To Samuel Clemens and His Responses to My Post
S.C., Regarding your comments on inflation: Inflation is a fact of life. I agree printing vast amounts of currency reduces the value of that currency. On the surface that is a bad thing. That aside, I watch the dollar in relationship to other currencies as my guide. All things considered the dollar has held up pretty well.
We are still the country with the safest bet for investments. China with all the positve press on their economy isn't close to the size or complexity of our economy not to forget their not addressing environmental concerns, paying labor at slave levels, and the brutality of the Chinese regime. Whenever people are told to stand up and wave flags when their leader visits - lookout! I remember those events when I lived in the Philippines. Mr. and Mrs. Marcos loved demonstrations for their benefit. If that is only an opinion, you need to do some reading. I read somewhere that if you added all the european nations together including Asian countries (possibly excluding Germany) they wouldn't come close to our GNP.
Again, on the dollar issue, better to print and inflate for debts have to be paid and the industries which uplifts the middleclass with jobs must be protected. It would be a disaster if we defaulted on our debt. Berneke is correct on how he is manageing things considering the problems. I fully supported the bailouts. Many companies have paid back their debt. Imagine if the big three went under. The options were food lines and a depression that would have eclipsed 1929. Was it criminal that banks and financial institutions used it as corporate welfare and enriched salaries and added bonuses- absolutely. Abusers should go to jail.
On gold - it has had a great run but watch it. It got hit hard today and has been extremely eradic for the last quarter. I wouldn't bank on smart money buying gold and that includes smart countries. It is too speculative and unpredictable. Again - look at the dollar - with all the printing and I am hoping to see the bleeding stop - it is holding up. I am not a seer - I base my judgements on past performance. You may disagree with me - that's fine. That's enough for this blog.