Soros: U.S. Facing Depression, Bush Clueless
Billionaire George Soros is much smarter than I, so if you happen to think my thoughts are a little off kilter, maybe you will believe George...
(Note: My thoughts differ somewhat from those of George, as I still think we're going to experience hyperinflation before a depression or possibly simultaneous hyperinflation & Deflation -- but my bets are (with fed policy/monetization and printer action) inflation will trump deflation until ~ 2010-12--when Depression finally hits us hard)
U.S. Facing Depression, Bush Clueless
A new book by billionaire investor George Soros warns that the U.S. is suffering the worst financial crisis since the Great Depression — and the Bush administration is in the dark about how to deal with it.
“The United States is facing both a recession and a flight from the dollar. The decline in housing prices, the weight of accumulated household debt, and the losses and uncertainties in the banking system threaten to push the economy into a self-reinforcing decline…
“We are in the midst of the worst financial crisis since the 1930s.”
Measures to combat the financial decline increase the supply of dollars, while “at the same time, the flight from the dollar has set up inflationary pressures through higher energy, commodity, and food prices,” Soros writes.