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May 12, 2011 / 74

Discontinuing WSJ Subscription

Yep. Like the title says, I’m allowing my WSJ sub to expire. Why? Because of garbage like this…

On page C1 is a little feature called “Ahead of the Tape”. Today under the headline, “Stagnation Worries Top Those on Inflation” by someone named “Kelly Evans” who, after dancing with numbers for a bit, opines that said numbers “suggests investors today pretty much agree with Federal Reserve Chairman Ben Bernanke’s assertion that the recent rise in commodities prices will provide only a fleeting boost to inflation.”

Then after throwing out some diverse and possibly unrelated stuff, she finishes up with this gem. “The story markets are telling on this score doesn’t feature an inflationary villain – but the specter of economic stagnation.”

So the inflation that Bungling Ben Bernanke (BBB) has been saying isn’t there will now only have a fleeting affect. And the bond investors are more worried by a stagnant economy. (I’m sure glad I don’t have any money entrusted to the “bond investors” referred to.)

Well…. folks… how do you feel about having BOTH at the same time? It’s a little thing called “stagflation.”

Now, if you are a Keynesian, you can go back to sleep since I’ve heard that in the Keynesian world there’s no such thing as stagflation. BBB is a Keynesian. And stagflation is a very real possibility, especially given that BBB has been lying his buns off about the inflation being experienced by the USD.

But the main monster in the closet is that EITHER inflation OR a stagnant economy LEFT UN-DEALT WITH WILL END UP AT THE SAME DESTINATION!!! Hyper inflation – Zimbabwe. Cholera and starvation anyone? Stagnant economy – Some Japanese economy with your lunch? Will you be having noodles with your small scoop of rice? and you’ll be ordering the same thing for twenty years?

How to deal with BOTH issues? Get the government the hell out of our daily lives, and revisit the appropriate financial regulation, aka Glass-Steagall, as enacted by the FDR Congress in 1933. You are in the BEGINNING stages of a huge Financial Recession (aka depression). The ONLY way to fix a Financial Recession is to fix the lacking or inappropriate financial regulation, which lack of appropriate regulation is what CAUSED it. (Economic/Business Cycle Recessions fix themselves if left alone.)

Too bad the people running our economy have NO clue as to what they are doing – because so far everything they’ve done is wrong.

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