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Bluegill
1000+ Penny Miser Member
USA
1964 Posts |
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1000+ Penny Miser Member
USA
3121 Posts |
 Posted - 07/13/2009 : 17:51:38
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What does Bill Bonner think we should be doing prior to this upcoming depression? Buy corporate bonds? I get the sense that he thinks we've got a 1929-1932 scenario upon us, which was DEFLATIONARY.
Do you know more about this guy? |
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The things that will destroy America are prosperity-at-any-price, peace-at-any-price, safety-first instead of duty-first, the love of soft living, and the get-rich-quick theory of life.
– Theodore Roosevelt
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fb101
Administrator
USA
2856 Posts |
Posted - 07/13/2009 : 18:24:47
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He's thinking that in part because since 1930 nobody has been stupid enough to raise taxes in a recession, until now.
Also, the hike in minimum wage right now with small businesses faltering will result in higher unemployment. When the taxes roll in, consumer spending on other than energy will be cut off at the knees and that will be causing higher unemployment and more mortgage defaults....wow, deja vu. That is deflationary in a big way. The other side of the coin is that TPTB plan to inflate us out of the current crisis so we'll have more dollars, but a loaf of bread will be $12. This will be just like the stagflation of the 70s with a continuously rising unemployment rate, except it is the Gov't that will be at the root of it.
What I'm wondering at the bottom of all this seriously, is whether we'll get the inflation from consumer spending which will be in question with the 20+% unemployment we'll have holding down consumer credit OR from the rapid decline of the dollar causing import (which is almost everything now) prices to soar. Or both? |
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It’s June 1930:
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