Several people have written to CTH for an economic review of our current status. Below this post are two primary precursor articles [Primary One and Primary Two] which outline the economic dynamic in play and how we can look forward with accuracy to what is likely to happen. Despite the deflective talking points by the professional financial pundits this massive spike in inflation is entirely predictable due to Biden economic policy and Biden monetary policy.
Keep in mind the FED has already said in April they would “support inflation” but that’s because while they will not say it openly they know there’s no way to stop it. The massive inflation is a direct result of the multinational agenda of the Biden administration; it’s a feature not a flaw, and it has nothing whatsoever to do with COVID. Also keep in mind the first group to admit what is to come are banks, specifically Bank of America, because the monetary policy is the cause.
There’s no way around this. Despite the pundit and financial class selling a counter-narrative, home prices will crash and unemployment will go up. I know this is directly against the current talking points, but the statistical reality is clear. CTH was the first place who said two months ago that home sales will plummet, that is starting to happen right now. There’s no way for it not to happen, the big picture tells us why.
You might remember when President Trump initiated tariffs against China (steel, aluminum and more), Southeast Asia (product specific), Europe (steel, aluminum and direct products), Canada (steel, aluminum, lumber and dairy specifics), the financial pundits screamed at the top of their lungs that consumer prices were going to skyrocket. They didn’t. CTH knew they wouldn’t because essentially those trading partners responded in the exact same way the U.S. did decades ago when the import/export dynamic was reversed.
Trump’s massive, and in some instances targeted, import tariffs against China, SE Asia, Canada and the EU not only did not increase prices, the prices of the goods in the U.S. actually dropped. Trump’s policies led the largest deflation in consumer prices in decades. At the same time Trump’s domestic economic policies drove employment and wages higher than any time in the past forty years. With Trump’s policies we were in an era where job growth was strong, wages were rising and consumer prices were falling… The net result was more disposable income for the middle class, more demand for stuff, and ultimately that’s why the U.S. economy was so strong.
♦Going Deep – To retain their position China and the EU responded to U.S. tariffs by devaluing their currency as an offset to higher prices. It started with China because their economy is so dependent on exports to the U.S.
China first started subsidizing the targeted sectors hit by tariffs. However, as the Chinese economy was under pressure they stopped purchasing industrial products from the EU, that slowed the EU economy and made the impact of U.S. tariffs, later targeted in the EU direction, more impactful.
When China (total communist control over their banking system) devalued their currency to avoid Tariff price increase, it had an unusual effect. The cost of all Chinese imports dropped, not just on the tariff goods. Imported stuff from China dropped in price at the same time the U.S. dollar was strong. This meant it took less dollars to import the same amount of Chinese goods; and those goods were at a lower price. As a result we were importing deflation…. the exact opposite of what the financial pundits claimed would happen.
In response to a lessening of overall economic activity, the EU then followed the same approach as China. The EU was already facing pressure from the exit of the U.K. from the EU system; so when the EU central banks started pumping money into their economy and offsetting with subsidies they essentially devalued the euro. The outcome for U.S. importers was the same as the outcome for U.S-China importers. We began importing deflation from the EU side.
In the middle of this there was a downside for U.S. exporters. With China and the EU devaluing their currency the value of the dollar increased. This made purchases from the U.S. more expensive. U.S. companies who relied on exports (lots of agricultural industries and raw materials) took a hit from higher export prices. However, and this part is really interesting, it only made those companies more dependent on domestic sales for income. With less being exported there was more product available in the U.S for domestic purchase…. this dynamic led to another predictable outcome, even lower prices for U.S. consumers.
From 2017 through early 2020 U.S. consumer prices were dropping. We were in a rare place where deflation was happening. Combine lower prices with higher wages and you can easily see the strength within the U.S. economy. For the rest of the world this seemed unfair, and indeed they cried foul – especially Canada.
However, this was America First in action. Middle-class Americans were benefiting from a Trump reversal of 40 years of economic policies like those that created the rust belt.
Industries were investing in the U.S. and that provided leverage for Trump’s trade policies to have stronger influence. If you wanted access to this expanding market those foreign companies needed to put their investment money into the U.S. and create even more U.S. jobs. This was an expanding economic spiral where Trump was creating more and more economic pies. Every sector of the U.S. economy was benefiting more, but the blue-collar working class was gaining the most benefit of all.
♦ REVERSE THIS… and you now understand where we are with inflation. The Joebama economic policies are exactly the reverse. The monetary policy that pumps money into into the U.S. economy via COVID bailouts and federal spending drops the value of the dollar and makes the dependency state worse.
With the FED pumping money into the U.S. system the dollar value plummets. At the same time JoeBama dropped tariff enforcement to please the Wall Street multinational corporations and banks that funded his campaign. Now the value of the Chinese and EU currency increases. This means it costs more to import products and that is the primary driver of price increases in consumer goods.
Simultaneously a lower dollar means cheaper exports for the multinationals (Big AG and raw materials). China, SE Asia and even the EU purchase U.S. raw materials at a lower price. That means less raw material in the U.S. which drives up prices for U.S. consumers. It is a perfect storm… Higher costs for imported goods and higher costs for domestic goods (food). Combine this dynamic with massive increases in energy costs from ideological policy and that’s fuel on a fire of inflation.
Annualized inflation is now estimated to be around 8 percent, and it will likely keep increasing. This is terrible for wage earners in the U.S. who are now seeing no wage growth and higher prices. Real wages are decreasing by the fastest rate in decades. We are now in a downward spiral where your paycheck buys less. As a result consumer middle-class spending contracts. Eventually this means housing prices drop because people cannot afford higher mortgage payments.
Gasoline costs more (+50%), food costs more (+10% at a minimum) and as a result real wages drop; disposable income is lost. Ultimately this is the cause of Stagflation. A stagnant economy and inflation. None of this is caused by COVID-19. All of this is caused by economic policy and monetary policy sold under the guise of COVID-19.
This inflationary period will not stall out until the U.S. economy can recover from the massive amount of federal spending. If the spending continues, the dollar continues to be weak, as a result the inflationary period continues. It is a spiral that can only be stopped if the policies are reversed…. and the only way to stop these insane policies is to get rid of the Wall Street democrats and republicans who are constructing them.
Hope that makes sense, and love to all.
~ Sundance
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Remember colonies export commodities. Every major war America has fought was because of forced colony status. Think the Revolutionary War was about freedom? Hah; England was denying the “Colonies” the ability to build factories. Same for the Civil War although there it was the North denying the South ascension beyond the status of commodity supplier. WWII? Japan only attacked when the USA cut off steel exports. This time it is China that is pushing the imbalance. Trump’s brilliant economics team where waging an effective war without armed conflict; ChinaBiden has ended that and left us with few options.
