Comments and observations on social and political trends and events.

Saturday, May 29, 2010

A Busted Formula By: Eric Sprott & David Franklin

This analysis by Eric Sprott shows the folly of relying on government bail outs to "stimulate" our way out of the recession. As he concludes,

The key point to remember with bailouts and stimulus is that it’s ultimately your money that the government is spending – and your children’s money. The numbers strongly suggest that your money isn’t being spent wisely. We need real jobs and real growth, not bigger, more leveraged banks. The market isn’t oblivious – it can see what’s happening. Gold’s recent strength in lieu of seemingly ‘deflationary’ economic data confirms the market’s doubts over government intervention in the financial system.

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