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| by Charles Hugh Smith | The Devolution of the Consumer Economy (April 6, 2011)
The U.S. transformed into consumer economy that is exquisitely sensitive to debt and the costs of servicing credit. In other words: the bill is finally due, Baby. |
Everyone who is currently confident in high-inflation-hyperinflation is recommending buying tangible assets. Perhaps that should be narrowed somewhat to
tangible assets with a positive return on investment. It seems very likely that the U.S. will be awash in surplus boats, yachts, cars, trucks, houses, exercise machines, etc., as the "owners" (if you bought on credit, and it's now worth less than you owe, then what do you own?) will no longer be able to pay the slip fees, registration fees, insurance premiums, mortgages, property taxes, storage unit fees, etc.
No, conventional economics, demand is not insatiable or permanent, and neither is credit expansion.
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Comment: We may well see a glut of things that we do not need which are being offered without finding buyers along with extreme scarcety and high prices for the things we need.
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