With the middle class now starting to feel the pain of globalist meddling we are entering a very dangerous period.
A bit more accurately… we are well along in that dangerous period.
Reagan ‘ended’ the Cold War (WW3) with the Soviet Union, by defeating them ECONOMICALLY; weopons systems was simply the VEHICLE.
HE knew that a conmunist system is inherently less efficient than a capitalist system, and that, when put into a head to head ECONOMIC contest, Conmunism will lose, every time.
Conmunism can NOT compete, whether in the marketplace of goods/services, or in the marketplace of ideas.
And the CCP watched, took notes and learned. Its no coincidence the paper written by two colonels in the PLA, now accepted as doctrine by the CCP, was written soon after the collapse of the Soviet Union.
Recognising, at the outset that China can not defeat America militarily, it details a variety of assymetrical warfare techniques to defeat us;
Yes, it lists biologic warfare, and even an EMP attack, but primarily focuses on ECONOMIC warfare, to “prepare the battlefield”.
PDJT clearly saw what China was doing, and had a clear plan to counter their aggression.
Unfortunately, China countered him, through having infiltrated/corrupted both halves of the Uniparty, the Media, Acedemia, the Deep State, etc. and engaged in ongoing propoganda and psy-ops campaigns.
And, of coarse there was their A bomb, Covid. A “Con”, a manipulation of astronomical proportions, the biggest military deceprion since the Trojan horse, I am disappointed that PDJT “fell” for it, and yet I understandand accept that there was nothing else he could do, really.
Convinced as I am that the vaccine is far worse than the disease, it frustrates me to hear him continueing to ‘tout’ its rapid development, but again I understand they have him “boxed in”; there is no way, practically that he can NOW say “it was all a big CON.
But it was,…
It was communication that defeated the Russians. Once they allowed the facts of how the west lived and what they owned and how they lived their lives and the people compared that to how they were living the Russian citizen began to realize that for all that they still had further to go and the west had yet to attack them. So they now understood the lies and that they were being deprived (while the top party leaders were not) and to little effect they began to get. . . restless and began demanding answers why and when it would get better and why aren’t they doing more to make it happen faster.
And in Poland they realized that the world was watching and that it had changed from when Moscow sent tanks into Czechoslavakia in the 50s and poland later on and that they had the upper hand morally.
They saw that Reagan was a righteous man and would not allow the Russians to send tanks in as before so the Russians keep giving in until they finally gave up.
This is probably what will happen here. Slowly people will realize that those in power (left or right) have lied, cheated and stole while in power and done little to make things better. In fact they’ve made things worse year by year and now they’re going to try and intimidate the citizens as if we were the enemy?
That’s not gonna fly with even the most brain numbed mask wearing fool out there.
It was/is an ACT OF WAR, with a Bio-WMD!
Respectfully I ask, fell for what?
He said it was started in a Chinese lab but then “our” side forced him on massive overreactions.
He fought for the people day and night with both hands tied behind his back, impeachments and his own military bombing things and telling him AFTERWARD. The betrayers and all the non stop hell they put him through.
Yet he ALWAYS stood by listening to what REAL PEOPLE needed.
That is why the Twitter Goons, faking to be on the Right, or at least “fair weather friends” led by the likes of Mike Cernovich and Scott Adams the Dilbert guy, plus FOX noise SHRIEKING and DEMANDING that Trump do MASSIVE and ridiculous overreaches were pretty much what he had to do.
Even then he did use the national defence emergency powers to get things like ventilators which as soon as he produced they all NEVER thanked him for, then shrieking to the next demand but STILL made sure everything was STATE led.
He provided support, and coordinated with the governors, but religiously let the governors lead the way.
Then “our” side was SHRIEKING and DEMANDING that Trump do the overreactions that eventually the Left decided to go all in for and use to fake the election as well.
Eventually, Trump just quit listening to the demands of Mike Cernovich for example. So now that mental case is spouting non stop Trump hate, hiding as a “house husband, stay at home dad” in his home and tweeting about his visions and experiences with aliens under the influence of a hardcore hallucinogen from the Amazon called Ayahuasca that makes you trip for days as fluids, excrement and vomit come from every orifice.
Scott Adams the Dilbert cartoonist who PROMISED that if Trump didn’t give in to his demands (which started with the travel ban which was a good move but afterward included crazy a$$ sh!t) then he was going to go all in attacking him is only slightly better. But let’s be clear, Adams is also a total nut. Cernovich’s partner in shrieking us into total panic, Mr. Adams, then started posting videos about how we are in a computer simulation and he is the one with the code. Yes, he tried to get his own cult going too but that stuff just kind of fell flat.
So I don’t blame Trump.
He needs trustworthy support. And all we have is infiltrators getting in that circle, unfortunately.
Trump is the only president we have ever had who tried to go past the globalists to helping real people at every turn, with everything he did.
His whole strategy was a “let every boat rise” mentality.
Very much what the base has always wanted. We never hated “the rich.” Go be rich. Let me have avenues to success too. Let us all have good lives and if some are better in some ways than others, that’s fine. But he really was great because he aslo didn’t want people who can’t do fall through the cracks. He was working just as hard for disabled and disadvantaged. As he said “we also have to have a heart.” And that is beautiful.
And he even had Peter Thiel trying to help fix this gamed system.
But the overlords shut us down and will only allow a system where we are impoverished and under their thumbs as they alone enjoy total, utter, boot stomping in your face power.
Neo serfdom, neo slavery, povery and controlled hell for all but the satanic power mad uber elite.
So what happened is normal people in the case of the COVID overreaction (I can’t remember every normal person who could see that we were overreacting but it included Candace Owens but there were other more seasoned radio hosts too who kept getting blocked and taken down) got drowned out by Chicken Little Pants on Fire Screechers like Mike Cernovich and Scott Adams.
Adams isn’t all bad, but in the end, on the side of evil. Sorry to say this but it’s true. He saw the Steal coming. He realized that when they disappeared the Hunter story the info stranglers were gearing up to hide an election. He made it clear.
Then when it happened he decided it was best for the country if we the little people outside his gated walls never voted again and even our judiciary and Supreme Court scr3wed us over. Colluder.
As for Mike Cernovich, he is actually deranged so that guy is just not good.
However, what has emerged is that currently for the moment, we have some positive developments. The likes of Bannon and all the amazing talent he is discovering and promoting, totally the way Andrew Breitbart did in his life.
Jack Posobiec is really doing great things, a true brilliant talent.
Who saw the heroics of the My Pillow guy coming? Not me!
RSBN, alt tech, Steve Turley (obviously here, Gateway)… you know many good things.
We will re-emerge.
But yeah we had some fair weather friends who outshrieked the normals.
