Re: Re: Tonight: Bargains in the Sun


Lets face it! At least the United States has a huge market economy compared to that of Spain and all that money printing by the Federal Reserve in the form of 85 billion dollars a month in Quantitative Easing that is being used to buy 40 billion dollars in mortgage backed securities and the other 40 billion to buy US treasury bonds is deliberately being done to blow up another housing bubble in the US but the Fed’s stimulus is creating a phoney illusion of economic recovery that is based on debasing the value of the dollar and the housing bubble that is being inflated is so full of holes that it won’t go very far before it collapses again when reality sinks in that the United States is in terrible economic decline.

Rising house prices in the US does not reflect the fact that the US is a “Zombie” economy that is on life-support in which the too-big-to fail banks are being propped up by low interest rates and cheap money from the Federal Reserve which is debasing the value of the dollar. In the US you are continuing to see the destruction of the American middle class, more cities going broke and ending up like Detroit and more high quality jobs disappearing only to be replaced by low paying part-time work serving fries at McDonald’s.

Besides you can argue that the recent rises in house prices in the US is either due to nominal house prices rising or the purchasing power of the dollar falling as a result of all the money printing and the reality is that rising real estate prices in the US is really due to the high inflation as a result of all the money printing by the Fed and is a sure sign that the dollar is losing its purchasing power and becoming a worthless currency.

Despite all the problems that the US has with its disfunctioning economy which is still in a state of collapse regardless of the recent rise in real estate prices the United States is still a huge economy with an enormous service and financial sector whereas in the case of Spain you need a scanning electron microscope to locate where Spain’s economy is located.