Are you ready for some GREAT news about the near-term economy?

Question

http://www.marketoracle.co.uk/Article5509.html

Here it is: Your next meal is still affordable.

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Answer 1

Very good article. The disastrous results of letting financial institutions give out loans without being financially responsible if they failed is an unmitigated disaster. Since they essentially sold the loans to 3rd parties and no longer had to worry about whether or not they would be paid back since they had already got their money plus interest they just kept rolling out easy credit to do it all over again. They just continued doing this until it was untenable and the financial market had a meltdown. The 3rd parties that bought the loans will be the ones left holding the bag which is unfortunately a big part of many hedge funds which are investment vehicles for pension funds and other portfolios. Meaning many middle class may not have quite the nest egg they were hoping for,

The only potential benefit of this disaster is that people may potentially see that economic systems based on debt do not work and turn to an asset based economy instead. The sad part is that the people who exploited this situation do not realize that they do not exist in a vacuum and that middle class and an economy is needed in order to enjoy having money.

Any actions towards Iran at this time would be economic suicide as it would drive energy prices into the stratosphere also any policies not aimed at stopping inflation are also economic suicide as the  money supply will tighten even more when interest rates are below inflation causing a net loss for banks that lend money and leading to hyperinflation. Raising interest rates to combat inflation will cause high unemployment and hard times for a few years leading to corrections  whereas low interest rates would lead to hyperinflation which would not be quite so pretty for many years to come. Mexico and Argenta as a case in point.