So that’s another thing to fix.
+1,000,000.
It irks me to no end the ignorance of some people who think in the face of all the so-called Ex-Spurts screaming and lying about “VACCINES!!” AND hiding the truth of the origin of the WUHAN VIRUS they think Trump should have done what hindsight tells up to have been the better path.
DJT is not a virologist. In case you’re not aware, he was a builder before he was elected President.
HE ACTED ON WHAT HE WAS TOLD BY THE SOCALLED EXSPURTS.
All things considered, he did a MAGNIFICENT JOB considering the traitorous snakes and lying scum like FOWCHI he was surrounded by.
Besides, he just pushed out the vaccine due to public demand AND FOWCHI’S lying scummery. It’s Pedo Joe, the Scranton Village Idiot that’s shoving it down everyone’s throats.
Good point. Especially about “The War of Northern Aggression”.
See: https://www.capitalismmagazine.com/2002/04/do-states-have-a-right-of-secession/
Note the Mencken analysis three paragraphs from the “Editor’s Comment.”
Note, too, Williams was/is an Economist!
Since reading a Ecclesiastical/Sociological take on the Civil War in Divinity School (“Divided Church Divided Nation”) I realized both sides in that war regarded themselves as the Heirs to The Founders’ Principles and the other The Tory Tyrants.
I always thought The Confederacy had more cogency on their side of that specific contention.
Williams, and now you, in a brilliant and new to me argument, adds weight to that side.
Also, The Mitrokhin KGB files and Venona Intercepts
have proven how deeply into The Kremlin’s Pocket the Red Frankie Russiafelt’s admin was.
I am certain FDR manipulated Tojo and the American People in to a War not in America’s Interests in order to save “Uncle Joe.”
Also, the Souherners were essentially Anti-federalist in their outlook; the North were Federalist. It was always an uneasy partnership.
And it was the big banking, aristocratic, industrial, densely populated, child-labor North (their slaves of the day) that tried to strangle the South with tariff policy.
Look at the players…It’s the same people now.
The Anti-federalists wanted to be left alone, and were distrustful of big government. The North wouldn’t leave them alone.
Sound familiar?
Ummm- unless you are to say 100% OF THE FOUNDING FATHERS were simply trying to build factories, I think freedom had an itsy bitsy maybe .ooooooo1% something to do with the Revolution
nsurrection Day (?) in January becomes Resurrection Day in June. What they called an uprising in Washington became a rising-up in Wellington yesterday:
“What happened to us on November 3rd should never, ever happen again, should never be allowed to happen again.”
“We won the election twice, and it’s possible we’ll have to win it a third time, it’s possible.”
“Then they say Trump lost Pennsylvania. It is not possible. We had 58,000 people in a beautiful, small community in Pennsylvania show up on a couple of days notice….And they say Trump lost in Pennsylvania. No, I don’t think so. All you have to do is look at every stat. It is all coming out now. People are coming forward like never before….you soon will see what is happening…”
“The biggest tragedy of all is that millions of a Americans have lost confidence in their votes. We can not let that happen. That is why I say, you have to know what happened in 2020 before you can vote in 2022 or 2024…….We will never stop fighting for the true results of this election.”
“They don’t want to talk about certain things. You know what they especially don’t want to talk about, election 2020. Because it is just too close to home..”
The crowd then chanted [Trump Won] [Trump Won] [TrumpWon]! Nothing has really changed all that much in the heartland, Donald Trump is still our President.
No wonder “they” pulled out all the stops to get rid of Trump. Getting caught for a fraudulent election is far less of a problem than if Trump were re-elected and his policies were to continue. Easy choice. Besides, “they” know that not a single one of them would be prosecuted even when caught red-handed.
Interesting I just received an email from a good mate of mine that happens to a fairly successful financial planner. ( We don’t use him, and do our own modest investing)
The email knocks the doomsday predictions and points to the S and P being up 14% or so, and our Canadian TSX Up 16% or so.
It sure seems like a big bubble to me..we’ll See though.
Cheers to all.
All the big financial minds I follow say they same thing “we are in a bubble of everything”
A word on home prices… at least in the northeast, a combination of the skyrocketing costs of building supplies and the fed financing blackrocks home buying spree, these are keeping prices higher currently. Not sure for how long but plywood sheets are 90 bucks now used to be like 15-20.
Interesting
Thank You, Sundance. Still getting expanded ‘larnin’ here at CTH. MUCH appreciated.
Agreed! Another insightful, well-written article from Master Jedi Sundance.
Sundance, sincere thanks for all you do. #RedPills’R’Us.
Destroying the American middle class and way of life is part of the globalist agenda. They need the sheeple to be compliant and dependent on the government. Despite the huge debt, deficit and unfunded liabilities the government will continue to grow and become more powerful in our everyday life. It’s us little people that will have to live with less and pay more. Now that they have fixed the ballot box so they can’t lose all they need is a submissive citizenry. This is an agenda driven administration and they don’t give a hoot about the people. And their media accomplices will make sure and report what a great job the JoeBama Administration is doing.
All the bad values, and downright horrors are at the very top and very bottom.
90% of Americans called themselves “middle class” at least up to the Obama Debacle.
All good values are in the middle class. If your life is thieving, scheming, robbing and killing and you have 3-7 baby Mamas you’re trying to avoid you’re in the Hunter Biden crowd or gang territory of the ghetto. Either way, it’s the overlord values that have infested or trapped and destroyed you.
So now along with CRT they are actually openly saying they want to destroy “middle class values.”
Middle class values are the values of every stable people of every ethnicity worldwide. Family, education, entrepreneurship, tradition, God, and on and on. They want to call it white when it is central to the success of Asians, Jewish people, African Americans not trapped in their cycle, obviously Latinos and so forth. This is for everybody and they know that.
Beelzebubs abound. Satan’s godless minions are relentlessly trying to attack the people so normals have to step up too.
They want moral decay and us to be trapped, and they’re good at it. If you need proof drive by any place controlled by vote stealing Dems the last 70 years or more.
California recently was rated for levels of “income equality” which was now at the same level as the Congo and a few other 3rd and 4th world hellholes.
You can have loads of fun when you are not impoverished and unstable. Then you can help those that need it if YOU are not drowning. So to counter these good things they’re just spreading chaos, decay of standards, and hell as all satanic devillish overlords always do.
They’ve made their neighborhoods illiterate and are now going after math for God’s sake.
That’s money. That’s making sure no trapped minority can even count and add their way out of poverty either.
That’s how you did slaves in every other century, that’s how you do it.
Evil.
Thank You Sundance, Well put and easy to understand. It builds on your years of educational articles on the economy and how PJT went about getting elected and the fruits of his policies for the US Economy.
