None So Blind As Will Not See Economics For Idiots-Negative Feedback Loop To Destruction

The following by D. Sherman Okst is so obvious that I hesitate to show it. On the other hand since, despite it being so obvious that even Blind Bob could see it, the powers that be still proceed down this crazy path I am showing it in case I am missing something so glaringly obvious which I would be grateful to anyone pointing out.

"Bernanke’s Unstoppable, Self Reinforcing, Negative-Feedback-Loop

Our economic death spiral into the Second Great Depression

Wracked up by both parties over many decades our debt has evolved into a yearly deficit that can no longer be serviced with tax revenue and borrowing."

"To avoid default Ben Bernanke chose to monetize the un-payable portion of our deficit. Each month about 100 billion dollars are created out of thin air to cover our government’s bills.

This has set forth an unstoppable, self reinforcing, negative-feedback-loop whereby:

1. Debt monetization (printing money out of thin air to cover the portion of governments spending not satisfied by tax revenue and borrowing) reduces the value of the dollar.
2. The debt monetization triggers dollars to flow out of bonds and into commodities.
3. This increases demand, commodity prices rise.
4. As commodities make their way into the supply chains businesses and consumers realize higher prices.
5. Since globalization has caused wages to stagnate at 1970 levels, and with 23% unemployment, businesses try to eat increases, this in turn reduces hiring, causes layoffs and kills expansion.
6. Consumers reduce their purchases, case in point: Wal-Mart is losing market share to the Dollar Store - that right there spells retail health (read: it’s terminal).
7. Nations whose citizens spend 32%-52% of their entire budget on food are especially affected.
8. In those nations where citizens spend 32%-52% of total their income on food; food riots erupt, social unrest breaks out, governments topple.
9. Geographically speaking, many of these nations are in the Middle East where about a third of the world's oil supply comes from - so oil production is adversely affected, the price of oil increases. Drastically increases. The empire must then send in troops and warships to protect oil assets from being wiped off the map.
10. Oil is an integral part of everything from farming to manufacturing to transportation, therfore the prices of all goods and services rise.
11. This of course creates more stress on our economy, which drives tax revenues down, whic creates a greater deficit, which causes idtiot Ben to lean on the print button and monetize even more debt.
12. Like an infinite loop in some errant computer code we go back to #1 above and iterate back through this unstoppable, self reinforcing, negatively-insane-Ben Bernanke-code that we call a negative self reinforcing feedback loop."

The entire article is worth reading the only thing missing is the solution which is replacing Bernanke/Obama in 2012-if there still is an economy worth salvaging, by a "common sense conservative" balanced budget, reduced government and government spending administration under Sarah Palin.