I just read about these tax rebates for $600 to $1200.
Where does this money come from? The Treasury. A few years ago, we had those $300 checks sent out to people to buy Crocs shoes for their kids, Apple Ipods, etc. What is this obsession with keeping people spending their money? Americans already spend enough money. They need to start saving! There was a gigantic debt bubble and the only way out is lower the amount of debt outstanding, not pump more money into the system.
The Fed and the government have almost as much monetary discipline as Zimbabwe. Keeping rates this low with high inflation is begging for a dollar devaluation. The market will keep obliging. The yen will hit 80 on the dollar before the smoke clears.
Where does this money come from? The Treasury. A few years ago, we had those $300 checks sent out to people to buy Crocs shoes for their kids, Apple Ipods, etc. What is this obsession with keeping people spending their money? Americans already spend enough money. They need to start saving! There was a gigantic debt bubble and the only way out is lower the amount of debt outstanding, not pump more money into the system.
The Fed and the government have almost as much monetary discipline as Zimbabwe. Keeping rates this low with high inflation is begging for a dollar devaluation. The market will keep obliging. The yen will hit 80 on the dollar before the smoke clears.
