The Fed’s Ego

This post is a response to Paulson: ‘This is not Chrysler’ on Wall Street Journal, Real Time Economics Blog – posted July 15, 2008

Starting to get a lot more optimistic about the economic opportunity that lies ahead. The economy’s assets and liabilities are shifting perspective and ownership. It will be forced to act more efficiently. It may feel like it will happen super fast, but it has been a long time in the making. For those who embrace it, it will be fun, but for those who don’t, it won’t.

Gold’s going to continue to rise in price as will goods and services from abroad as hyperinflation of the dollar and related “pegged” paper currencies lose real value. Local good and services (especially food) production will become much cheaper and abundant visa vie the expensive long distance alternatives.

The dollar will continue to drop in value as the U.S. government/FED looks and acts in a more and more socialistic strategy (i.e. acquiring Fannie and Freddie). Its unbelieveable that their egos are so big that they believe they are actually bigger than than the marketplace (the people) itself. The technology age is the Fed’s worst enemy as it seems to give them the absolute (short-term) power of printing their own paper at inconceiveable speeds and levels. At this rate, the dollar will eventually become an unacceptable paper currency in the global marketplace as the government officially becomes bankrupt (more liablilities than assets).

Less consumption for the Western world will become a certainty out of necessity, but production growth will be solely a function of renewable energy production and manufacturing as well as local trade, especially local food production and distribution. As I said, there is a lot of upside in these changes ahead.

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