Thursday, January 22, 2009
We're All Gonna Be Millionaires!
And broke...at the same time! Another prediction: in 5 years time, even baggage boys at the grocery store will be making 6 figures, minimum. But they'll still be poor. Time to check in on the AMB once again: We can see that it is still shooting up dramatically. This is inflation folks. Insane, insane inflation. If you hear anybody talking about deflation, show them this graph. This is the stimulus we keep hearing about. It is a very, very bad thing. The dollar is dead. The poison has been taken. The body just hasn't finished twitching yet. It is now starting to show up in M1: Not quite the same percentage growth (18% vs. >100%), but once lending starts up again, you can expect nosebleed inflation, until the dollar finally collapses into worthlessness in some year's time. It's not going to be pretty. This is fall-of-Rome stuff if you ask me. So, the good news: if you can keep your job, you'll probably be getting a raise. Lots of raises. The bad news: you're going to be broke, no matter what. Your savings and retirement will be wiped out. Thanks to the inflation, you will not be able to accumulate more easily. You will have no choice now but to work for your entire life. Probably. Or the entire system could collapse into anarchy and you will die of starvation, gunshot wounds, some gruesome disease or the like associated with such calamities. If you survive, you'll probably be a subsistence farmer. That's the name of the game folks: work till you die. Poor and miserable.