In trying to inflate, the Fed will deflate our basic economy(smo

In trying to inflate, the Fed will deflate our basic economy based onconsumption of nonessentials by stoking speculation in commodities andenergy.

This occurring now.

Debt saturation and increasedcosts for housing, food and fuel is curtailing spending in the serviceand retail sectors on which our economy is based.

Since we are anet importer of nonessential goods, our economy has no income. Anysemblance of income has been based on consumer debt inflation. Whenconsumer debt becomes saturated, any attempt at monetary inflation bythe authorities merely inflates asset prices in existing bubbles in thefinancial sector.

The resulting increases in the costs for foodand fuel acts as a tax on consumers which inhibits the spending whichsupports consumption.

As unemployment rises and business closeeven consumption of food and fuel will diminish thereby puttingdownward pressure on those prices.

Since we have neverexperienced debt saturation in our lifetimes, it is difficult tounderstand how more monetary inflation will no longer support theeconomy and instead will diminish its capacity to grow.

Too manyeconomic pundits have too many charts and numbers rolling around intheir heads to look around and see what is actually occurring in theirown communities.

Charts and numbers only work during the debt inflation cycle.

After that it's hold on for dear life.