TERRITORIALITY

"This is a pattern of boundaries imposed on something by individual decision or group agreement. That means an individual or group can decide or agree to change a pattern. The pattern itself is established by a set of rules that define the pattern, so changing the pattern is done by changing the rules." Said King.

So what if the group (The FED) is wrong?

What is inflation?

-) The demand for stuff will out-pace the capacity to produce it. The price goes up. This is called Demand-Pull inflation.
-) The price of goods and services that rely on oil goes up. This is called Cost-Push inflation.
-) Workers push for higher wages to offset the expected inflation. Employers pass on the higher wage costs to the consumer. The price of stuff goes up and inflation occurs. This is called Built-in inflation.

Any of this sound familiar? Most investors have never "invested" in this type of environment.

Bonds have gone through a crash the past two weeks. Has the media correctly reported it? They say it is because of economic strength. The real reason is that Mr. Market is preparing for what the new congress will tell them in January.....and the public is not going to like what it hears.....Maybe $4,000,000,000,000 of new debt will have to be sold in 2011....any buyers?
QE/4 will be the bail out of the states by wdc, llc.

The NYT's had an interesting "Budget Puzzle: You Fix The (National) Budget"

Highlights: Cut foreign aid, eliminate earmarks, eliminate farm subsidies, cut pay of civil workers, reduce the federal work force, cut federal contractors, cut aid to states, reduce 0space spending and weapons, reduce the military, reduce commitments to the wars in the ME, enact malpractice reform, increase Medicare eligibility age to 70, raise SS retirement age to 70, reduce SS benefits, change the measure of inflation, raise current taxes, initiate new taxes, banks tax, carbon tax, national sales tax, reduce current deductions or eliminate them completely.

PEAK GOVERNMENT
PEAK OIL
INFLATION

EQUITY WINS OUT OVER DEBT (BONDS)

Does anybody else think the future is going to be pretty interesting?

Danny Boy seen here protecting his territory.