Hi Readers
It's interesting to see how the market are developing.
On the one hand we have Inflation at (5.4) try 12.2 in the US, but anyway and bonds are going up and so to is the stock market.
While everyone has there points of view I just look at the facts.
I look at what people need as apposed to how to store your wealth.
Gold , Silver, Copper are not commodities people need to survive.
Grains, Softs, Meats,Energy are the commodities people need to survive.
So when you look at whats going on and how to work out inflation these are keys I believe to measure.
Going by my simple Mathematics there all up over 20%, the good thing is that they do fluctuate and can go down.
But now we have the stubborn inflation which doesn't go down rent inflation, wages,utility bills.
Once these start they don't stop, and I've got news for the Fed they have started and are no stopping or slowing down.
Yes we will have deflation at some point but I don't see it until some point in late 2022.
Until then I only see inflation and its spreading yet the stock Market is pricing in Goldilocks conditions.
The Bond market can see whats coming and is preparing for a major shakeout.
Its fascinating to see how both camps have there own agendas.
With the hoax of the delta strain in the market, supply chains are once again slowing down production.
Which will increase prices to once again the consumer.
So while people are saving money with low rates, there actually pay double for goods.
Just so you are all aware suppliers of goods are passing on the full costs of increased raw materials.
While lumber has fallen some 50%from its high prices haven't come down of furniture, building costs or bedding.As you all know once prices go up they take longer to come down.
As for wages the FED are either stupid or haven't got a clue whats going on in the economy, Once someone get $20 per hour he's not going to accept anything less than that.
So how is the small business owner meant to pay those prices without put up there prices to cover the cost, exactly my point who is paying for it once again the consumer.
For those who don't understand economics.
You want the Fed to jack rates up by 2-3% you want to make sure inflation is in check, not in check where the Fed takes out one thing and adds another to balance out the numbers.
You need to kill off this asset speculation which is leading people into indebted position for life.
People spend when there bills are paid for if they cant afford they simply wont spend as is the case right now.With the Reverse REPO market, Banks simply have too many deposits and lot enough lending growth.
Protecting Wall Street Bankers and sacrificing the economy is suicide, for the American people.
If you want to see a sample size look at Australia.
The Reserve bank has bought up to 18% of bonds/Debt from states and federal governments, cut rates relaxed lending rules and Australia has 1.4 million properties vacant.
Investors buy and hold and right off the losses on the taxes while gaining on capital gains.
Medium House prices in Florida have gone up by 26% in 6 years.
Medium House prices in Sydney have gone up 78% and in Melbourne 72% in 6 years.
So you tell me if the Australia model works, it doesn't and the Australian model in the Japanese model.
Economy in Japan is 58% owned by the Bank Of Japan.
