Mrk: "I remember oil hitting more than 100 USD under bush"

Sure the root of this issue (monetary policy) predates Obama. My aim with this post is not to defend previous administrations; trust me they don't deserve it. My aim is to show that Obama has done little to help the situation and has in fact exasperated it.

Mrk: "resource pricing is not mainly due to inflation, but depletion (production of most minerals are going down, recycling produces more copper than the entire mining industry does [citation needed])."

Sure supply and demand is the main driver of commodity pricing; however there is clearly a trend towards higher prices and clearly the dollar has lost a ton of value in the recent past. Inflation is a good portion of the increase; perhaps not the majority yet; but I think your mind will change in a few years.

Mrk: "libya is more or less done"

Really? You think it's done? So the power vacuum is filled by who? Everyone else agrees? I think we are no where near the end. It's actually funny that you say it is over; because that is preciously the thing most people fault Bush for being naive about. Toppling Saddam was only the beginning; so shall it be here.

Mrk: "inflation, spending and deficit is a continuation of the policies from before."

Glad we agree. Obama has only continued failed policies of the past; he has yet to actually offer something even remotely similar to change. Well besides him being the first black president.

Louis: "Inflation is the only way out of deficit spending or to at least reduce the deficits. We are only at the beginning of inflation now. Wait a few years, 10% is a nice number."

I agree that we are only at the beginning; and that 10% is a nice number considering the future. But; I disagree that inflation is the only way out. Why not just default? Say sorry; we aren't paying you back China. I mean we aren't anyway; but at least this way we are honest and can start the rebuilding.

Instead; the government will use inflation to keep us going for the next 5-10 years till a massive collapse happens.

Defaulting is not an uncommon thing. The USA has defaulted on obligations many times before; both at the state and federal level. Most countries have. Plus having a lower credit rating will make it harder for our corrupt politicians to borrow; thus making fiscal responsibility essential.

Louis: "And while everybody is badmouthing some European countries, I think the situation is very similar at yours in the US."

On the contrary; I think it is worse in the US. The PIIGS are at least held to some form of sanity because they cannot print money.

Btw; Mrk, on the topic of commodity prices. Sure oil is a tough commodity to judge because of the increased demand of oil by developing countries. But how do you account for the increase in Gold? Demand is actually down for jewelry; so why is gold skyrocketing? Gold is a historical barometer for inflation. The increase in demand has been almost entirely investors; central banks; and the wealthy. What is their stated reasoning? Inflation.

LOL @ you thinking they will actually make those "cuts"

Have you learned nothing watching these retards ruin our government.

Deadcode: "we are honest"

I would expect something like that from a liberal in trying to justify a default but a default is not honest. It is a broken promise.

Furthermore, there is a well developed secondary market in U.S. treasuries. We can't turn away just China. If we tried, they would swap off their bonds to other countries. We would have to default to everyone, including U.S. holders.

Skrum; default is unavoidable. Unless you think we are somehow paying back 15 trillion (and counting) dollars. Inflation is still a form a default; in fact it is a form of default that is completely dishonest and devious.

Instead of fessing up and defaulting on our debt. Instead we will print dollars until they are worth nothing at all; taking the whole system down with us. It's pretty clear that this is the path we are on from my vantage point.

Is this not how you see things? If not, why?

these fucking retards should just fix the problems instead of fighting each other. what fucking idiots, they suck at their jobs.

why dont you run for president then trendz?

Default is not unavoidable. We have had debt in excess of GDP before and we worked it down. What will be, has been.