The Death of Inflation

[jazz]

If you think there is no inflation, look at the price of houses or cars. You cannot get a sub $30k vehicle anymore in any trim level. Anything close to that range would be a subcompact.

We have to stop looking to the CPI numbers. They are a mirage. The real inflation is in assets and services not consumer goods...yet. But that could change now that we have wider inflation taking hold and new ESG and wealth taxation coming our way.

The average joe has no idea whats coming their way. Many will be crying to be put on the govt dole permanently and just shelter in place forever.

To keep china exporting the rest of the world needs to see a commensurate increase in COL so we never ever try to think that we can make anything here, except fiat debt.

[canolacrazy]

i think most on here would agree that central banks have been kicking the can of raising interest rates to manage monetary policy down the road has been happening for years. an earlier poster said trying to guess timing and make money off it is the problem. i agree with that. look at the toronto and vancouver housing markets. we've been told that they have been overheated for years, and yet if you live there and haven't jumped on the bandwagon, you look like an idiot. same with farmland. how many of us have said "i'll never pay the price, i can't make any money at it." one thing i do believe. the longer central banks don't have the guts to tighten monetary policy and stop protecting stock investors, house speculation etc, the quicker and more painful the crash will be.

[Guest]

If you think there is no inflation, look at the price of houses or cars. You cannot get a sub $30k vehicle anymore in any trim level. Anything close to that range would be a subcompact.

We have to stop looking to the CPI numbers. They are a mirage. The real inflation is in assets and services not consumer goods...yet. But that could change now that we have wider inflation taking hold and new ESG and wealth taxation coming our way.

The average joe has no idea whats coming their way. Many will be crying to be put on the govt dole permanently and just shelter in place forever.

To keep china exporting the rest of the world needs to see a commensurate increase in COL so we never ever try to think that we can make anything here, except fiat debt.

shit, look at everything
just about all is 50-100% higher than a year and ahalf ago

[errolanderson]

Are economies heading into an inflationary depression?

The Fed is hanging onto markets by the skin-of-their-teeth right now. If Powell says the word ‘inflation’, stock markets immediately tank. If Powell continues with current abusive money printing, markets will tank with failed money velocity (IMO).

And if markets tank, the price of tractor tires and land prices triggering upside down mortgages won’t follow?

Pick your poison . . . .

[errolanderson]

The U.S. Senate approved another $1.9 trillion in money printing on Saturday for unemployment benefits and and another round of free cheques and helicopter money.

Stock markets not performing well given the mass gravy train was greased again this weekend.

Economics and central bank policy at-its-absolute worst (IMO). This will not end well . . . .

[Ache4Acres]

The feds only lose in a deflation. They cant let that happen at any cost. Lots of deflationary pressure in the market for sure. Aging baby boomers by far the biggest macro threat. Pile on Covid deflation and slowing money velocity and they are willing to pump things up heavily and risk some run away inflation as the lesser of two evils.

They won’t let it crash this time. Not until the fall anyway. Going to watch stocks, crypto and industrial/energy commodities run like mad over next 4-6 months. Safe haven assets to get creamed or stagnate is my guess.

[Ache4Acres]

Oil is going on a rip snort tear. $80 incoming in next 30 days maybe higher

[biglentil]

The U.S. Senate approved another $1.9 trillion in money printing on Saturday for unemployment benefits and and another round of free cheques and helicopter money.

Stock markets not performing well given the mass gravy train was greased again this weekend.

Economics and central bank policy at-its-absolute worst (IMO). This will not end well . . . .

Fed never loses. Its a private entity with the authority to print money out of thin air with interest due. With all the money printing still hate gold Errol?

[jazz]

Fed never loses. Its a private entity with the authority to print money out of thin air with interest due. With all the money printing still hate gold Errol?

I think errol is talking stagflation, where prices can rise in a deflationary environment in the wider economy, devaluing labour and fiat currency specifically.

Anyone relying on a wage from an employer is going to get shook pretty hard in the coming yrs.

I would still rather have farmland than gold. Gold has zero utility.

[sumdumguy]

I would still rather have farmland than gold. Gold has zero utility.[/QUOTE]


Farmland has upkeep. There were years that renters were not plentiful.

[AlbertaFarmer5]

Farmland has upkeep. There were years that renters were not plentiful.

As far as I know, renters for gold are never plentiful. Which is to say, the only income from gold is appreciation.

[jazz]

Think hard about a situation where gold goes up 10x in value and becomes a medium of exchange again. You are talking about a social dystopia. Gold would be the least of your concerns. its value would be worthless because what goods would you exchange it for?

In that situation, do you really want to walk into a city with gold bars in your pocket?

[errolanderson]

Fed never loses. Its a private entity with the authority to print money out of thin air with interest due. With all the money printing still hate gold Errol?

Fed is losing big-time and in big trouble . . . . Money printing is simply adding to debt. Little to no inflationary response. Gold prices have been thrashed toward their next key support of $1,680 per oz today.
Should gold break $1,680, next key support technically appears to be around $1,580 per oz (IMO).

China annouced they are tightening monetary policy yesterday. This is bearish global commodity prices and credit markets.

[farming101]

A dollar can only come into existence as debt. It's a bizzaro world where $1900000000000 can be printed and somehow that can be justified as deflationary.

That is only because most people think of paper money as a store of wealth rather than a medium of exchange. I don't think people will ever understand that debt of a sovereign nation issued in the "coin of the realm" is not the same as the debt of the people of the nation.
If a person dies and they are in possession of 10 million in 50's you could throw it all in the burning barrel and it wouldn't change anything.
Assets, precious metals and economies only have worth because people view them as having value.

[burnt]

That is only because most people think of paper money as a store of wealth rather than a medium of exchange. I don't think people will ever understand that debt of a sovereign nation issued in the "coin of the realm" is not the same as the debt of the people of the nation.
If a person dies and they are in possession of 10 million in 50's you could throw it all in the burning barrel and it wouldn't change anything.
Assets, precious metals and economies only have worth because people view them as having value.

Dang, why do I feel like you just callously went and cracked my piggy bank?