Recession Over?
Apparently so, for a survey of economists who believe Ben Bernanke should stay as US Federal Reserve chairman. Hmmm, perhaps Alan Greenspan should run for President. The recession is only over to the extent that the depression hasn't begun. In truth though, I do forsee the possibility for an interim period were we crest another sentiment wave before beginning a downward turn.
May no mistake, from a personal perspective I wish it was over! I have no personal interest in living through a depression. The sad truth is that the United States, as per our previous post, remains insolvent. As long as its creditors continue to provide unlimited finance to its unlimited deficits, this charade will continue. History may determine in retrospect that the U.S. was already well beyond its capacity to service or repay its debt.
As I have said before these are still the good times for the United States and the rest of the world. A U.S. debt default de jure, or de facto (high inflation/low currency), will be catastrophic. While it is not necessarily imminent, when it happens, it may occur very quickly indeed.
May no mistake, from a personal perspective I wish it was over! I have no personal interest in living through a depression. The sad truth is that the United States, as per our previous post, remains insolvent. As long as its creditors continue to provide unlimited finance to its unlimited deficits, this charade will continue. History may determine in retrospect that the U.S. was already well beyond its capacity to service or repay its debt.
As I have said before these are still the good times for the United States and the rest of the world. A U.S. debt default de jure, or de facto (high inflation/low currency), will be catastrophic. While it is not necessarily imminent, when it happens, it may occur very quickly indeed.
Let's all hope that unlike August 2004 this time I'm completely wrong. I surely do.
posted by Peter at 12:58 pm
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