I'll provide a link to the video in a few moments..
But this morning I heard former assistant treasury secretary Kashkari say..
"While we are looking for a new engine of economic growth"
This should be a warning to everyone..
I would rephrase that sentence to say..
"While we are [desperately] looking for a new engine of economic growth [with which to blow the next bubble]"
You can find the quote at 6 minutes 22 seconds into this video on CNBC
Do we really need a new bubble to drive credit / debt expansion further?
We currently have the healthcare industry, including insurance companies, who have created such a huge bubble that no normal citizen of the United States can any longer afford the services they offer. Hence we end up with the POTUS passing new laws mandating consumer spending for same services. Like so many other industries they seem to be consciously destroying their own customer base, pricing themselves right out of business.
We have commodity bubbles with gas projected to be as high as $4.50 a gallon by June of 2012.
This because the Federal Reserve is handing out FREE fiat to Too Big To Fail banks and Primary Dealers, you know, like MF Global, with which to buy commodities, while also intentionally devaluing the dollar.
The politicians in Washington act as if there is little we can do about high gas prices.. Bullshit.. The politicians merely run cover for the Federal Reserve. It's a tax, it's all a tax. The Federal Reserve has complete control over the value of our fiat currency, that's why we HAVE a fiat currency by decree. So it can be manipulated by the Federal Reserve Bank.
Any time consumer spending threatens to drop off and affect corporate profits the Federal Reserve Bank, with the blessings of congress, can simply FORCE higher consumer spending by intentionally creating inflation.
Utilities, student loans, credit cards, sub-prime lending.. Everything about this economy is dependent upon bubbles, exponetial credit expansion forever..
So I would say to Mr. Kashkari, Thank you.. but we have enough "engines of growth" or "bubbles" as it is.. I, for one, don't think we should be desperately searching for a new one.