Sunday, March 20, 2005

NO INFLATION?

Property taxes.....up 30 to 50% (3 yr phase in)

Health Care UP UP and away
Energy..nuff said
Building materials WAY up.
COST of a home up near 100% in 5 years (not all areas)

But if INFLATION is too MUCH money chasing TO FEW GOODS, we have none! we have SLACK in manufaturing and have added TONS overseas! WE ARE flooded WITH PRODUCT FOR CONSUMPTION. *(cept demand for steel and commodities from China inflationary)

What we don;t have is SAVINGS, and so we have Capital degredation...lack of direct investment.We depend on GOV spending/borrowings to keep us out of Recession, but GOV spending is a debt we must all pay....it is destructive, it takes away from private sector spending and investment.

We are near a point of TAX HIKES and entitlement cuts.We are BEYOND any previous CRDIT EXPANSION, and THIS time it has been almost totally for CONSUMPTION>LOW LOW interest rates have come at a dear cost.....and we are all screwed next time around it is apparent to even the brain dead something is terribly wrong.Investing LONG in a rate HIKE environment where DEBT is at historic highs.....well it seems like not so good an idea.

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