Wake-Up Call - 07/19/10

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[Lancelot]

I enjoy your commentaries and agree with most of your views on the economy however I must take issue with you on two points which you constantly reiterate. Firstly it is not true to say that we are currently experiencing a deflationary period in the economy due to the collapse of the financial systyem and a recession. This perspective does not accknowledge the hyperinflationary debt bubble albeit sitting ontop of a shrinking production base. Additionally, I suspect that you do not go to the supermarket. Prices are rising there and thats a fact. I understand that in areas like housing costs are down but health care, tuition, bus fares, land taxes, utility costs are all higher.
My other bone of contention is your weak analysis of the social security program. For decades social security collected more money in payroll taxes than it paid out in benifits-billions more each year. The problem is that the government has borrowed the money and replaced it with IOUs. Nothwithstanding, the program is still viable until 2037 and can MAKE MOST OF THE PAYMENTS for a substantial period after that. Dont knock social security, criticize all the wars and hugh military expenditures and the bank bailouts.