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<p>[QUOTE=&quot;Rono, post: 834266, member: 6492&quot;]Howdy folks,</p><p>&nbsp;</p><p>Most delightful discussion.&nbsp; </p><p>&nbsp;</p><p>I&#039;ve got a nice if not longish article on inflation deflation hyperinflation etc. that is interesting reading. </p><p>&nbsp;</p><p>However, a couple of things.&nbsp; There seems to be some disagreement about the economy and existing state of affairs.&nbsp; This is sort of incorrect from my perspective.&nbsp; What we have is a dual economy - an Economy of Yes and an Economy of No, if you will. </p><p>&nbsp;</p><p>In the Economy of Yes, my spouse and I have decent jobs with benefits and some sort of pension (DB or DC), an IRA, a 401K, some savings, maybe some taxable investments, 30 year fixed rate mortgage, kids are in school.&nbsp; Hey, life is good.&nbsp; &quot;more wine?&quot;.</p><p>&nbsp;</p><p>In the Economy of No, I had a job at the factory but they closed and are now building them in China.&nbsp; Then I was working construction but that ended a couple of years ago with the subprime meltdown.&nbsp; My unemployment ran out.&nbsp; Wifey works at walmart making $10.&nbsp; Neither of us have any benefits and hope we don&#039;t get sick.&nbsp;&nbsp; Had to cash out my pension and 401 to pay bills but we&#039;re now behind on the mortgage and they&#039;re threatening foreclosure.&nbsp; Savings are gone, no IRA, no retirement, son&#039;s on drugs and daughter&#039;s pregnant.&nbsp; Life sucks.&nbsp; &quot;You have another one of those beers?&quot;</p><p>&nbsp;</p><p>And folks the problem is that the latter category is bloody huge and the former doesn&#039;t even realize the latter exists.&nbsp; Hell, you listen to the Kudlows of the world and it&#039;s all great.&nbsp; If you have money in stocks, you&#039;re doing great.&nbsp; But think about what&#039;s supporting the stock market.</p><p>&nbsp;</p><p>It&#039;s all the Quantitative Easing money Uncle Ben&#039;s been dropping from B-2 bombers looking for a home.&nbsp; Interest rates are zero and all that excess money has to go somewhere and the stock market is about the only game in town with a positive ROI (except gold and silver, TYVM!).</p><p>&nbsp;</p><p>So the stock market gains right now are simply the manifestation of inflation.&nbsp; And if a lot of that money that&#039;s being held by the banks ever starts to circulation - look out kids.&nbsp; </p><p>&nbsp;</p><p>Before I post the article, anyone ever visist <a href="http://www.shadowstats.com" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://www.shadowstats.com" rel="nofollow">www.shadowstats.com</a>?&nbsp; Great site where he calculates all the gov&#039;t stats the way they used to be calculated before they started fiddling with the formulae.&nbsp; </p><p>&nbsp;</p><p>Anyway, when you have time&nbsp; read this article.</p><p>&nbsp;</p><p><a href="http://www.gold-eagle.com/editorials_08/hera030910.html" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://www.gold-eagle.com/editorials_08/hera030910.html" rel="nofollow">http://www.gold-eagle.com/editorials_08/hera030910.html</a></p><p>&nbsp;</p><p>And have a good day,</p><p>&nbsp;</p><p>peace,</p><p>&nbsp;</p><p>rono[/QUOTE]</p><p><br /></p>

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