This article by Chris Martenson is at the core of Obama's,and Harper's economic policy. Pretend that the debt that exists on bank balance sheets and in the books of corporate America, doesn't exist.
This is the foundation upon which the present stock market rally, and all the talk about greens shoots exists. If you have investments in the stock market, they are dependent upon everyone continuing to pretend that all is well. What happens when the pretending stops? Recall that insiders have been outselling outsiders 30 to one over the last months. What happens when the rush to the exits starts? When the herd senses danger. The brokers will probably get out. The big players. The insiders. But what about you, and your measley mutual funds stuck in an RRSP. Think you'll get out in time? Pretend. Pretend you have money in your bank account. Pretend. Pretend your credit cards have zero balances. Pretend. Pretend it all isn't about to come crashing down. Feel better? Peacenik doesn't.
by Mish Shedlock
Numerous people have asked me to comment on Chris Martenson's article The Sound of One Hand Clapping - What Deflationists May Be Missing.
Chris Writes:
The hot topic of the day is "Inflation or Deflation?" and the camps are firmly divided into groups of inflationistas and deflationistas. When asked which camp I am in, I reply "Yes." Some would say that puts me in the confusionista camp, but I actually have an explanation for why are living in a world encompassing both.
From a technical perspective, we are absolutely in one of the most powerfully deflationary periods in history, yet, besides housing prices and a few over-produced consumer goods, we find that stocks, bonds, and commodities are all well-bid at the moment.
Read on...
