Concentric Contraction...Revisited.....
November 02, 2010
– Comments (7)
As we continue down the destroy the dollar policy....as an IMPORT based nation we are EXPORTING inflation.....the cost of commodities are skyrocketing as the dollar collapses.
The primary areas reflected in commodity price increases is FOOD and FUEL.....and since the printed dollars are NOT repatriating back to America....incomes are falling as business revenues are flat to down.
With lower incomes and higher FOOD and FUEL prices....Americans have less and less money to spend in things like mortgages, health care, and other dicretionary spending.....which is decreasing tax receipts causing further cuts to families incomes.
As international commodity prices rise with American wages decreasing, a greater and greater percentage of Americans incomes will be focused on FOOD and FUEL as less and less is available to service debt and other areas......
I know we grow a lot of food...but we grow that food with fertilizer which requiers commodity inputs and that food must be transported with commodity inputs, and packaged with commodity inputs....
as the prices continue to rise due to the devaluation of the money....and wages collapse because relatively few of our exported dollars are returning to America.....at some point....the vast majority of Americans incomes will be centered around Food and Fuel and very little for anything else.
With 50 million on Food Stamps, 60 million on Social Security, and 20 million.....the need to print to feed will only increase.......which will drive down the value further.....
and we havn't even addressed deficits, pension obligations, and entitlement issues yet......
It is why it is so easy for me to predict rising unemployment, rising defaults, and crashing wages.....as more and more are forced to spend for food and fuel.....they will have less and less for anything else.
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