I've read Jim Sinclair before.
The dollar may be the last man standing, but it only has to be marginally better than the next in line to be viewed as the best of the worst in the race to the bottom.
I am somewhat in agreement with the timeframe on the bubble chart.
"The few who understand the system, will either be so interested from it's profits or so dependant on it's favors, that there will be no opposition from that class." — Rothschild Brothers of London, 1863
"Give me control of a nation's money and I care not who makes it's laws" — Mayer Amschel Bauer Rothschild
"This [Federal Reserve Act] establishes the most gigantic trust on earth. When the President [Wilson} signs this bill, the invisible government of the monetary power will be legalized....the worst legislative crime of the ages is perpetrated by this banking and currency bill." — Charles A. Lindbergh, Sr. , 1913
"From now on, depressions will be scientifically created." — Congressman Charles A. Lindbergh Sr. , 1913
Maybe I should just give in and look out for my own interest with zero regard For the country and just vote for the Reps - the party of deflation - this fall and quit being a throw back to a long gone time.
That part you said about people starting new businesses? That will be the next big thing.
Its already happening! There are two broad types:
1) those who will buy franschises and look for safety and reliability
2) those who will follow their passion - anything from hot air balloon companies to adventure vacations to treasure hunting to, ahem, cuisine and wine and such.
Frnchised start ups are already in stealth boom mode.
Small cities w character will be destinations as people pull out of the behemoth job center cities to return home and start up their own thing.
The key is to keep deflation from setting in till demand returns.
Ideally we would also have fiscal measures to spur demand but that lever was locked off in Nov 2010.
There is one group who benefit from deflation.
Those with escape velocity balance sheets not depending on business or labor for income. Deflation is great in this case.
Say 10 million plus if you are modest and have no dynastic impulse.
Right - deflation kept at bay by Fed easing policies and federal gov't spending only. More easing or asset purchases will be good in the short run, but the consequences IMHO will be devastating in the mid to long run UNLESS governments (at all levels) slash red tape and encouage businesses to expand, people to start a business, and conditions that facillitate exports. If we can't grow our way out of the hole then the walls of the hole will collapse sooner than later.
Yes. Without Fed intervention we would have falling prices as opposed to stable ones. That is a whole separate debate about bunk signals being telegraphed, and the decisions made by investors based on them, and whether this is a good thing or not.