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Originally Posted by tabs
Pension funds have projected their viability rates at an 8% return. The FED set it up so that institutional investors have a means of making a positive return. Hence Equities are the only real game left in town. The FED also bought up all that mortgage back paper and if you look around certain areas there is a lot of shadow inventory sitting vacant. Yet they are building more...
It is all essentially a rigged game, and the data to justify their moves is smoke and mirrors with a wink and a nod to the savvy guyz who dig below the headline news to seek the truth of the economy. So they ain't really hidin nothin.
The picture ain't a purty pig with lipstick on it neither.
Timeline....at some point either there will be so many USD's floating around the world that they will be regurgitated or their will no longer be buyers of the bond paper they are printing....
The US is set to really start paying off on SS, Medicare and Prescription Drugs as the Boomer retire. .with lower tax revenues they will have to print bonds to the tune of a Trillion a year starting in 2017 or 2018? How long will it be before the buyers knees buckle.. Ohhh yeah I almost forgot the FED can be buyin up that paper on the sly....till they get to 7 Trillion on their balance sheet and then?????
So the game of musical chairs can go on for a few more years...till you cross the threshold of some magic number where a guy will wake up and say...WAIT A FKIN MINUTE HERE??? Wats this shyte of 25 Trillion on the books and how are they gona pay for it???.. Let us call it the awaking or an epiphany.
Lets say 2022....give or take a year or two..this ain't rocket science ya know...
So it goes the USA is like Wimpy who ate the Hamburger yesteryear and has to pay back the money he borrowed to buy it today. Only he ain't got the money.... So no more Burgers for Wimpy and no money for the lender...everybody gets fked except for the dead guyz in the cemetery who lived the life on your dime.
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Yes, all of this is true and accurate. Under normal conditions our markets would have tanked long ago. If anything, we need to fear high inflation. It is coming so prepare yourself. The economy will stagflate. Taxes will rise. Those dollars that were printed and shipped across the globe are coming home now. This creates inflation in assets first and then expands out from there to other categories. Think $15 minimum wage or Starbuck's coffee. This is why fiat currency values are elastic and not fixed. The theft of purchasing power and value is thru currency debasement. Most world currencies are worse than ours, but the dollar is too strong now and it will be ratcheted down so the gap doesn't widen further and jeopardize exports. That is another plus for U.S. stocks.
I'm not a cheerleader for the stock market. I'm just sharing information with you guys so you see the other side of the story, as money flows always dictate the outcome and there is no reason only the 1% should benefit from it.