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For those watching this economy. Who have seen 22% and 44% returns this past year. This may be when we take the economy off its drugs and let it start healing. This is when we start to learn how extensive the damage was. What everyone should be asking is whether January was when economics starts taking revenge. And how extensive that 'revenge' will be for spending on things such as "Mission Accomplished" and a 40% price protection to big Pharma.
We know we will have to pay for the 2000s. We just do not know how much, and in what form that economic revenge will appear. Inflation, dropping dollar, massive unemployment, stagflation, real estate devaluations, bankruptcies, 20% interest rates (which Volker and Carter's administration instituted to solve problems back then), or massive capital sales of America to foreigners. Examples of how economics may take revenge.
We know it must happen. We just do not know how severe and by which processes.
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