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October 27, 2011 I created a post that deals with many of the issues being discussed in this thread. That post was based on articles written in 2003 and 2004. Those articles were accurate in identifying the issues we now face, even though they were written nearly a decade ago.

Perhaps it would be useful for those commenting in this thread to go back and read what I had written. Warning - the post is not light reading. It presents a thesis which you may agree or disagree with, but provides source information and encourages you to do your own research and enter into a dialogue based on facts. Part of what has followed from it is a post just completed on a Morningstar article:

6 hours, 11 minutes ago
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Rob Arnott has been saying almost the same thing here on M*, and there are many others.
Seems to me all government policies tend to favor either lenders or borrowers... creditors or debtors... savers or spenders... The present administration favors the latter of these pairs, thus all the stimulus, and thus the likelihood that the necessary deleveraging will take a very very long time, so long that the options of inflation (already being used) and default will become very tempting. We are truly under financial repression. There is another way, namely austerity, but since that would shift the immediate pain from the savers to the spenders (the very ones that voted in this administration), it will not happen till forced on us. So in any case, Gross's doom and gloom has a lot going for it.

Hi hazard,

You seem to indicate a dichotomy – and either or situation, one extreme or the other. Unfortunately, that is the current political system under which we operate. And that is one of the basic problems that needs to be addressed – the extremes of either side do not offer reasonable solutions, but one sided views which they tout as being “THE” solution and nothing else will work. I agree with many ideas expressed in the article. But, to me what is noteworthy are the ideas that are missing and need to be part of the solution.

It would be very easy for me to create my own article, but that is not appropriate for this commentary section. Suffice it to say that although the article brings up good points, there are many more thoughts that need to be included from a variety of sources to get a complete picture of the problem we face as a society and to begin to formulate solutions. Thank you for your commentary. It serves to highlight the root issue that must be addressed before we can progress to identifying and addressing solutions that will enable greater growth for society as a whole, something which I believe we are capable of doing.

“…so long that the options of inflation (already being used) …” Note – our current inflation rate is quite reasonable considering historical rates. For a view of what the monthly and annual inflation rates have been since 1914, please follow the link below: Historical Inflation Rate data from 1913 to the present

Bob Strawberry Fields – Forever?

The link to the October 27th post follows: How We Got Here - Where Are We Headed?”

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