A picture of deflation


In an economy that is 80% sustained by the consumer, when the consumer disappears, so does the economy.

As the economy disappears, unemployment soars thus social costs soar. BUT, as the economy disappears and social costs surge, TAX REVENUE DWINDLES.

As we bail out banks and companies, as social costs soar and as we expand our military effort, where is the money going to come from if the tax base is disappearing?

And if social expenditure is curtailed at the same time that the power elite is caught in scandal after scandal, how long till the masses revolt?

World war by 2013/2015


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3 Responses to “A picture of deflation”

  1. David W. Lincoln Says:

    This also ties in about bad judgment, http://network.nationalpost.com/np/blogs/fullcomment/archive/2009/12/07/edward-rutherfurd-new-york-gone-soft.aspx

  2. David W. Lincoln Says:

    This, http://www.timesonline.co.uk/tol/news/world/middle_east/article6945283.ece ties in with your earlier entry about Dubai.

    I think it was in “The Game of our lives” by Peter Gzowski that we find this statement, “Bad judgment overcomes good planning”.

    I will check to see if it is the case.

  3. David W. Lincoln Says:

    I’m still hopeful, Guido, that regardless of the outcome of Copenhagen, governments in exile, will crop up in the countries most responsible for the current fiat monetary system, and whose leaders are most afflicted with selective vision regarding the climate.

    For, what legitimacy can these governments claim? Just because people voted for them in the most recent elections in their countries, is no longer good enough by itself.

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