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Windy's prediction of deflation did occur. It's now run it's course. I predicted hyper inflation, which hasn't occurred...yet. I will say that at this point look to the end of March through the end of May time frame for inflation, and interest rates to increase significantly.
Talking heads have proclaimed the Great Recession over. Well, I suppose you can say it's over as long as you overlook the small issue of 20% of the workforce without jobs. You might say that our new economy provides quite nicely for 110 to a 120 million workers. It's just unfortunate that we have 140 million in the work force.
Which brings me to a question or two. How long will unemployment benefits last for the out of work folks? One in eight Americans, and one in four children, are on food stamps. Some six million Americans, according to an article in The Times on Sunday, have said that food stamps were their only income. Can we afford this? When benefits do end, what happens then? Do we just call them lazy and let them live under bridges? Do we watch them starve?
While I'm asking questions, just how do we get into real positive GDP numbers if 20% of our workforce doesn't work? Just how does the new economic math calculate believable numbers?
Lastly, how long with the stock market remain disconnected from the real economy? Is there a major correction looming?
Food for thought.
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Tropic Cat
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