Bubbles

Derivative Bubble

Trump announces that one of our economic bubbles is about to burst.  I think he is referring to the $300 trillion US Big Bank Derivative Bubble, but he may be referring to other bubbles. Derivatives are bets placed by the big Banks. They are not regulated, but would be bailed out by depositors. 

Stock Market Bubble

Most stock watchers agree that the stock market has a 20% bubble created by the Federal Reserve’s QE printing.  The stock market is already down 10%, but would need to go down another 10% to correct stock prices to reflect real value.  This is based on the global recession that could last for decades.

Inflation Bubble

This was created by the Federal Reserve’s QE printing and it’s 450% increase in the money supply. Alan Greenspan predicts that prices will quadruple when this bubble is unleashed.

Debt Bubble

Most governments are in unsustainable debt as are most consumers. High government spending on mal-investment in public transit, wind, solar and other “green” scams, socialist welfare programs, bad trade agreements, UN Agenda 21 implementation and lack of fiscal responsibility.

Bubble Mitigation

Our bad economy, lower household income and lack of jobs is causing “deflation” and is stalling the inflation bubble.  Consumers simply don’t have the money to absorb higher prices and the dearth of jobs and wage increases will hold consumers back.

In the US, our trade deficit is $736 billion.  If we were able to make these purchases from US based companies, we would have an extra $736 billion for US jobs.  Typically, this is achieved by imposing tariffs on imports, but it would raise the prices of these imports to US consumers.

Stopping excessive immigration will need to happen to increase jobs for US citizens.  Currently we have 100 million working-age US citizens without jobs.  This would result in increases in household income.

Cuts in Federal Spending on unnecessary activities would save $1 trillion a year in wasteful government spending.  This would require closing unconstitutional federal departments, agencies and programs.  It should end UN Agenda 21 implementation and return government to handling basic functions.

All of these actions are overdue, but should be implemented as soon as possible to mitigate the damage these bubbles would cause.

Norb Leahy, Dunwoody GA Tea Party Leader