Wonder why the stock markets are tanking today bespite a $41 billion inflationary injection by the Fed?
Well – this is what official U.S. economic numbers are about: Inflation was low because oil prices surged
The above is not an Onion piece but a well-founded explanation of ‘serious’ official U.S. ‘economy numbers.’
Yesterday we learned that U.S. growth was 3.9 percent and inflation down to 0.8%. But the same day these good numbers made the Fed to cut its interest rates? "Who do you believe – me or your lying eyes."
Today some economy blogger found out that Maybe the Real Reason for the SIV Rescue Plan was to save Citibank from going belly up.
Welcome to the club. I wrote about the Citigroup Bailout via the SIV plan and included the likely ‘belly up’ scenario two weeks ago. Why does it take people so long to catch up on the plain obvious?
In the big picture the bailout for the rich is running via the Fed induced inflation: Rising Prices Widen Gap Between Rich and Poor
Although higher prices also mean higher wages and salaries, the tax authorities are the first to benefit from the incremental earnings — but not when it comes to high earners. Not much changes for those who have already reached the highest tax bracket, while everyone else is affected by what is known as cold progression: the marginal tax rate changes with each additional euro in income, resulting in a more uneven distribution of the tax burden.
The scenario I see gets worse each day. ‘You ain’t seen nothing yet,’ is the tune I can’t get out of my head right now. If you thing the great depression was an impressive show, this downturn will leave you staggered.
Get out of the markets, stocks, US$s and variably mortgaged housing, while you can.