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Thursday, April 8, 2010

Already Overheating

Is the economy already showing signs of overheating?
Is there inflation? Is the rate of inflation increasing?
Are there shortages or supply bottlenecks?
Are things selling out?
Is it hard to find qualified employees?

Business and government are both seeking an overheated economy. That is what they want. If the economy is healthy, they complain loudly that there is not enough demand. They demand more stimulus and lower interest rates.

They want the economy to be overheated.
They do not want a healthy economy.

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