IP Daily

Economic Outlook: Is It Safe?

Again Mr.Quinn hits the right marks, when he implies that allocation of resources ( i.e money ) has either a beneficial or negative effect.

In this case it is negative because the economic forces in play now have stated that you cannot have both increase in supply and demand with the allocation of resources in hand ( money ), without having a negative impact, in this case, on price or valuations. Thus, the additional expenditure of $ 700 billion has been allocated for an investment that will NOT increase production ( investment ) and thereby, demand.

This means a smaller savings pool with which to invest because YOUR dollars will be allocated to funding this horse manure through higher taxes, prices and thus even less demand. This $ 700 billion is a distortion and runs counter to Laws of Supply and Demand.

We have played with the Laws of the Universe and now, we will pay. Dearly.