Inflation’s Collapse

[errolanderson]

Realize this is not a main stream headline, but inflation is already quickly slowing. Now economies have entered (which may be a shortened) stagflation period (we’ll see). Then, there may be a risk of full-on deflationary pressure. My opinion.

If stock markets remain in-decline and leg lower, inflation may have its legs cut-out from under it. Credit markets would come under pressure.

Here’s a piece of financial trivia and history. Found this interesting . . . . The crash of 1929 and 1987 occurred exactly 55 days after stock markets peaked (in the day).

Stock markets today peaked on Jan 3rd, 2022. The 55th day after our recent peak is Monday, Feb 27th.
Weird or what?

[bucket]

Hope so but have you filled your tank lately.?

[Guest]

Or been to the grocery store

[Grahamp]

10.49 for Mayo. Inflation train chugging just fine.

[sumdumguy]

Oh, yeh deflation is really evident, tell me where?

[burnt]

Oh, yeh deflation is really evident, tell me where?

When the package gets smaller? 🤨

[errolanderson]

Unless this war is contained, we may witness the most violent market reactions in-history. This is not a test . . . .

[jazz]

Unless this war is contained, we may witness the most violent market reactions in-history. This is not a test . . . .

A package of hot dogs now cost what a pound of ground beef did a few yrs ago. Any roast or package of chicken is $40-50.

Going to take a lot of rate hikes to put this back in the bottle.

Inflation is a monetary problem errol. Only one solution for that.

[errolanderson]

A package of hot dogs now cost what a pound of ground beef did a few yrs ago. Any roast or package of chicken is $40-50.

Going to take a lot of rate hikes to put this back in the bottle.

Inflation is a monetary problem errol. Only one solution for that.

Jazz . . . credit markets will take care of this.

[errolanderson]

Interest rate hikes would cause a cascade of defaults and a complete market failure. The WEF in its minions will then claim capitalism is at fault when infact it was a failure of their corrupt fiat monetary system and their policies that hastened its demise. They will argue the need for a centralized system of control and stakeholder capitalism where they have total control, because individuals are clearly too stupid to make economic decisions. A full chinese style social credit system with CBDC will be put in place, tow the line or have your wallet instantly frozen. Get privileges like food and heat if you turn your neighbours in who are not complying, maybe they keep a few undeclared chickens. Sry for the grim look into the future but this is the globalist's "great reset".

Rate hikes would be a disaster. Bank of Canada is 1st up-to-bat in early March. There is no way . . . .

[jazz]

Rate hikes would be a disaster. Bank of Canada is 1st up-to-bat in early March. There is no way . . . .

I am reading an article that said the only modern country on the planet that can raise interest rates is the US. Canada is holding a housing bubble and way too much govt debt, not enough investment. Going to lose that fake AAA status. EU will see capital flight now after Russia and the ECB is over extended as well. Japan is well Japan.

[Sodbuster]

Right or wrong I still say we need to raise interest rates, by not doing so housing prices will keep soaring and inflation will only get worse. The feds have painted themselves into a corner now and raising interest rates would be unpopular now. The government and a lot of people are living beyond their means, if rates go up we’re going to see some failures, but as a whole the economy will eventually recover.

[bucket]

I think a little different than others.

Before you can claim inflation is easing or deflation is happening, we have to get back to where we were before it all started.

Compared to wages , real house prices, fuel prices etc.

As an example fuel is higher now than when oil was $140 a barrel.

at one point they should quit saying inflation and use the real term....gouging.

[shtferbrains]

On the back of a napkin calculation it takes about the same amount of gold to buy a fancy pick up today as it did in 1974.

Is that gold standard?

Just need the gold?
Cash in the bank not so much?

[errolanderson]

It’s been reported, Russia’s central bank will not pay interest on its bonds (default). Russia is effectively bankrupt after a few days of war.

This will take years of financial pain to repair . . . .