Lets understand the U.S. economy (credit, interest, money, analysis)

[Wild Style]

We have a lot of talk here about the U.S. economy and its underlying fundamentals. The sad fact is, a lot of us still don't grasp the BIG picture in all of this. I mean to say, how did we get here, what caused all of this and what needs to be done moving forward. This information also ties into why gas prices are so high (well partly so, there is also a supply and demand factor and a tiny speculative factor).

Anyway, I read a amazing article about all of this today. It is a interview with a former Fed worker (he is a economist). It lays it all out in detail and it is well worth the read. A lot of us talk about this "tough medicine" our society needs to take in order to become re balanced but I don't think a lot of us really grasp what comes with that. Extremely high unemployment, diminished purchasing power, decline or stagnation in asset values.

if you have 10/20 minutes this is well worth the read

link

P.S.

Article gives a shout out to my favorite economist right now Nourel Roubini!

[bale002]

Great interview, but how is Mr Alford's analysis any different than what many of us have been saying, in more or less technical language, over the past year or two, even in threads started just yesterday?

If Ron Paul were president, Mr Alford would be appointed Fed governor with its mandate changed from manipulating interest rates to maintain full employment to regulating credit issuance and maintaining price stability.

Translation for those who do not understand economic jargon:

"Don't get high on the money supply: we've got a bunch of "coke" heads running monetary policy in this country."

Good luck in detox!

[Wild Style]

^^

Your right, its been said many times. But its more "believable" when someone in the biz says it and far more technically than whats been laid out here.