People, pick up the phones and just call your reps ad nauseum. The pressure MAKES THEM ACT. It does. Look at the groundswell on the Election Audits. Just Do It, and Stop buying NIKE!!
Just bought two sets of running shoes and at both locally owned stores, not a single pair of Nikes was even brought out to try. I found that interesting since neither salesperson seemed particularly political. Their thing was running 25 miles or more a week, hence why we shopped local in the first place instead of a chain store.
Maybe Nike just makes crummy running shoes for flat feet.
I looked at the shoe tongues and all were made in Vietnam. Bought a nice pair of Brooks and another Saucony.
We are two generations that will NEVER buy Nike again.
All part of their Agenda 2030. Price the middle class out of home ownership and push them into renting. By 2030, the elites want to own everything and we will own nothing and be “happy”. https://sdgs.un.org/2030agenda
Touche’
Just give Agenda21/30 a read. Ratified in Rio in 1994.
George ‘Poppy’ Bush signed UN’s Agenda 21 New/One World Order in 1992, right before he left office. The bastard. It’s all been downhill ever since.
The middle class taxes pay the rents. It’s called section 8/ HUD funding. So when the USA middle class goes belly up and the global economy implodes, who will keep the roof over their heads then? Will we all live under bridges?
Exactly. Middle pays all the bills. Suffers under the bad deeds and crimes of the trapped slaves AND mega elite.
And now they’re trying to kill this golden goose too.
Every totalitarian hell has only 2 classes (elite and neo serfs) so they think that will work here too.
Now when you pay all the bills you won’t even have a little piece of the pie to leave the kids to make it all worthwhile or that ever shrinking vacation and retirement time.
Serfs/slaves had no retirement either. Full circle with the regressives plans for us.
I would like to see everyone who voted for Biden, suffer massive financial consequences – lose their job, lose their retirement, lose their savings. Unfortunately his voters are either dead, on welfare, government workers, or wealthy.
Millions of them don’t actually exist.
Yes, Bobby Piton is is still working on this, and now has some other mathematician/statistician help.
Or just stupid and shallow, like my neighbor, voting for the “Not Trump”.
It is my fervent wish to see God’s will be done. I will not question how we get there. But I’m not looking forward to this at all.
Lulu, your comment reminded me of a comment in the Texas newspaper, The Austin Statesman.
The prices of homes in Austin had been rising and the taxes were continuing to increase after the “blue state locusts” had begun to swarm my beloved state!
The woman commenter began by explaining that she had moved to Austin from California because she could not afford to live there any longer.
Then she explained that she was a VERY responsible citizen – why, she voted for ALL the bond issues regarding improving Austin!
And by golly, she was almost hysterically upset, because, after all her years of being a good citizen helping to improve the city with her votes, her taxes had increased to the point that she was going to have to move! How DARE they!
And now you know why they want math to be racist!
Just so nobody thinks that graph isn’t so bad, remember it’s the precent of change. Which means that the prices keep going up and the value of the dollar goes down it’s just that up till lately the CHANGE hasn’t been that drastic. But the cost of goods and thus the eroding of the value of the dollar has been steadily going down.
I love how the government finds so many interesting ways to fool the people. Even tho they don’t teach our children how to think and how to understand how to think and to be aware of what exactly people are telling people or showing them with a graph. And of course there will be some who do and some who do and get upset about it but those numbers are low and the government does it’s best to keep those number low cause if enough people started to realize what’s happening then the pols would be looking for homes on the nearest military base.
The political hacks are already behind barbed wire and gates. My RINO packed up and got outta Dodge pronto. He obviously knew what was coming.
My wife recently retired, I am planning on retiring in a year or two. If inflation is severe, that could really put a crimp on retirement plans. My big question is, where to invest our savings. I am very worried about the stock market, but maybe my worries are unfounded. Maybe the markets will continue upward as inflation increases? It seems the safety of a simple savings account would not even come close to keeping up with inflation. Where is a safe haven?
There is no safe haven!!!!
Money will eventually have no value at this rate. Cash will not get you far. Savings account will be irrelevant.
Think wheelbarrows of cash for a loaf of bread in Nazi Germany.
Stock up on guns, ammo, food, supplies of all sorts, medicines, pet food, seeds, tools, repair equipment, anything else you might need to survive without money, electricity, or help from the government.
Know your neighbors. Have a garden. Learn to barter. Be self sufficient in as many ways as possible.
AMK…..not NAZI GERMANY…BUT WEIMAR REPUBLIC(1919-1932)
Yep, thx, I knew I wasn’t quite right when I said it… Thank you for the correction!
But there wasn’t a Ge4man central bank during Weimar, the gov’t directly printed the money.
I don’t know if that’s an asset or a liability.
My humble thoughts…’they’ don’t want us to use a savings account. ‘They’ opened the stock market to the little guy and made it ‘affordable’.
We had to accept ‘risk’ in the hopes of ‘making money’. And to do that, ‘they’ offered up the idea of “diversification” for a limited amount of safety for our ‘investment dollars’.
What ever could go wrong?
You know, for an Aggie, you’re just pretty danged smart! Sorry, couldn’t help myself! I wear red and black a lot… LOL.
There are no safe havens.
I consider property to be a safe haven. Even if the value drops to nothing, at least it’s still a roof over your head.
Good point.
Buy dirt.
I retired in 2010. Two years earlier,I could get 5-6% on a one-year CD…. Safe money.
I had saved my money, lived beneath my means, and sacrificed to do it. Drove a 10 year-old car. Cleaned my own house, mended my own clothes, cooked my own food.
The thing that saved me in 2008 was that I had cash in my 401K. Not like many of my friends, who were close to retirement, then got laid off because they were the oldest employees (and often the most productive), and were stuck with devalued IRAs and 401Ks. Double whammy.
Since 2008, seniors like me have been hammered. Can’t catch a break. I have a little house outside the country, where I’ll go and hang out for a while. I can put a container garden and chickens on my flat roof. 3xchange seeds with neighbors, most are heirloom seeds. Might tend rabbits, too.
I feel sorry for older people. They just want us to die.
I know.
But WE are with you and GOD is for you
And don’t forget, they kill babies and poison kids too, now even forcing kids who don’t need it in their Herr Joseph Mengels like vaccinations so they just HATE humans. So it’s everyone.
I cannot name a group whose life they are not trying to shorten and destroy. But it will NOT work.
You are blessed:
“With long life will I satisfy him, and show him my salvation. with long life. Psalm 21:4”
When the currency is made digital, there won’t be savings. You will have a certain amount of time to spend your credits on approved items before they delete it from your account. It’s what they’ve always planned so the peasants can’t build wealth i.e., independence.
