Wednesday, April 30, 2008

Big Lie #1

A while back I made some predictions.

1. The first recession in 26 years will last between 8 and 11 months and cause widespread dislocations specifically in housing.

10. A major financial figure will expose one, maybe two flat out lies that the media had been reporting in financial matters that leads to a rout of the dollar on international markets. Only the complicity of the EU in the lie prevents the dollar from ouster as the currency of trade.

One thing that I have been aware of it that inflation is being manipulated. There are important reasons for this: first, most government entitlement increases are based on inflation. Keep it low and government spending is less. Second, businesses are often faced with demands from unions and employees to increase wages when inflation increases their costs, keeping inflation low reduces business costs. You might wonder how or why I think inflation is being manipulated. Let me offer both an illustration AND an analysis from my betters:



Subtract this inflation rate from our growth rate and you would have been in negative growth territory in the first quarter. We will see what happens today.

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