US Inflation and What To Do About It Message Board

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Strategies & Market Trends : US Inflation and What To Do About It

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To: Real Man who wrote (1172)	10/8/2019 11:22:37 AM
From: RetiredNow	Read Replies (1) of 1504

They aren't printing enough YET to cause hyper inflation. But if you have been watching the election promises from the left, they are gargantuan. Couple that with their belief in MMT and you have a toxic brew. In addition, Trump is already running $1 trillion deficits and that has desensitized and silenced Republican fiscal conservatives (except for me). This all leads me to believe we are entering that phase of deficit spending where we start to go vertical and the debt goes vertical, and then the interest we pay goes vertical, then the money we print goes vertical, and then it all feeds on itself to hyper inflationary oblivion. During that entire process, everyone from the left and right will pretend like it is not happening and that it's no big deal and that people like me should stop worrying. Well, I'm a student of history. It can and will happen here unless we change course. As for nothing much would change if the Fed is eliminated, I couldn't disagree more. The very first thing that would change is that rates would be determined on the free market based on risk and reward, supply and demand. It is not normal for us to have watched rates drop consistently over the last 35 years and end up now almost now to the lower bound. That screams manipulation by the Fed to drive rates below what the free market would price them at. Think about the massive malformation of the economy as a result of the constant and steady stream of stimulus from rates priced below market for 35 years. We have the mother of all bubbles in debt and now $17 trillion of worldwide is negative yielding across all the central banks. If something is illogical and you think it can not last, then likely it will not last. No one can predict the timing and the Fed can hold things together for much longer than we all think, but eventually they will lose control and this beast will begin to correct in ways that will bankrupt many people. I'm trying to get out of the way of that scenario. In addition, I will continue to harp on the Fed in the very fleeting hope that other smart people will see what a mess we're in and see the wisdom of what Ron Paul called for his entire career.

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