'Intelligent discontent is the mainspring of civilization.' -- Eugene V. Debs

Friday, December 05, 2008


And these reported job losses for the month of November will most certainly be revised upward, just as the losses for October (from 240,000 to 320,000), September (284,000 to 403,000) and August (159,000 to 284,000) have been. The US economy is in free fall, and my guess is that the Consumer Price Index for November will show another month of deflation to go along with the 1% decline in October.

In other words, deflation is here, with its accompanying mass unemployment, business bankruptcies and declining asset values across the board. One struggles to comprehend how it is going to be suppressed as the credit card industry proceeds with a remorseless contraction of available credit card liquidity, potentially as much as 45% over the next 18 months. Jean-Baptiste Say is in for a rude awakening.

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