Wednesday, May 12, 2010
U.K. Coalition Government Plans Deficit Cuts, Bank Bonus Curbs
All around the world you see deficit reduction policies and austerity measures being implemented or imposed. All deflationary!! The U.K. is now going to cut its deficit. European nations are being forced to cut back. States in the U.S. are being forced to cut back. Congress has passed "Pay-Go" and a spending freeze will go into effect in FY 2011 (along with the expiration of the Bush tax cuts).
This all points to a serious decline in demand, globally. 1937...here we come again!
Raise cash in this rally. This is your last chance to get out.