Deflation TO BE OR NOT TO BE

Read complete Arstrong Essay here

Martin A Armstrongs thought provoking essay....from the hole. "we better find a BOULDER not a rock to hide under...."

We live in very complicated times, so it will take much effort to get some handle on what has happened and what MIGHT happen. Part of that effort comes from reading, especially pieces that make you think. You cannot afford to go ignorant into the night.

Armstrong says no REPEAT of 1929 style Depression, but he doesn't say road ahead will be easy, perhaps he suggests it might be paved with gold...

At near $14 TRILLION (with a "T") in debts, the US is head closer and closer to a yearly SHORTFALL of near $2 T !!! With the world economies weak, WHO will lend us our ever increasing borrowing needs? And you can see, the US will NEVER be able to pay off its debts.....we will be lucky to just pay the interest, which for now (THE RATE) is historically LOW.

Unemployment stress is comig from the local and state levels as they downsize to come in line with the tax and revenue stream....but don't expect your property taxes to come down....those getting HIKES in 2007 (3 yr phase in to 2010) will not see relief next tax asessment.

WHY LOW RATES HURTING NOT HELPING? No returns on savings, more are saving.

WHY LOW RATES DONT LEAD TO HUGE REFI BOOM? because unlike before, housing values NO longer SUPPORT increased valuations. SO Like a mirage of water to a man dying of thirst in the desert, MOST DO NOT QUALIFY because of loss of home equity BELOW THE ORIGINAL VALUE of the home....the LOW LOW RATES sit there teasing....but out of reach.

D