Tell me there isn’t a strong correlation between the US coming off the Gold Standard in 1971 and Inflation. Without gold standard, CB were off to the races! Money printing was EASY.“Inflation is always and everywhere a monetary phenomenon.”– Milton Friedman(Chart: Pearson)
Is inflation intentional and a tactic to reduce the government’s debt burden? By decreasing purchasing power, the REAL value of existing debt is reduced. According to a report by Penn Wharton Budget Model, permanently increasing the current 2 percent annual inflation target
Is inflation intentional and a tactic to reduce the government’s debt burden? Read More »
Do you think the US can curb its spending and DEBT? If US truly wanted to contain it, what about implementing a Swiss-style debt brake? It would involve an amendment to US constitution. Will they do it? Doubtful but there is hope! What is a debt brake? The debt brake is a simple mechanism for
Our DEBT is UNSUSTAINABLE Read More »
Inflation (PCE) followed M2 Money Supply up and is following it down. About an 18m lag. When MS growth exceeds real output, you have inflation. Too much money chasing too few goods. However in 2008, money base was increased but did not increase M2 due to swapping bonds for reserves. (Increased their reserve ratio) Therefore,
Money Supply M2 & Inflation Read More »
Most corporate bankruptcies (over 400 2023 YTD) in consumer discretionary. not surprising as margins compressed plus demand reeling in as people are cut back. the consumer has spoken. higher cost of debt and capital PLUS higher cost of goods. most corporate debt for larger
Most corporate bankruptcies (over 400 2023 YTD) in consumer discretionary. Read More »
And we don’t think there could be a huge supply of homes coming to market even though they are “locked in” to low rates? I have specifically said this since last year. It does NOT matter how low your rates are if you can’t pay due to inflation & elevated costs and being laid off
As higher cost of debt and capital persistent (even remaining at this level with no increase), many businesses esp small have much higher capital costs that decrease margins further causing tough decisions. Fold or be acquired at a discount? Consolidation or bankruptcy.
Recession is imminent per the article below & more importantly my discussion today with one of the top economists @steve_hanke Yes I had the high honor of speaking with one of the best on @TheROShowPod stay tuned! https://fortune.com/2023/06/15/economy-recession-federal-reserve-powell-deutsche-bank-hard-landing/amp/…
#CRE next to be seriously challenged. I have been saying this for a while. #CRE loans are much SHORTER term so must be refinanced at much HIGHER rates! Mix that with much LOWER CF from HIGHER vacancies esp office! Defaults anyone?!
• Money supply growth exceeding real economic output = inflation! • It wasn’t war or other, otherwise we would see price increases in ONLY select sectors. It was ALL prices rising due to mass MS growth!• LT inflation expectations at 3%?!• Recession needed to bring down
• Money supply growth exceeding real economic output = inflation! Read More »
