Most of us realize that the O’bama administration does not understand wealth creation… In an article entitled “Why Stagflation is coming”, the authors share their thoughts on the prospects for economic recovery:
Both the money supply and federal spending have increased at breathtaking rates over the past year, unprecedented in peacetime. The policy decisions made by the Federal Reserve Board and Congress virtually assure we will enter a period of 1970s-like stagflation…
2009 federal outlays were $3,938 billion compared to $2,983 billion in fiscal 2008 – a 34 percent increase in one year. Federal spending has grown from 21 percent to 28.1 percent of gross domestic product in only one year. Only during the last three years of World War II has federal spending been a larger share of the economy…
An economic train wreck is coming. Its cause is simple and straightforward: the breathtakingly bad monetary and fiscal policy during the past six to nine months – in other words, too much money and too much federal spending.