Quote:
Originally Posted by NoRush993/951
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.
|
I at one time thought hyper inflation ala the Weimar. However the demand curve, industrial utilization rate, velocity of money, employment participation rate, and debt load all indicate deflation as the the consumer is tapped out. Ownership of America is what is changing as that finite foreign capital is repatriated back. The American people are going to be left being beggars.
The EU, Japanese, Chinese, and other BRICS economies are not doing well either and it is a flight to stability that they are buying because they are scared shyteless.
So we have inflation in Equities as foreign capital arrives which is offset by economic weakness as there is no demand. At the moment it makes the US appear to be stable with some growth. But that really is an illusion as the underlying economics globally belie that notion.