I had been all agog this past week at the tremendous numbers being tossed around by the media as the government tries to spend its way out of the current economic  mess.  Deep in my reptilian brain is a fear of runaway inflation that goes back to the seventies when such a thing appeared to be nearly upon us.

But then came the eighties and since then bond markets have reacted violently to any sign of an inflationary spurt.  We have had periods that were similar to those in the fifties and not the seventies when I was just a small boy and had no idea inflation was anything more than the result when you blow up a balloon at a birthday party.

And today I realized what the markets are trying to tell me and anyone who will listen.   Gold and silver are down because the markets are not going to allow inflation to have its way.  The government can print money like crazy but it’s just not going to result in too much money chasing too few goods.   The bond market and interest rates will fall on the printing presses like a load of bricks just as they have been doing for the past twenty five or so years.

The government’s actions are not going to work it seems to me.   In fact they will have the opposite result.   Printing and printing more money will lead to higher and higher interest rates as lenders refuse to be cheated out of their profit.   And many of these lenders are not Americans don’t forget.

This is why gold and silver are down.  The media tries to say it is because “all” commodity prices are heading south.   But it’s more than that.   It’s the markets practicing a discipline that the government lacks.

What was I thinking? Oh well.  It’s time for the final debate.  I have resisted watching these things but might as well tune in for this one.  Judging by the few visitors around here at this moment a lot of other folks are going to be watching as well.  It could be an important event.  I pray these candidates will have something meaningful to say.  Forget the posturing and the politics.  What are your plans!  And don’t plan on surprising us with your plans the day after the election.

We won’t like it.  And, more importantly, the markets won’t like it.

Here we go.  Nothing new from our two candidates.  Get ready for an amazing display on the financial markets as we slide into an old fashioned, butt kicking depression.   It’s a scary thing for sure.  Oct 16th.   5am.

“Overnight U.S. stock markets slid across the board, with the S&P 500 index dropping 9 percent after a report showed U.S. retail sales dropped the most in more than three years.”

“The Nikkei share average plunged 11.4 percent, the largest single-day decline since the 1987 stock market crash.”

“Even the most deft investors have been flipped by the ferocity of selling and risk reduction in markets. Citadel Investment Group, one of the world’s largest hedge funds, said September was the single worst month in the history of the company and warned of more volatility in weeks to come.”

It’s a financial firestorm.

US confronts possibility of long, deep recession

NEW YORK - The U.S. has not endured a deep and prolonged recession in more than a quarter century — enough time for many Americans to forget what one feels like.

But unlike the last two relatively short recessions, this one could be much longer and more severe, potentially bringing with it anxiety and job losses not seen in many years.

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I’m going to continue to write about things that matter here at Virginia Breeze.  There can be encouraging signs even in moments of terror if we only step back and recognize we are children of God and He will take care of us even if we do not know the way.

David