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Government Hinders Economic Recovery

February 13, 2012 by  

Hello there,

I read your letter (The Bob Livingston Letter) every month and have a question about some of the conclusions you have come to in December. I know that the Fed is increasing money, which causes inflation. But I just read a book by Harry Dent and he makes a great case for deflation a la Japan style. His work is based on demographics, and, he says, we are entering a “winter season” in the economy. Per Mr. Dent, this happens about every 80 years or so. That the Fed, no matter how hard they try, cannot outdo the baby boomers who are saving rather than spending now. Japan has tried desperately to stimulate its economy (which is about 12 years older than ours) and it hasn’t worked. What is your view of this?


Dear Linda,

We are in an economic winter season because of the Fed’s money printing and government bailouts. The Fed created the bubble by setting interest rates that were artificially low. When the bubble burst, government began bailing out the firms that helped to create and profit from the bubble and the government began inflating the money supply. These actions only take money from the middle class and distribute it to the wealthy. The system is not allowed to clean out the debt, which creates the stagnate economy. These actions were also taken in Japan, and they are still languishing economically. We will do the same thing unless government gets out of the way and allows the natural process of debt and destruction to take place. And by the way, baby boomers are no longer saving. Their savings are being consumed by inflation, a stagnant stock market and, in many cases, the need to draw down their retirement funds in order to remain in their homes and provide food for their families because they are no longer able to find jobs.

Best wishes,

Bob Livingston

is an ultra-conservative American and author of The Bob Livingston Letter™, founded in 1969. Bob has devoted much of his life to research and the quest for truth on a variety of subjects. Bob specializes in health issues such as nutritional supplements and alternatives to drugs, as well as issues of privacy (both personal and financial), asset protection and the preservation of freedom.

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  • Laurence Tribe

    How about the notion that the worldwide megaBankers are driving the economic collapse we’re witnessing in Europe, their goal being the introduction of a single currency, perhaps the “Bancor”, as socialist John Maynard Keynes once suggested?

  • http://yahoo Donna

    Well if the government hadn’t used the money that us baby boomers put in and then they never put it back things would be fine.Also if they didn’t hand it out to people that never paid in that would of helped. I know several years ago there was a thing on the news about giving it out the people that came over form Viet Nam the one lady said don’t know i would do if they took it away. It not just them but the government hands out to others yet are people sometime get know help.They have worked hard and cannot get help.Yes i do believe in helping people and i would help someone in need. The government needs to do more for the USA. It seems the rich get richer and the poor get poorer. They need to quite cutting programs for the elderly and disabled i struggle every day stretching what i get.


    I live in Alexandria, Virginia. I am unable to find out what our laws are about owning a gun and keeping it in my home. If a person breaks into my home & I shoot him the ONLY answer I get is I will go to jail even tho a person was in my home to rob me and maybe bring bodily harm to me.
    No matter I am the one that will go straight to jail altho the one I shot is dead oe they are bleeding & still alive but in my house.
    Are you able to help me with with correct info.

  • David169

    I disagree with Bob’s comment. Obama has built a huge overhanging disaster with his printing money like there is no tomorrow. We have seen inflation of almost 100% in food and petroleum products. The only reason we have not seen a 100% inflation on everything is the simple fact that our actual unemployment is now over 30%. The unemployed and the employed are only buying a minimum of necessities. Consumer demand is so low that inflation only affects the items tat still are selling which is petroleum products and food. If the economy starts to recover and there is a strong demand again for consumer goods the overhanging inflation will be triggered and that will crush any recovery. As soon as prices double, Obama will double his rate of printing of money. That will be when the hyperinflation starts. Unfortunately our government has always taken the “throw money at the problem” approach to solving anything. The mighty socialist/progressive/communist has completely shot down any possible chance he may have had of the US having a socialist government. He has not only impoverished everyone in the US he has destroyed any possibility of a financial recovery for the government. The government is is worse shape than the unemployed. The government cannot recover until the economy recovers and Obama has seen to it that the economy can’t recover. If the economy cannot recover the only way out is to drastically reduce the size and cost of government which eliminates any possibility of a socialist government. Obama tried to spend the US into prosperity and borrow our way out of debt and as any thinking person would have known it doesn’t work.

    • ChristyK

      You are mostly correct about how our dollar will collapse. After Obama decides to print more money, the world will drop the dollar as the world reserve currency. We have mostly been protected from bad inflation because there are so many dollars spread around the world because of our unique situation as the reserve currency. As soon as the dollar is dropped and dollars come back to the US, we will get hyper-inflation that will will make the Weimar Republic (pre-nazi gernmany) look like a cake-walk. Because most americans don’t know how to take care of themselves and think cable TV and a cell phone are necessities, it won’t be pretty.

  • HKaufman

    Bob I am calling out the remark:because they are no longer able to find jobs. INCORRECT. I will invalidate this, I am 65,Retired, and I get Job offers daily, So how in any way will your comment be Valid?? True the youth get the jobs why, because companies know that BABY BOOMERS will not be working past a 65 this is not ROCKET SCIENCE, companies are not going to invest in those over 65. Your correct about having to draw from savings to meet obligations. This has been the MODE for 60 years, ITS never going to END…

  • Jan Mora

    I saw this advertised on TV and went to the website. I thought this was very interesting and believable. Is Mr. Stanisberry correct?? I’ve been trying to keep up with all this mess and need to know how bad things real are. I didn’t register with his website and wonder if I should.

    Thank you for your future comment.

  • Ridge Runner

    Our problem has been caused by the very people that we the village idiots voted into exsistance. These lying thiving political hacks are giving us the run around and they can blame no one but them self for the mess they have the country in.We the people can only realy blame our selfs for continuing voting these same people to office. So we can learn from our mistakes and run them off or just roll over and take it like a man and continue like a good sheepe.

  • Bob

    Dittos to Donna and Theresa above. We need an audit of ALL government spending and for obsolete programs and departments!! Bob


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