DEFLATION: Comin-in strong

[biglentil]

Dont worry the WEF Young Global Leaders like Newsom has the solution for inflation to cause more inflation, $17B in handouts. Jagmeet also on board with throwing gas on the fire. Its the controlled demolition of the dollar, no easier way to implement communism.

[jazz]

I am actually bullish on Canada, because the new paradigm in the world will be a resources backed currency dynamic as debt fiat dies and climate change is blown to pieces. Russia set that piece in motion.

We are well positioned to make some serious gains but first we have to remove king retard (and others) from the equation.

[biglentil]

While dozens of food processing plants mysteriously caught fire so far in 2022, Aspire group completes worlds largest bug protein plant in Ontario.
Sorry Jazz I do not think the globalists have our prosperity in mind.

[jazz]

Its full on clown show folks. Putin must be having a good ol laugh at our expense

[TOM4CWB]

Hi-ways full of campers, airports jammed with people , all local lots for sale in two towns sold signs on them within a few days of listing. Seems some people haven't got the memo yet. Local contractors still can't keep up.

BNN had a interesting interview,

US banks have never been flusher with cash... the Fed has been buying all the risky assets... the banks wouldn't touch on expiry of loans... So the 'stress test' revealed very healthy balance sheets with low risk loans.

No questions about the US Fed balance sheet at last meeting... folks forgot about the quantitative easing buying up all the junk bonds and bad debt...

And anyone wonders why there is inflation????

If the Fed and BOC... ECB all stop buying the bottom high risk loans... then comes the domino effect...

Some annalists are saying the Fed will be forced into start dropping interest rates by the 4th quarter 22.... they seem to be late to the party in their monetary policy moves...

By mid summer watch the commodity markets fall out of bed... if the Fed keeps pumping fufu dust into the inferno...

Cheers

PS the US consumer confidence 48... dropped again... some big box stores don't want return merchandise... just tell folks to keep it plus the refund... overstocked issues

[errolanderson]

We are now in a global recession, including the U.S. economy. The question now is; how deep and how long?

[biglentil]

We are now in a global recession, including the U.S. economy. The question now is; how deep and how long?

Almost every hyperinflationary period in history is preceded by deflationary collapse. Volker cranked rates to 20% in the early 80's, the economy survived mainly because debt was 1/100th of current debt levels. I'm betting on them having another Volker moment. Cash may be a good place to be in the short term, but not much point if store shelves are bare. The economy almost entirely seized up in 2008, banksters were literally lining up at ATM's before the meetings. That was a trial run, nothing was repaired, infact the bubble is much larger this time around. Buckle up.

[ajl]

It actually is the other way around:every hyper inflationary period is followed by deflationary collapse. Eg include the tail end of the roaring 20's followed by the 30's and the Weimar republic's hyper inflation followed by depression. By the early 80's inflation was running over 10% and then there was deflation by the mid 80\s. Central banks do not ever raise interest rates. They stop suppressing them and then rates go to market rates which are much higher than manipulated rates.

[biglentil]

It actually is the other way around:every hyper inflationary period is followed by deflationary collapse. Eg include the tail end of the roaring 20's followed by the 30's and the Weimar republic's hyper inflation followed by depression. By the early 80's inflation was running over 10% and then there was deflation by the mid 80\s. Central banks do not ever raise interest rates. They stop suppressing them and then rates go to market rates which are much higher than manipulated rates.

Hyperinflation is defined as prices rising 50% in one month. Inflation was running at a peak of 14% an annum in the early 80's still a far cry from hyperinflation. Using 1980's based CPI calulation methodology we are sitting around 17% inflation. The bubble CB's have created with their agregious abuse of the printing press for the past 50 years can't be sustained any longer. Their back is against the wall raise rates and cause a debt default crisis that would make the 2008 financial collapse look like kindergarten, or continue printing exponentially more which drives cpi ever higher. Neither course of action is conducive for a healthy economy and supply chain.

[errolanderson]

Horseback math, but the average recession lasts about 18 months. My two-bits, this recession will not be your average recession . . . possibly brace for the next 2 to 3 years of an economic contraction and deeper than most. Debt bomb has gone off . . . .

Geopolitical events (war) is a wild card . . . .

[Rareearth]

Best investment gic at 4.75% ???

When inflation is twice that, it is a retirement disaster. Have seen this many times over the years with friends, neighbours etc. They stay at home while others travel, remodel, vehicle purchases etc

[biglentil]

Horseback math, but the average recession lasts about 18 months. My two-bits, this recession will not be your average recession . . . possibly brace for the next 2 to 3 years of an economic contraction and deeper than most. Debt bomb has gone off . . . .

Geopolitical events (war) is a wild card . . . .

Rules of thumbs are handy in a normal environment but we are in uncharted territory. Fiat currency has an average life span of 40 years, this one is 51yrs old and is long in the tooth imo.

[TOM4CWB]

Rules of thumbs are handy in a normal environment but we are in uncharted territory. Fiat currency has an average life span of 40 years, this one is 52yrs old and is long in the tooth imo.

Negative GDP US report today-1.6%

3 hours ago — NEWS | 6/29/2022 12:34:47 PM GMT | By Eren Sengezer ... BEA revised annualized US GDP growth to -1.6% from 1.5% in previous estimate. US Dollar Index

[ajl]

Best investment gic at 4.75% ???

When inflation is twice that, it is a retirement disaster. Have seen this many times over the years with friends, neighbours etc. They stay at home while others travel, remodel, vehicle purchases etc

Best investment when compared with stocks (-20%) YTD, real estate estate just starting its decline. Canola was $27 now $19 and is the now below the cost of production. Pump gas prices starting to fall and will fall sharply once the long weekend is over. With inflation turning negative, +4.75 will look good.

[TOM4CWB]

Negative GDP US report today-1.6%

3 hours ago — NEWS | 6/29/2022 12:34:47 PM GMT | By Eren Sengezer ... BEA revised annualized US GDP growth to -1.6% from 1.5% in previous estimate. US Dollar Index

Cheers