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Inflation & Debt mountain


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Some Central bankers and other economists get carried away and think we high inflation.

Some central banks policies as to create inflation in an deflationary period.

How confused are they?

Inflation has several meanings. For example we have hyperinflation in the stock markets valuations created from QE. Also, share buybacks  is NOT investing in their own companies, but an illusion since nothing is invested in goods and services.

This is not an experiment that some bankers have suggested. It has been done before with the same techniques, all to lead to a disaster for the average person and investor.

Mountain of debt that governments have built up, even PRIOR TO THIS EPIDEMIC, is a result of voters buying by spend, spend spend money they do not have. And central bankers and banks encouragement advises -- let the future pay for it while the bankers milk huge profits from all this, until the domino collapses.

Oh, the FED DOES NOT CONTROL INTEREST RATES and empirical data SHOWS THAT THEY FOLLOW THE BOND MARKET.

This IS THE SOLUTION THAT NEVER HAS SOLVED PAST FINANCIAL CRISES, JUST PROLONGED THE CHAOS TO COME. iT WILL BE THAT MUCH BIGGER BUBBLE.

 

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I don't think I've mentioned this on here - but the stock market in 2000 - REPEATED the 1929 cycle - a quick look at a chart of the Nasdaq100 from 2000 and the DOW from 1929 confirms this, as the formation is similar and as you'd expect, anyway.............

The stock market cycle from 2000 has played out beautifully - anyway to cut a long story short - IF, the Interest rate cycle repeated along with the stock market then the following dates should be observed and so far to date it looks again as if it is playing out nicely

1929-1951 = 22 years 

2000 + 22 years = !!!!!!!!!!!!!!

I wrote a thread on TIME CYCLES - the 1st post shows and explains the cycle and the sequence - backtrack this cycle and it hit 1929 too

During the DOWN/DEFLATIONARY cycles you'll find that central banks throw the kitchen sink at efforts to stimulate things with little effect - the cycles down, nothing can stop it as its deflationary, BUT......

during the UP/INFLATIONARY cycles you find that price inflation, commodity spikes etc happen and the tools to combat that are Interest rate rises, tax rises etc etc etc

I remember back in 2012 ish being told "Low rates are hear forever" by someone on some forum [not this one] - well lets see - I say rates will be back to 5-7% within the next 5 years [most likely a hell of a lot quicker]

As humans, we have to position ourselves so that we are not burnt by adverse events, govts have proved they can't prevent crashes and the like

PS - Stock Market - My expectation based on my analysis is its UP until the mid 2030's - obviously there will be plunges like 2020 along the way, but no major crash

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