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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (67308)	4/28/2021 2:57:58 PM
From: bruwin	1 Recommendation Recommended By Area51 Read Replies (1) \| Respond to of 78791

" .... it is printing money with the stimulus checks (which is real money in the bank for those who get them). QE did nothing for most people, but getting a check in the mail that you can deposit in your bank account and spent is something tangible that boost spending for sure." The problem is that only about 9% to 10% of the $Trillions for "Covid Relief" etc, actually went to that end. Vast amounts of the $Trillions went to "Bail Out" badly Run and Managed States, PLUS a lot of other "Payouts" that had absolutely nothing to do with "Covid Relief". And if those States don't change their "Bad Habits" they'll be wanting more in the future ........ Florida, for example, has a population of 22.2 million compared to New York state's 18.8 million. Yet Florida's budget to run its state is about HALF of New York's ..... $91.1Bil. compared to $177Bil. . Seems to me that Florida's State "Management" has a better grasp as to how to mange its Financial Affairs and shows what can be done to reduce its dependence on the Federal government, and hence the taxpayers.

To: Spekulatius who wrote (67308)	4/28/2021 4:11:31 PM
From: JohnyP	2 Recommendations Recommended By bruwin petal Read Replies (3) \| Respond to of 78791

I will make the case that inflation is already here, so far it was in assets like real estate and stocks, due to the unlimited QE, now you see it in commodities and it will not subside. Facts: The US has been running budget deficits since 2002 non-stop and at an increasing rate. Last year alone, income was at $3,5 Trillion with expenses being $8 Trillion! What is more, you now have a "Corona" bill of $1.9 Trillion and an upcoming infrastructure bill, as if we are still in the 1960s and the US needs more roads. These are non-productive use of funds that will not yield something back. The debt accumulated must be already at $30 Trillion. And I do not see the trend changing: bipartisanpolicy.org Of equal importance is the US trade deficit here: tradingeconomics.com , which currently amounts to $70 Billion per month! Dollars are leaving the country to pay for imported goods. At some point the creditors will demand a higher yield to keep buying more risky treasuries, but the Fed cannot raise rates much without bankrupting the federal government. The solution? Print more dollars, which will unavoidably lead to very high inflation. There are very interesting times ahead, but with this thread I am sure we can thrive as investors.