Business owners and private wealth individuals are hoarding cash

The business community realizes that the increased money supply is financing government spending and the private sector must eventually pay the piper.

Many private wealth individuals and businessmen are hoarding cash for fear of over-regulation and the Obama administration strangling real growth of the U.S. economy. Consequently, the business community is not investing as much as it might because it is concerned about inflation and higher future taxes to pay for the borrowing.

Since business investment takes time for a return, the businessman making an investment now expecting a return two or three years from now knows that his taxes are going to be increased with the expiration of the Bush tax cuts and the 3.8 percent new ObamaCare tax on unearned earnings. Thus the businessman is not investing today because he knows his return is being significantly reduced two years from now.