From SD’s “starting to happen right now” hyperlink ⬆
“The new home sales report often sees very significant revisions in subsequent months following the initial estimates. The U.S. Census Bureau noted that the change in new home sales between March and May could be 18.6% larger or smaller than what it is currently reporting, a wide confidence interval.”
…
Not 4%
Not 8%
18.6% ?
“Annualized inflation is now estimated to be around 8 percent, and it will likely keep increasing. This is terrible for wage earners in the U.S. who are now seeing no wage growth and higher prices.”
-SD
Imho, it is unlikely The U.S. Census Bureau expects new home sales to “Increase” 18.6%.
Sundance, your economic summation makes perfect sense. It breaks my heart to see Americans buy in to this insane economic policy now being instituted by Biden and the Democrats. You don’t mention the stock market here. Inflation is the enemy of the equity markets and, sooner or later, there has to be an impact. Certainly, millions of Americans have 401Ks and other investments in these markets. I certainly do, and have for the last 36 years. When, not if, the economy slows down it would behoove the astute investor to become defensive before the next severe downturn. Keep a vigilant eye on these markets for advanced indications. Volatility is key. As far as real estate is concerned is is prudent to maintain as low as a mortgage obligation as one can. Paying off a primary home is paramount if possible. This is no time to speculate……
Actually banananomics – the economics of a banana republic.
Thanks Sundance.
Great insight.
Thanks for the post, Sundance.
I agree with you that it is the the policies of the current WhatsMyName administration. In addition to the points you made, may I make a few more:
1) From a definition standpoint, FISCAL policy is the policy of the US Government while MONETARY policy is the policy of the Federal Reserve Bank – a quasi independent body. The Federal Reserve Bank determines the money supply and influences interest rates – most specifically, short term interest rates. In recent times, the Federal Reserve Bank has not just been influencing short term rates, but it has also been influencing long-term rates by purchasing $120Billion/MONTH (!) of government debt and mortgage debt, thereby flooding the market with dollars.
2) It is the INTENT of the federal government to create inflation. They want to flood the market with trillions of dollars and they know they cannot pay back the trillions – so the only way out is to pay back the debt with CHEAPER dollars. Hence, the REAL interest rate that one gets from buying savings bonds, Treasury securities, or savings account is a NEGATIVE REAL interest rate – that is, the dollars you get back in the future buy less. This is INTENTIONAL.
3) The reason for the above is that the actual policy aim of the WhatsMyName party is to get the lower and middle classes addicted to government spending so that they think that any nominal gains in their wages is due to the government’s policies and not the free market. Most people do not fully realize that the nominal gains are actually negative gains given the inflation. So the voters vote in the same idiots who created the problem in the first place.
4) What both Reagan and Trump did was to rely on free market (truly free markets) to increase economic output, and the Federal Reserve (in both cases) ramped up interest rates. The result was a rush to dollars – investors were rewarded handsomely with REAL positive returns, unlike today. The rise in the dollar value contributed to deflation.
5) There is another aspect of the WhatsMyName’s policies – the so called climate change issue. Solar power, wind power etc. are not competitive economically when oil is below $100/barrel (or $4/gallon). They need oil to be above $5/gallon for those alternative sources to become economically attractive. (BTW, this has nothing to do with saving the earth, but has everything to do with making certain people very very wealthy – look at Al Gore who made over a billion dollars from this racket.)
Net net: it is the combined policies of the JoeBama administration and the weak-kneed Federal Reserve that are creating, and will continue to create, higher inflation. Where that ends, only God knows.
From SD’s “Primary Two” hyperlink ⬆
“A new Bank of America report predicts consumer prices will continue to soar for up to four years, as the Federal Reserve’s preferred measure of inflation hits its highest level in three decades.
In a note on Friday, BofA’s top strategist Michael Hartnett predicted inflation will remain in the 2-4 percent range over the next two to four years.
U.S. inflation has averaged 3 percent in the past 100 years, 2 percent in the 2010s, and 1 percent in 2020, but will annualize at 8 percent in 2021, Bofa predicted in the note.
It was ‘fascinating so many deem inflation as transitory when stimulus, economic growth, asset/commodity/housing inflations (are) deemed permanent,’ Hartnett wrote.”
https://www.msn.com/en-us/money/markets/america-is-warned-to-brace-for-up-to-four-years-of-rising-inflation/ar-AALsdex
Gold and silver are the traditional hedge against inflation. If you can, and it isn’t outlawed by the current communist regime, hedge your bets and buy gold and silver.
Don’t buy a piece of paper that says you have “shares” of gold and silver. Buy the real coins from a reputable dealer, as they are easier to store and later to barter for goods and services.
They aren’t safe if there’s nowhere to sell them when the time comes. You can use them for barter; silver for groceries, gold for assets. But only if someone else thinks that he can sell it for what he needs, or there is a robust local barter market.
This requires thought. Maybe buying a good, diesel-powered reliable tractor that you can rent out and for which you can buy spare parts and store diesel (very stotable, unlike gasoline), a roto-tiller, chicken feed, something that will allow people to be resilient. Generator. Etc.
They can be used for purchasing goods and services as long as goods and services are available. If there are no goods available for market your gold and silver is as useless as the dollar.
Please Lord restore our rightful President, President Donald J Trump before we all slide away in the swamp ooze.
Thank you Lord, Amen!
Great overview as always Sundance.
Is the shoeshine boy talking?
We are not in a bubble, we are in a Mania!
When you start hearing from people in the Grocery stores, Dentist/Doctor offices, people you work with who never talk about markets suddenly start talking stocks, those are signs of a Mania. The shoeshine boy.
”Those who don’t to study history are doomed to repeat it. Yet those who do study history are doomed to stand by helplessly while everyone else repeats it.”
I have a present early warning signal (June) in regard to the DJI futures. These warning signals have an 80% accuracy as to timing.
IMO, The Stock Market is being heavily manipulated, coordinated by the Federal Reserve Central Bank and the United States Treasury. The two are Globalist, Wall Street, Multi-Corporation Fascist.
Trump and MAGA is just the opposite. Trump/MAGA are Main Street. Had there not been a Trump in 2016, we would already be a Venezuela. If they are not defeated NOW and look at their progress in just 6-months. We will be a Venezuela by 2024.
People who are talking about Trump running in 2024 have their heads up their rears. In fact, it is what the Communist/Fascist/Democrats want the American people to think.
There is no Constitutional United States by 2024 at this rate. They presently have the; Congress, Senate, Supreme Court and Presidency. What they lack is enough American people and this can be done by what is already being done; Indoctrination, Propaganda and Force….look at who presently goes to jail and who does not go to jail. January 6 a perfect example.
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What if all the shareholders (taxpayers) in this company (U.S. Government) stopped investing (paying taxes)?
