Thursday, May 28, 2009
GM to announce 14 plant closures Monday
If you want to get rich, stock up on used cars now!
Shrinking the productive capacity of a nation to produce the real assets that a growing society needs is absolutely insane policy. This will do far more to exacerbate and sustain long-term inflation than the Fed's reserve build, which in fact, has zero direct influence on inflation. No, I take that back...an expansion in reserves tied to a policy of reducing interest rates to near zero is actually deflationary, not inflationary.
But downsizing a nation's ability to produce the real capital that every society needs will ensure shortages and higher prices in the future. That's is like signing a law mandating a lower standard of living for every citizen and future generations of citizens!
Even more outrageous is the fact that Obama and his team seem absolutely determined to sustain the financial sector in its current form--a form that carries inherent volatility and risk--but adds no real value to the economy.
All from a president who promised to "help the working class." It's bizarre!!
If you want to get rich, stock up on used cars now. It'll be the best speculation you ever did.