< HOME  Sunday, March 12, 2006

Train Wreck of the Week

Here's an excerpt from an excellent article by Bob Chapman from the International Forecaster.com:
We are on the verge of the greatest inflationary binge in history. Our perceived wealth is the manifestation of one of the greatest misallocation of created assets and as such its existence will have profound ramifications. [emphasis and link added]

Our society, world society, has inflated expectations based upon financial leverage and useless credit. Our asset inflation and bubbles have created unsound distortions driven by unsound incentives. [emphasis and link added]

Due to this our capitalistic system is in extreme danger. Speculative market dynamics have fueled our economy for many years in spite of our knowledge that previous journeys into this realm have ended in financial tears and at deplorable social cost.
Hattip to WRH.


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