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Originally Posted by tabs
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.
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The masses are broke but it is still expensive to be poor. I'll stick with the stagflation call. The current glide path is about a 10% annual quality of life reduction / year that is being taken out of the average American's lifestyle. Prices will go up on what you need and down on discretionary consumer import goods. Many foreign currencies have dropped near 10% this year already, so there is the deflation offset achieved thru currency manipulation with no consideration to capacity improvements which occur organically over time. This manipulation is all planned and not randomly accidental.