The Death of Inflation

[HITTGrapevine]

1 and 2 yes but crash risk unlikely, not until they cut off the free money to the addicts. Plenty of it will find its way into Robinhood and crypto exchanges. Used cars under $3000 might get hard to find along with Xbox's. Saving in dollars is a sucker bet only for those willing to watch the purchasing power of their hard earned money get eroded by inflation. The ones that get money for nothin know better.

That about hits the nail on the head.
People who sit on the sidelines with cash savings during times of high inflation will watch their wealth evaporate. The rush to be fully invested is everywhere. Stimulus money and savings all going into consumer goods, equities, real estate, land. Prices for everything going higher and higher.
Where does the safe money go?
The economy already is already overstimulated.
And the US has just cracked the lid on another $1.9 trillion stimulus package.
Lock in your rates. This could get interesting

[shtferbrains]

"Where does the safe money go?"

The real money like the backroom boys that are advising the great reset?
Where is the low risk spot to protect acumulated lifetime earnings from bad fiscal management by governments.

[errolanderson]

"Where does the safe money go?"

The real money like the backroom boys that are advising the great reset?
Where is the low risk spot to protect acumulated lifetime earnings from bad fiscal management by governments.

Realize my opinion is not a popular one . . . but any inflationary push will be short-lived (IMO). The U.S. bond market is already hinting at this.

The central bank/Fed money printing show is now extremely long-in-the-tooth. To me, this faked prosperity is now in its final stage . . . like the ‘final burst’ of a fireworks show, . . . then welcome potential ‘rapid asset deflation’ or the death-of-inflation.

[Rareearth]

Please elaborate on the US Bond market, and the effect of higher rates.

[biglentil]

Realize my opinion is not a popular one . . . but any inflationary push will be short-lived (IMO). The U.S. bond market is already hinting at this.

The central bank/Fed money printing show is now extremely long-in-the-tooth. To me, this faked prosperity is now in its final stage . . . like the ‘final burst’ of a fireworks show, . . . then welcome potential ‘rapid asset deflation’ or the death-of-inflation.

That thesis is based on the thinking that the fed is somehow going to change its course after at least 50 years of loose monetary policy. The printing presses do not appear to be slowing down just the opposite. They expanded the money supply by 30% in the last 12 months and just announced another $1.9t. If there were a death of inflation like you say wouldn't that mean they could go on another printing show?

[Rareearth]

Historically yes, if investors lose confidence in the stock markets or fear higher interest rates, then they move into bonds driving higher yields.

Now with all the QE, or extra cash stimulus, the stock markets are going higher because that’s historically the best rate of return. Now as a hedge, or just another - next best (safe??) place to invest, investors are now buying bonds as well. Both can go up at the same time, why not?

Govt is promoting the idea that the economy is booming, unemployment is down. This begs the question “compared to what or when?” Last month isnt fair, hows about last year or two years ago?

If interest rates go up, or is supported by Govt, they won’t get re elected and as well, massive recession and bankruptcy killing the economy and consumer.

China is squeezing the market, forcing consumers to buy China everything. This is through control of container freight and sneaky/ quiet inflation in North America that everyone is underestimated. No one wants to work, paid to stay at home with stimulus, higher my minimum wages, higher wages at Wallmarts, Targets, McDonald’s etc. Higher fuel, food prices, housing, etc

[errolanderson]

Released this morning. This is inflation? . . . .

Annual inflation quickened to 1.1 per cent last month from 1 per cent in January, Statistics Canada reported Wednesday. Economists were predicting a 1.3 per cent pickup in inflation, according to the median estimate in a Bloomberg survey. On a monthly basis, prices rose 0.5 per cent versus economist forecasts for 0.7 per cent.

[furrowtickler]

Yet most things ag related have jumped 20% or more in just the past few months

[ajl]

Yet most things ag related have jumped 20% or more in just the past few months

Ag inputs are really the only place where one sees any inflation. Farmers expect inflation and are rewarded with it. With all the money printing, I am pleasantly surprise that people still accept the canuckistanian loon, which is great while prepping for the coming collapse. Told my wife to stock up on canola productions and we have when we can still find stuff on sale. Biggest worry is higher input prices meeting lower output prices especially canola on the tail end of this inflationary mini boom.

[furrowtickler]

Ag inputs are really the only place where one sees any inflation. Farmers expect inflation and are rewarded with it. With all the money printing, I am pleasantly surprise that people still accept the canuckistanian loon, which is great while prepping for the coming collapse. Told my wife to stock up on canola productions and we have when we can still find stuff on sale. Biggest worry is higher input prices meeting lower output prices especially canola on the tail end of this inflationary mini boom.

That’s exactly what I am concerned about , or if we have a drought and or frost reduced crop for next years inputs .
Could be nasty set up

[macdon02]

Does anyone have the basket of items we actually use in Canada to measure inflation currently? There's been a ton of manipulation, i know that pulled food prices and home ownership in exchange for rent, in the US. Think it would be helpful to know exactly what is being measured. $52 or $56 OSB sheets($1000 lumber a 4x move in 12 months), $18 canola, are excluded. Last time i looked at the actual list it was rigged to not show any inflation.

[Guest]

Yet most things ag related have jumped 20% or more in just the past few months

and lots are up 50%
bet all the big seed co's are kicking themselves in the ass for reselling canola seed lol