Beware Of The Price Bubbles

Adam Smith wrote about the invisible hand of the economy and the way it automatically adjusts prices to reflect reality. It does not matter what the rulers do in the long run. Prices will eventually come to reflect reality. Still the chutzpa crowd in Congress believes they can centrally plan the economy and dictate prices.

Where are the next price bubbles? Well I already see them in replacement auto parts. Sure Americans have stopped buying new cars but we still drive. The rest of America is now doing what I have been doing for decades - fixing their old cars. So this has caused a spike in the cost of those parts because of this demand surge. My son's rebuilt alternator cost over $100 where I only recently could buy one for about sixty bucks. Booze is soaring in price as well. People have to do something with all the free time on their hands now accompanied with the depression. So they get drunk. Then many make bad decisions as well unfortunately.

Here is what will rise in price in the future - building materials. That's because Obama's "stimulus plan" will artificially cause a surge in demand for wood, glass, asphalt , steel, concrete, electric wire, replacement windows, etc. We will not produce more of these materials so the price has to explode as a result. It's supply and demand pure and simple but it is distorted by the illegal fiat money.

Now Congress will avoid bringing up this unpleasantness but I thought you should know. So when these prices soar in the coming months most Americans will remain dumb as rocks and figure it's just the way things are. You, on the other hand, I'm hoping will say, "Wait a minute here! Tomas said this was going to happen." Then perhaps you'll spend more time listening to me and start ignoring the liars on the hill. Incidentally, I'm getting tremendous flack from many sectors for telling the truth. I'm not sure how much longer I will be permitted to speak openly. Apparently the current ruling class is not tolerant of those who use free speech to tell the truth about the new fatherland. At some point I will come to the conclusion that things have gone too far and I will have to clam up, go into complete survival mode and concentrate on protecting my family. Then you are on you own amigos! The time approaches fast...