China's Raising Prices, US Prints More Money

Anyone who supports Obama has no right to cry about Reagan's deficits

“The President's own budget documents project as well that by next year more debt will be run up in one term under President Obama than under all other Presidents in history -- from George Washington to George Bush -- combined.” (Peter Ferrara – A Big Question)

Pimco, the largest bond fund in the world, announced it will no longer buy US debt.  Pimco founder William H. Gross explains why...

Unless entitlements are substantially reformed, the U.S. will likely default on its debt; not in conventional ways, but via inflation, currency devaluation and low to negative real interest rates. (Pimco – Skunked)

That 70's Show:  Stagflation!

This was not America's worst recession, but it is the worst recovery.  Following closely on the heels of economic stagnation comes inflation.

Communist China can’t rely on slave labor forever.  The peasants have caught a whiff of prosperity and they want more. China's Communist Politburo is raising wages, and we're printing more money.  This is a silent tax, we all pay more for everything.

Even worse, our government allows China to blatantly manipulate its currency, putting our domestic manufacturers at a competitive disadvantage. This would be much harder for them to do if we did not need to borrow money from them.

Anyone who frequents local shops and restaurants already knows that mom and pop can no longer hold the line.  Prices are going up...

Still reeling from the recession, most mom-and-pop shops have held off on raising prices for fear of losing more customers. But business is finally starting to pick up, and after years of being squeezed by cost increases, a growing number of small businesses are hiking their prices.

"They've been squeezed so badly for the last two years, any uptick in demand means they're going to try to raise prices a bit," said William Dennis, senior research fellow with the National Federation of Independent Business. (CNN – Inflation Pressures Grow on Mainstreet)

Walmart to the Rescue

In the face of this economic misery, retail giant Walmart will fight heroically to continue to bring us low-priced goods. Imagine if there were no Walmart or other big box giants, and instead our nation was dotted with scattered and sundry mom and pops. They could not marshal the bargaining power of a Walmart or Target, nor the supply chain efficiencies. We’d be paying frightfully more for everything!

Just as John D. Rockerfeller brought cheap kerosene to the masses, big chain retailers help shield us from the stupid policies of our government.  We should outsource the federal government to Walmart.