Wouldn’t the company go bankrupt and be put in receivership to be presided over by the whom the shareholders chose? (Hint, hint: he just held a huuuuge rally . . .)
Dissolve the corporation, revert to the Constitution, and Make America Great Again!
The vast majority of tax payers have income taxes taken out before they get their pay check since the government forced employers to be tax collectors.
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Income tax is but one stream of revenue.
All tax payments need to be re-examined and avoided to the fullest extent possible (e.g., arrange to barter rather than pay sales tax).
Every stakeholder can make an impact — it just might not take the exact same method . . .
Plus the IRS has leverage over the banks, so sooner or later they will ensure you pay the piper. In the meantime, the absence of your tax dollars will only cause them to print more.
It would work of course, but over the years (since 1913) the people have been “conditioned” to pay income taxes. Look what little time it took to condition people to wear worthless masks.
You need the unison of the masses and there has not been enough people feel the necessary real “pain” yet.
IMO, it is why the Federal Reserve Central Bank and United States Treasury are manipulating the Stock market. They are doing all they can to delay the inevitable felt pain while they get their Communist/Fascist/Democrat policies entrenched.
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They are dummies —believing that if they wrack up enough wealth, inflation will not hurt them . . .
Yes, it is the dummies (“Useful Idiots”). Though Covid is real, look how easy it was for the masses to be convinced to fanatically follow hoax solutions.
As Martin Armstrong says…If the govt cqn borrow/print what it needs, why do we pay taxes?
There is no Constitutional United States
by 2024 at this ratenow.FIYA.
On January 6th, we ceased being a Constitutional Republic. We’re a banana republic now.
This lady’s new book looks interesting “The War on Small Business, How the Government Used the Pandemic to Crush the Backbone of America”
Exactly. Small business is the backbone of the middle class, the backbone of upward mobility. So only the megalopolies were allowed to operate in Scamdemic as “Essential”: Walmart, Amazon, big grocery chains and so forth.
Notice how 2 tiered this was.
Everyone working these giants is a poor peon, now masked down like a slave only their AIRWAYS AND LUNGS AND FACES ON 40 hour a week lockdown, while the Chinese suppliers and big corps made all the profits.
Plantation-nomics.
“2 weeks to flatten the curve magically became 18 months and counting to flatten small business”
–A wise commentor
WHY is it better to be crowded in a huge chain than all spread out in all these stores including every mom and pop store? Oh right, it wasn’t.
And by the way, for those who LOVE immigrants and minorities so much, now they have to get their local foods from Walmart, Kroger, Publix and Trader Joe’s instead of the bodegas and Asian marts and Indian shops and all that being crushed too. People want a piece of the pie, overlords.
ALSO note that they’re literally claiming “Farmer’s markets are racist.”
They don’t even care their in your face totalitarianism and crushing of your dreams doesn’t make sense.
I don’t think they want it to.
I think it’s part of the battering ram approach to being in your face about dream killing. They WANT to depress and demoralize. “But but, let me argue, this is illogical, this makes no sense.”
Of course not rube, we want to do like the Star Trek episode where they crushed the machines that had common sense by spinning their wheels in hopeless illogical babble.
It is another BATTERING RAM to the soul that this is purposefully not even trying to be sensical.
Out it and don’t give in. Spend as little time arguing purposefully b-s lies and excuses and just really focus on figuring out how we come out the other side.
And we will. Good prevails if good doesn’t give in.
By the end of the year, Bernie Sanders is named Secretary of Bread and Soup Lines.
For thee, not for he.
I don’t know why the Commie that puts the people in the bread lines always gets 3 mansions but so far that is a universal feature of this devillish system.
Also can we just get real that Communism was always a European envy system fueled by rage and failure designed to reverse the SAME EXACT system only put their betters at the bottom and them at the top?
Nobody who inflicts Communism on the peons ever lives like anything but a depraved priveleged tyrannical monarch. You’re better off under Ivan the Terrible than the Squad and this geriatric, or Mao and Castro. All the same thing.
Has anyone ever gone to the Library of Congress if not you can learn a little history of repetition in regards to Lenin and Stalin here…
https://www.loc.gov/exhibits/archives/intn.html
Small portion of this history is below, it is a letter from Lenin to Penza…
Send to Penza
To Comrades Kuraev, Bosh, Minkin and other Penza communists
Comrades! The revolt by the five kulak volost’s must be suppressed without mercy. The interest of the entire revolution demands this, because we have now before us our final decisive battle “with the kulaks.” We need to set an example.
This needs to be accomplished in such a way, that people for hundreds of miles around will see, tremble, know and scream out: let’s choke and strangle those blood-sucking kulaks.
P.S. Use your toughest people for this.
TRANSLATOR’S COMMENTS: Lenin uses the derogative term kulach’e in reference to the class of prosperous peasants. A volost’ was a territorial/administrative unit consisting of a few villages and surrounding land.
[not numbered]
Globalist WANT unrest, war, chaos and upheaval. Only way you can keep people arguing amongst themselves is make them hungry, needy and divided about something, anything. . Globalist live for a war. Lots of ammo, machines, missiles, etc. Good business and ongoing, hopefully. They can invest in the war makers, the equipment to make war. We are rich and need to be richer, is their goal. Collateral damage is necessary to keep things going. The Colonels, Majors and Generals love it. They can order all of us to the frontline since if nothing else, it is population control. Expenditure of life is simply necessary for the nation to survive. According to them we are fighting for “freedom”. Ahhh..yes, “freedom, the greatest nation in the world.” Right.
Is it still true that the plan is to force the end of single home zoning and put projects into the suburbs?
Is this a good time to sell a home or a bad time?
Should people be holding or selling?
I know of several people who have sold their home at what they perceived as unrealistic inflated prices. They are renting in the meantime with the idea they will be able to buy back a like home at a 50% reduction and keep the equity profit from their home sale.
I have seen this scenario happen several times over the years and have no deception it cannot happen again.
Where did they stash the proceeds of that windfall from the house sale? What makes them think that bank account or stock fund will survive the coming crash?
That’s what I think too.
I think those that sell, then rent, are then going to be landless and propertyless which is how they get you.
We don’t know what money will be worth.
And there is no place to put it with any protection.
Every day there is another trillion dollar bill (excuse me 4 trillion or whatever) fire sale of America.
AND they KNOW that even the amount of tax thievery currently going on can’t cover things so they’re trying to bury Bitcoin and create a government blockchain scam.
I wish your friends weren’t gambling with home ownership if they owned the homes outright. That scares me for them.
If there’s a depression and they were owners they could at least have some gardens and chickens and stuff.
Because why are Farmer Bill Gates and Blackrock on a land buying spree? You know?
Also the BLM chick who KNOWS these people (cough, cough, is a lying puppet who works for them) ALSO just went on a real estate buying spree.
