Share selloff

Starting last Friday and ending today, I sold every share I own.
I believe that the markets are so well ahead of the economic situation that even the losses I made on many shares will be worthwhile, because soon I can buy them all back at much lower price.
That 7 month bull market bubble is about to pop!
Why am I so confident? Three main reasons: Firstly, the unemployment situation is still getting worse, and unlikely to improve for a long while yet. Secondly, the government has drastically overspent to try to make the situation look better than it is. Thirdly, the increased the money supply increases inflation.
On the first point, one of the most important things any economy can do is obtain high employment. As long as everyone is fulfilling needs and wants then the economy has a good chance of prospering. As long as the economy is paying people to be idle, taxation must increase for no benefit. Increase taxation and spending slows, along with economic recovery. Delay the taxation and the interest on the debt must be paid, so the total cost of the debt goes up, but is spread over a longer period. Always living on loans is an inefficient way to run an economy, and should not be necessary. Indeed legislation should prevent the idiot politicians from doing it, only being allowed to do so after a referendum.
On the second point, politicians are always willing to wreck an economy to get back into power. Their power obsession is only rivalled by their greed. Their massive overspend on the public sector is creating a huge public debt. Their gambit was to offset the decline from private sector expenditure, in the hope that confidence would return before the debt grew too big, or at least while an election was held. Well it has failed, and public sector redundancies (always crazily expensive) will restart the private sector collapse in confidence. Expect an election soon, before everyone realises how bad things are.
On the third point, inflation makes savings less valuable. While it also reduces the real value of debt, it decimates savings income, penalising the thrifty and the many and growing population of retirees that depend on it. Those at the margins will need help, further increasing the burden on the public purse. Inflation also causes prices to rise, reducing the ability of people to buy, slowing output, and so losing jobs. In addition, expenditure tends to go to cheaper goods, and they come from abroad, worsening the balance of payments and so increasing debt again.
This is not the beginning of the end, but the beginning of the second fall.

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