The Power of Denial

Denial is hard to fight. The government and many in the media would have you believe that we can spend our way out of this mess. We can't.

The government would have you believe that inflation is better than depression. It isn't.

Stock brokers would like you to believe the market has bottomed. It hasn't.


If I hear the phrase "stimulate consumer spending" again I am going to puke. How the hell do people think this mess was created in the first place?


Unemployment, credit card defaults, more banks failures - eventually the government will run out of $. Well, then they will have to print it, lots of it. That means each of your hard earned dollars will buy less.

Right now the government is in the process of trying to stop a deflationary spiral. They are essentially saying they prefer inflation to deflation, when what we really need is to let the market reallocate resources from spenders to savers. The government simply won't let this happen. So instead we will have inflation. Here is a a brief explanation of deflation & inflation from Wikipedia:

"Deflation is generally regarded negatively, as it is a tax on borrowers and on holders of illiquid assets, which accrues to the benefit of savers and of holders of liquid assets and currency. In this sense it is the opposite of inflation (or in the extreme, hyperinflation), which is a tax on currency holders and lenders (savers) in favor of borrowers and short term consumption. In modern economies, deflation is caused by a collapse in demand (usually brought on by high interest rates), and is associated with recession and (more rarely) long term economic depressions."

What immediately jumps out at me is deflation is usually brought about by high interest rates. But real interest rates are close to zero, and have been held artificially low my the Fed since after 9/11. Something smells fishy. Hence, our government just wants to create more bubbles. I hope the American consumer will wake up and start saving more, paying down debt, and consuming less.

Isn't it ironic that the same leftists that so vilify rampant consumerism are fostering it with their economic policies? Isn't it even more ironic that the "conservatives" that have been in power for the last eight years have done the same thing. Think about it.

The market is having a very big bear market rally. If you were long you got lucky, sell the rip. If you were short & can afford to, stick it out, this market is coming back down. Do I know for sure? Of course I don't. But I believe this is what they call a "fally". (A fake rally caused primarily by short covering.)

Here is a funny article to read:

http://www.minyanville.com/articles/bailout-recession-deregulation/index/a/20072/p/1

Now, hang on, because I am going to totally shift gears. How does all of this doom & gloom fit into Thanksgiving? Well, "A Course in Miracles" says: Giving And Receiving Are One in Truth. So even if you are losing your home, have lost all your money in the stock market, and are truly depressed about the coming depression, here are some things you can give:

Love

Attention

Time

Presence

Understanding

Forgiveness

These things are free last time I checked. However, you cannot find them until you have gotten rid of the Denial that is so powerful in this world. Though physical things are important to our daily survival, you can't even really enjoy them until you realize how unimportant they are. If you can give on the physical level, do that too. If not, remember the "things" listed above are much more valuable than what you have lost.

I hope you all have a wonderful Thanksgiving.