Sunday, February 01, 2009

Stagflation And Inconvenient Debt

We are at the point right now where the increased money supply looks like an increase in real demand. In 12 to 18 months price inflation will kick in. Then all hell will break loose.

Had the money supply been increased by giving the money to profitable producers a lot of the damage would have been averted. But most of the "stimulus" is going to consumers. Very bad move.

I predicted stagflation several months ago. I'm holding to that prediction more than ever. There was a book by economist Robert J. Samuelson, The Great Inflation and Its Aftermath: The Past and Future of American Affluence, describing the period from 1960 to 1982. And how did we finally escape the inflation trap? We elected an economist as President and that President said: goose the producers. Otherwise known as supply side economics. And we have had 30+ years of good production since. All that is about to end. For a while. Maybe a long while if the Democrats stay in power long enough. Without a revolutionary kick to the economy it will take a long time to digest the new mountain of debt.

Why hasn't Polywell Fusion been funded by the Obama administration?
IEC Fusion Technology (Polywell Fusion) Explained

H/T joedead at Talk Polywell

Cross Posted at Classical Values

1 comment:

ZenDraken said...

MSimon: Thanks for finding and posting this. I've done the same on my site.

I think we're headed for the medium to long duration hyperinflation timeline as given here: Hyperinflation Scenarios, which fits in with your 12 to 18 month prediction.

I always figured that debt effectively sucks wealth out of the future. The corallary is that energy pumps wealth back into the future.

Now the future has arrived and the wealth is gone. The way to pump wealth back into the future is to develop new energy sources and let free enterprise take it from there.

So Let's *Hope* (ack!cough!) the Obama adminstration funds the Polywell.