; Inflation is not a natural thing that &#039;just happens&#039;.&nbsp; There should never be inflation in a stable money supply.&nbsp;&nbsp; It is very complicated to compare the past to the present, and uninteresting to most.&nbsp; Fortunately for the government, people have very short term memories.</p><p>&nbsp;</p><p>&nbsp; If Bernanke was forced to tell the truth there would be cars flipped over burning in the streets.&nbsp; He/They, <b>have no other choice </b>but to lie to everybody to keep people calm.&nbsp; If they owned the Titanic and were on the ship as it was sinking, they would have told people they were still going to make New York by Friday until the ice water began surrounding their feet.&nbsp; &nbsp; This is what&#039;s happening now.&nbsp; They have to (attempt to be, which is apparently getting harder to do) calm, even as the ship is sinking because they have no other choice.&nbsp; </p><p><br /></p><p>&nbsp;<b>If they told the truth, people would panic so that can&#039;t be an option, AT ANY POINT no matter how bad things get.</b>&nbsp; Anybody who hasn&#039;t settled on this is being willfully nieve.[/QUOTE]</p><p><br /></p>

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