And they’ve now made precedent that they can just HALT all evictions and rent collection with every scamdemic that comes up.
This is so abnormal but I PRAY it works for your friends, Fandog.
Thank you both and if anyone else has any other thoughts and info or good sites please let me know.
My husband’s uncle had to move into the chicken coop with his family during the Great Depression. I’m thinking a roof over our heads is not the worst bang for the buck.
But pay down your debt as much as you can, because bank accounts can easily become worthless. Anything that is represented solely on a printed statement is not what I would call a tangible asset. Think food, shelter and items to barter.. for same.
Griffin of Citadel has also been on a real estate purchasing spree I believe. Those in the know . . .
Also recently heard that Bill Gates got into the indoor electric farming space in a big, big way. That is where you buy large warehouses, put in grow lights, and grow plants on multi- tiers , all inside.
Control the food supply + control the weapons = control the population.
Add in the government can check its database to see whether or not you got vaxxed (ever ask how were they able to automatically enter the vaxxed into the state lotteries with no step needed by any vaxxed person? Drivers license databases, with your scannable digital ID on the back of the license).
Yes, they have been putting all these pieces into place for a very, very long time, building out that infrastructure. Are you awake yet to the level of intricate planning? 911, surveillance and fear -> real ID. The Hanging Chads performance -> hackable voting systems. Covid -> all the puzzle pieces come together for total control over a sleepwalking population of wage slaves.
Except . . . Trump.
Then they had to boil the frog all at once.
They were working on Covid or worse well before Trump ever appeared on the scene. So when the usual Watergate playback failed, and probably the JFK playback failed (Hawaii missile scare?), they used the remaining arsenal they had in hand, earlier than planned. Now we will see the genius of the dispersal of power under the American Constitution. As long as enough people wake up and take back their school boards, their police departments, their sheriffs, their County boards, and their state governments. God willing, if enough of the vast majority of Americans wake up and act, the whole plan falls to ruin and boomerang.
Got cash? Buy productive acreage on which you can grow something to eat or barter, as far away from cities as you are able.
By the way, in more and more areas you have to scan the back of your driver’s license, for example to check in as a visitor to your kid’s public school, to make a withdrawal at the bank, to buy liquor at the store).
In some areas at least, mandatory social compliance, whether it’s the vax or your other social credit score equivalent, is already just waiting for the flip of the official governmental switch.
Another reason to buy and live local and to avoid the big chains and public schools.
The ones I know bought physical silver and gold. I don’t know if that will save them, but they felt it better than dollars. Some think diamonds. You can put a million dollar diamond in your mouth.
Interesting, some of my friends have bought property in Mexico and Belize. Some have bought property in Portugal and the Azores Islands as well as become dual citizenship. The same with some of my Swiss friends in terms of Switzerland.
I feel confident the American people will win back our Country by the end of the year. If not, then most likely a done deal. None of this recovery will be possible without the leadership of our legal Constitutional President Donald Trump and the power of MAGA (American Patriots).
I just bought a home but it was a good price in a Cleveland suburb, one of the last placed in the North where you can still swing a decent deal and my interest is 2.8% . My feeling is buy now if you can but do not get in over your head. The interest rate is nice and low but it will most likely only pay off if you get a house you can afford. So many houses going to tens of thousands over their market value. The thing is, we are in an unstable time. If biden or his puppets anyways, continue for another 3 years, no telling what our economy is going to look like, I think it’s possible our wages will devalue quickly.
Thank you. Yes, scary.
And that sounds like a nice house.
You and SD are probably right about wages. Yeah, no telling what the puppeteers are up to.
God be with you and prayers for you and your family’s future. (And for all Treepers)
Shrink-flation.
I found some old empty bags from Peets Place coffee…they have repurpose value to me.
The bag size is the same but in the last 2 years or so, the price has gone up and the current bag of coffee weight is 10.5 ounces (down from 12 ounces printed on the 2 year old empty bag destined for repurpose).
Absolutely true! When you think that HEB bag of frozen organic fruit or vegetables doesn’t quite go as far, you’re RIGHT! It is a sneaky deception!
I remember some years back when the price of gas went sky high, HEB sadly notified shoppers that they would have to go up on their prices to cover the cost of transporting groceries to the stores.
But you know what? After the price of gas went down a lot, I never remember reading a notice from HEB that their prices were being adjusted accordingly!
No more Mr. Nice Guy…
The People’s President has taken the Gloves Off.
You Fist Faced Commie RINO Globalist Shills Listen Up.
It’s Bare Knuckles Now, and You’re All Sooooo Punchable.
Trump Won – Phony Biden Didn’t Win Anything.
Let’s Roll America.
Let’s Roll !
AGREE! You all sound like a bunch of “ninnies” We won….we, 86 million still alive and kicking. WTF get those bastards out of the WH and get with it. We outnumber them.
All those COVID relief payments are being clawed back and acceleration is full steam ahead
Your explanation is very clear, Sundance.
Thank you.
In closing remarks… fix “the ramp to Noah’s ark” sted arc.
Not everything is undergoing inflation under Joe Biden. In fact a number of things are undergoing extreme deflation, such as Presidential IQ and respect for America’s DOJ, FBI and military, just to name a few items…
In fact, all in all, we should probably call this deflationary times. Perhaps a catchy title like The Great Deflation.
Be patient, be respectful, be kind and caring toward all.
This. ??????????
What I don’t get is why kill the goose that lays the golden eggs? If the Chinese economy depends upon exports to USA, and the middle class is decimated, then who will prop up the Chinese economy? The USA middle class drives the entire world economic engine and funds all the EU weenies social programs.
So who will be left standing after the greedy globalists pull the rug out?
I have a car that can only take Premium gas. I filled up this week and topped $50 for the first time in 4 years. I was not happy. That is at least a $10 increase in filling up since Dec.
Also, the price of meat and chicken–it is MUCH higher probably 20% at this point.
We have been watching grocery prices closely and are stocking up on Sales esp for meat/chicken that can go in our 2nd freezer.
It is here and it is going to be UGLY
WHAT YOUR LIB FRIENDS SAYING ABOUT IT ?????
Sundance,
You are correct about inflation, about house prices and about the dollar falling. I am an economics teacher, so I explain all three in terms of the economics that I teach:
Eventually, either the dollar will crash or the Fed will start raising interest rates above the inflation rate to try to stop the the rising inflation and the falling dollar. I’m predicting that they will not do so until after February 2022 (when Powell gets re-appointed to a new 4-year term at the Fed, or replaced).
Your analysis and mine run contrary to the current wisdom believed by most financial analysts, including those at the Fed. They believe that inflation is transitory, just as the spike in lumber prices was transitory. But they are all ignoring the fact that the Biden administration is taking measures to reduce supply including:
You can read more of my analysis here and in American Thinker.
