The whole issue of "fiscal cliff" is about a simple truth. The time has come to pay the piper.
We bought stuff. We enjoyed every minute of it. We borrowed from banks - always ready to gives us the money.
Now we have to pay. Now we are realizing we did not save enough to pay for our medical needs. We did not save enough for our retirement.
Now we are realizing the markets want us to pay and we do not have the money. So, we have to pay with lower quality services, a more mundane health care, and less retirement income.
Our wealth was inflated by debt. Now that we have to pay, we are realizing the sad truth. And it is unpleasant, to say the least.
Inflation? I do not know. But it seems difficult to see how 300 million people can generate enough demand to cause prices to rise when they are forced to tighten their belts.
Will then bond prices continue rising?
George Dagnino, PhD Editor,
The Peter Dag Portfolio.
2009 Market Timer of the Year by Timer Digest
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