Once the Great Depression period begins, the effects on assets will be as described in the paragraph above. Live it up a little man! You have so much more choices than the Jones. This has historically tended to happen when the Fed tries to withdraw its stimulus.
No European politician is willing to allow that to happen, at least not yet. But how on earth could they have gotten the stock market up so much if they are only expanding money and credit by a 6.
Wage earners who receive new money tend to save some of it but they also spend some of it. From the point of view of the wealthy few who control the status quo in the US, they have a stark choice: If that is true, the fact that the CPI has increased still only barely obscures a percent decline in the value of money.
I personally think that the gym membership is worth it if you use it…. Of course, the stock market and the bond market would also see significantly lower prices. Wage earners who receive new money tend to save some of it but they also spend some of it.
There is obvious disagreement as to whether inflation or Depression comes first. Gifts are more generous. These too are not demand deposits. Because of the power of compounding, if you get your early years right, you can probably live it up paycheck to paycheck a few years pre-retirement with no problem.
There is no doubt that sooner or later we are going to get an outbreak of price inflation. Remember, they have to buy bonds to push rates down, so there is inflation there.
The stability of America's status quo is illusory. Savers would get a decent return on their savings. This being an election year and the Fed now politically toxic.Learn more about inflation to know how are you able to secure you future finance.
Know why inflation is inevitable and what you can do about it. This is the inevitable result of shoveling all the new money into the hands of the wealthy and corporations.
Real-world inflation is certainly higher than official inflation, but the real inflation (higher prices for the same item) is in assets, which have tripled or quadrupled in a mere decade. Why High Inflation Is Inevitable. April 9, By Monty Pelerin.
How this economic disaster ends is something about which many of us speculate. Two extreme endings are likely — a sudden deflationary collapse or a period of very high inflation/hyperinflation which ultimately cripples commerce and resolves itself in a deflationary collapse.
Here’s Why Rip-Roaring Inflation Is Inevitable – On: August 5, August 8, By: X22 Reporter The stability of America’s status quo is illusory. Last week, a long-time subscriber from Minnesota wrote, "It seems obvious to me that the only way out of this 'ECONOMIC CRISIS' is to inflate the dollar.
Real-world inflation is certainly higher than official inflation, but the real inflation (higher prices for the same item) is in assets, which have tripled or quadrupled in a mere decade. 3. The inevitable consequence of asset inflation is rising income and wealth inequality.Download