Howard
The only question I have about your analysis and Sundance’s for that matter, is this: We are seeing a phenomena that we haven’t seen before and that is the great numbers of people moving from one location to another.
I live in Arizona and I can’t go anywhere without seeing almost as many California license plates as Arizona plates. I’m sure it is the same in Texas. ( Also, I see Illinois, Michigan, New Jersey, Oregon, Washington, Colorado and other states’plates).
Although there has always been movement between states, it has never been like this. Our real estate prices, and rental prices reflect this trend. I know someone’s whose daughter just bought a 1300 sq ft house (3 bed, 2 bath) built in 1955 with a carport in a questionable neighborhood for $130,000 above the asking price. Asking price was $415,000. Sold for $545,000 with 10 people vying for it and one pregnant woman crying that she lost yet another one. No good schools. This is Phoenix. People’s house are going up $50,000 in the last 30 days.
I think people come from California where everything is more expensive sell their house and are willing to plop down huge sums here. I imagine a similar thing is happening in Texas and Florida. None of these economic analysis take this into account.
There were similar migrations during the 1930s when blacks migrated north after FDR’s minimum wage put southern factories out of business and rural people (“Okies”) migrated to California after losing their farms to the dust bowl drought. Now we’re seeing people migrate to conservative states to escape the high crime and taxes of Democrat-run cities.
Freedom vs Equality (of outcome). What does that mean. The Great Reset and our ultimate freedom. A very good discussion…Until Youtube removes it…
Everyone needs to understand the difference between currency and money.
If you don’t then you are the sucker at the poker table.
Great article. Your comment about the third monkey getting on the ark was priceless!!
The Country’s heading into its second only era of economic Stagflation, a Democratic specialty. This is going to be rough but like all hardships in life it’s also going to be a blessing in disguise. It’s going to paralyze the Democrats ability to print money and coopt countries, organizations, and people. We’re not a little banana republic – China’s not going to be able to come along and subsidize their operations.
The Democrats are going to be completely despised after they wreck everything, and if there are any Tyrants in this Country, It ain’t going to be them.
Don’t forget those federal government employees (non-military) get automatic cola’s, step rates, in series advancements and a defined pension plan. Not to mention they are grossly overpaid for what little the do. They will live high off the hog.
Not if our tax dollars dry up they won’t live high on the hog. The crash will be all encompassing. One big reason the globalists want to kill off us boomers is they simply can’t afford us.
Let’s take a step back in time. In the 1930’s FDR wanted money for state initiatives, but the country was broke.
He then made it illegal to hoard gold and bought it up at ~$20 an ounce. He then made the gold worth $35 an ounce by executive order. This gave the federal reserves more money which he then borrowed from for his initiatives. A great many people were upset as they had been robbed but there was nothing they could do.
There are some similarities to today. The joebama gangsters want to spend more, but the country is once again broke. Devaluing our money does two things, 1) it allows the feds to pay down the dept with less resources and two it allows them to spend more. The end result will be our money is worth less but the gangsters get their programs.
And they pay themselves handsomely for things they screwed up in the first place.
Speculating over big macro economic trends and the direction of the market and economy over the short term almost always end up being an exercise in futility.
The main driver of big inflation in the past was wages. And big powerful unions. Energy too but the former two were more long term drivers.
The deflationary forces of the past 20-30 years that have kept inflation under 2% are not going anywhere. They are cheap labour in countries that were previously unavailable for such production, and technology.
(I am not a fan of good being made offshore at such a volume as they have been, but Democrats stole the election front the only person willing to do something about it, so what are we supposed to do?)
Western governments have obviously put out a ridiculously unwarranted amount of cash due to Covid. With travel bans countries have been reaping the benefit of cash being mostly spent in their own back yards. When people travel the world like they did pre-Covid, it spreads spending all over the place, and also consumption. Regarding commodities such as lumber and other building materials, demand for them will thin out too when people aren’t spending all of their travel cash on new decks and kitchens.
Further, expected tax increases, likely next year, in pretty much all western countries, will kaibosh demand as well.
And there are clear supply-chain dislocations at present which will get back to normal in due course.
Regarding the stock market we may look like we are in a bubble but we are not anything like the last one which was late 90s prior to the tech wreck and “fear of missing out” was visible everywhere. That was the last true stock market FOMO moment. Lately we have had a great run, but nothing like the FOMO that exists in real estate at present.
I don’t like any of these policies and am a die hard GEOTUS fan. But I am also a 30 year Investment Advisor who has a been through several bear markets and market crashes and recessions, many different elections and Administrations, as well as fiscal and monetary policy shifts.
Relax, work with an seasoned advisor whom you trust, listen to them, and make money no matter the current government or economic environment. Focus on the long term, not short-term speculation. As tough as it is, try to separate your political biases from your investing decisions.
There is always money to be made.
Price-to-Rent Ratio.
Any knowledgeable Treepers here who can recommend a reliable and comprehensive source for that? Is it even possible, given these wild times and disparate areas?
Trulia has a Rent Versus Buy Index. Is it accurate?
Hopefully Trumps rally’s will create a necessary fear and urgency among the masses. It is no longer the luxury “I hate Trump” because of his hair or the way he talks. It is now Trump or die. Freedom for the People has no compatibility with the present political regime; Congress, Senate, Supreme Court, Executive Branch.
They can dress this up, or spin it any way they like.
When economic hardship hits, folks start paying attention, and become animated.
Bidens biggest single blow to the US citizen, was the crippling of American energy independence.
When you are at the mercy of your worst enemies re energy supply and pricing, it becomes very hard controlling your own destiny.
There is not an industry today, that will remain unaffected, by this.
It will rise until something gives…
The market will continue rising because Wall Street is once again the priority over Main Street. PDJT showed us it can still go up with America first policies.
That being said, as the money we have saved becomes worth less and less, how does the middle class hedge against inflation? Business owners will require more productivity from workers. Short of getting a second job, the workers will have to tighten their belts. Dave Ramsey, et al, better prepare for a mass influx of listeners, calls, and subscriptions.
Wonder if all the forces of government think it was worth flushing the country down the toilet to get rid of Pres. Trump.
Of course they do. They’re still “the forces of government.”
They get paid no matter what (some even get rich when the USA is damaged), and they’re impossible to eradicate. Monsters, really.
Decent write up but you fail to mention one of the most important things…Interest rates
Raising interest to try to counter inflation is only a matter of time.
That in my opinion will have by far the biggest effect on home prices.
I am going to study this article and all others from Sundance regarding inflation and our economy being destroyed by Whispering Joe Biden.
Thank you Sundance.