Once again, the original Bifurcated Reflation post. . . it’s been quite a bit longer than a month!

http://quotes.ino.com/chart/?s=NYBOT_DX

Now what can hold the demand still? Look again and judge for yourself.

One month does not trend make, but it certainly points in the direction of commodity inflation coupled with real wage deflation. Not good.

Producer Prices in U.S. Climbed More Than Forecast (Update2)

http://www.bloomberg.com/apps/news?pid=20601087&sid=aaL4qCCNdhAQ&pos=2

The only counterargument I ever heard was that the US banking system is too big for history to apply. Maybe there are better arguments against it, but certainly no one brought them up at the time.

A better analogy would be two different systems achieving the same result, such as say purifying water via distillation vs. purifying water via reverse osmosis. The end result is the same, the mechanisms and system used to arrive there are different. Hence, my statement (admittedly a nonscientific one, as I was using a colloquialism, not claiming a scientific theory) is in fact stating that we are getting the same result from the current administration of one party that we would have gotten from the other party. In the end, the regular working stiff is gonna get screwed over no matter which party is in office.

Oh but not to worry. They will balance the budget with a new value added tax that will be applied on top of the higher prices that are paid for basic necessities. But this will keep income taxes low and that will create jobs. (Not going to end well)

I wonder what the chances are that we are creating our own disaffected youth problem just like what has happened in the Middle East. A decade from now might be very interesting.

That’s very unscientific. You can get the same apparent results from two different states. Think high tide and low tide. Or sunset and sunrise. In a camera snapshot, they are indistinguishable.

Pardon the simplification…

The right says “smaller gov’t”… “starve the beast”… lower taxes aka don’t distribute a portion of what I earn to “others” (under the assumption that the “others” are unwilling or unable to provide for themselves and that they themselves have truly “earned” anything). Reward those who have succeeded in taking advantage of the opportunity inherent in being an American.

The left says gov’t is the answer when citizens fail themselves or one another. Step in, provide, make the free for all fair, balance the scales. Make sure it appears as if everyone has the chance to take advantage of the opportunity inherent in being an American.

The constitution was written for a country that traveled its subsequent path of “freedom” on the skeletons of millions of workers of the lowest possible wage.

These are concepts, concocted by the human mind. But like all such concoctions they will never be what they are meant to be because humans must apply them, carry them out. There is no final, pristine product, there never will be.

Humans aren’t capable of capitalism as they define it, they aren’t capable of socialism as they define it, of anything they define. Only something that resembles it after they’ve wielded it however they could, to whatever effect their political or financial position in society allows.

Which brings us to now. Pardon the simplification, but we’re about to find out what America does when it finds out all of that crap they came to “value” as Americans ain’t comin’ back. How will they respond to this concept? What will they wield?

I have no expectations beyond what I anticipate I will do, whether it be exceptional or routine. That is all I truly have.

We’re gonna be a third world country of poor unfed masses as the banks use all that capital to “shore up the financial system” ie, line their own pockets and assure the failure of the mega elite does not occur.

As much money as they are throwing around, it doesn’t seem to be making life any easier for us little folks. See:
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aBYSp0.XfXZs

Bifurcated reflation anybody?

And the world turns and the beat goes on. I’m starting to hope that 2012 Doomsday theory is true.