- May 17, 2007
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Sadly, it seems that nothing will be accomplished with the government shut down and later with a show down over raising the debt limit The government will flail around and seek one source of funds after another. But it will not stop spending, and it will not tax the untaxed. It will continue selling bonds to the Fed for cash, but that will eventually ruin the member banks. We will see a tremendous inflation, but the government will not accept responsibility for it. Rather they will blame the business community. We will have to endure high inflation, high unemployment and a scarcity of consumer goods. That means a much lower standard of living. Not many people will accept that. I don't know what will happen then, but I can guess it won't be good.