Econopost

November 14, 2008

Among the various changes this week, money supply, debt, deficit and dollar exchange value rose significantly. The money supply, debt, and deficit increases helped boost the market's viability. However, the increase in the dollar's exchange value killed the market's rebound. Investors holding cash will not buy bonds or stocks while the dollar's exchange value is rising. Once the dismal economists and financiers, who practice the dismal science of economics, comprehend that investors minimize risks, the dollar's value will decline and the markets will resume their inflationary rise.

Fear abounds that we are headed for a depression. With employment over 47% of population, a depression is impossible unless the Shlowmo McDismals are determined to have one. The biggest threat to our economy is inflation from the extremely high federal budget deficit and debt.