Just desserts- Bernanke's phony identity

You reap what you sow...looks like Ben Bernanke had his identity stolen.

You can't make this stuff up....the irony of a guy who is overinflating the US economy had his account stolen and his money was used to inflate other accounts. And best of all, he had his bank account with Wachovia...

At least ONE Fed official is telling the truth about employment:

The real US unemployment rate is 16 percent if persons who have dropped out of the labor pool and those working less than they would like are counted, a Federal Reserve official said Wednesday.

"If one considers the people who would like a job but have stopped looking -- so-called discouraged workers -- and those who are working fewer hours than they want, the unemployment rate would move from the official 9.4 percent to 16 percent, said Atlanta Fed chief Dennis Lockhart.

Inflation or Deflation?

I've been trying to figure out where this trainwreck is headed. The Government money bombs would lead you to believe inflation is around the corner. If that was the case this would be a very bad reccession. The more I look around and see, the more I think we are in for the worse Deflation in the history of our lifetimes.That would mean that this is more like a depression.

Asset and income deflation were gorillas in the great depression, and that is what I see happening. I know that my used car inventory has deflated in a huge way, causing me much financial pain. I also know that sales are down 60% because people have no discretionary income. They are experiencing cut hours, pay cuts, or out right layoffs. The ones that do have discretionary income are choosing to save it instead of spend it.

This creates less demand for goods, which causes business to cut costs and spending, causing a downward spiral. Until the job market turns, and people begin spending again the 500lb gorilla in the room has a name beginning with a D not an I. Love to hear others thoughts on this topic.