The Deflation Monster Has Arrived
Submitted by Chris Martenson via PeakProsperity.com,
As we’ve been warning for quite a while (too long for my taste): the world’s grand experiment with debt has come to an end. And it’s now unraveling.
Just in the two weeks since the start of 2016, the US equity markets are down almost 10%. Their worst start to the year in history. Many other markets across the world are suffering worse.
If you watched stock prices today, you likely had flashbacks to the financial crisis of 2008. At one point the Dow was down over 500 points, the S&P cracked below key support at 1,900, and the price of oil dropped below $30/barrel. Scared investors are wondering: What the heck is happening? Many are also fearfully asking: Are we re-entering another crisis?
Sadly, we think so. While there may be a market rescue that provide some relief in the near term, looking at the next few years, we will experience this as a time of unprecedented financial market turmoil, political upheaval and social unrest. The losses will be staggering. Markets are going to crash, wealth will be transferred from the unwary to the well-connected, and life for most people will get harder as measured against the recent past.
It’s nothing personal; it’s just math. This is simply the way things go when a prolonged series of very bad decisions have been made. Not by you or me, mind you. Most of the bad decisions that will haunt our future were made by the Federal Reserve in its ridiculous attempts to sustain the unsustainable.
The Cost Of Bad Decisions
In spiritual terms, it is said that everything happens for a reason. When it comes to the Fed, however, I’m afraid that a less inspiring saying applies:
Yes, it’s easy to pick on the Fed now that it’s obvious that they’ve failed to bring prosperity to anyone but their inside coterie of rich friends and big client banks. But I’ve been pointing out the Fed’s grotesque failures for a very long time. Again, too long for my tastes.
I rather pointlessly wish that the central banks of the world had been reined in by the public before the crash of 2008. However the seeds of their folly were sown long before then:
(Source)
Note the pattern in the above monthly chart of the S&P 500. A relatively minor market slump in 1994 was treated by the then Greenspan Fed with an astonishing burst of new money creation -- via its ‘sweeps” program response, which effectively eliminated reserve requirements for banks .That misguided policy created the first so-called Tech Bubble, which burst in 2000.
The next move by the Fed was to drop rates to 1%, which gave us the Housing Bubble. That was a much worse and more destructive event than the bubble that preceded it. And it burst in 2008.
Then the Fed (under Bernanke this time) dropped rates to 0%. The rest of the world’s central banks followed in lockstep (some going even further, into negative territory, as in Europe’s case). This has led to a gigantic, interconnected set of bubbles across equities, bonds and real estate -- virtually everywhere across the globe.
So the Fed's pattern here was: fixing a small problem with a bad decision, which lead to an even larger problem addressed by an even worse decision, resulting in an even larger set of problems that are now in the process of deflating/bursting. Three sets of increasingly bad decisions in a row.
The amplitude and frequency of the bubbles and crashes are both increasing. As is the size and scope of the destruction.
The Even Larger Backdrop
The even larger backdrop to all of this is that the developed world, and recently China, have been stoking growth with debt, and have been doing so for a very long time.
Using the US as a proxy for other countries, this is what the lunacy looks like:
As practically everybody can quickly work out, increasing your debts at 2x the rate of your income eventually puts you in the poor house. As I said, it’s nothing personal; it’s just math.
But somehow, this math escaped the Fed’s researchers and policy makers as a problem. Well, turns out it is. And it’s now knocking loudly on the world’s door. The deflation monster has arrived.
The only possible way to rationalize such an increase in debt is to convince oneself that economic growth will come roaring back, and make it all okay. But the world is now ten years into an era of structurally weak GDP and there are no signs that high growth is coming back any time soon, if ever.
So the entire edifice of debt-funded growth is now being called into question -- at least by those who are paying attention or who aren't hopelessly blinkered by a belief system rooted in the high net energy growth paradigms of the past.
At any rate, I started the chart in 1970 because it was in 1971 that the US broke the dollar’s linkage to gold. The rest of the world complained for a bit at the time, but politicians everywhere quickly realized that the loss of the golden tether also allowed them to spend with wild abandon and rack up huge deficits. So it was wildly popular.
As long as everybody played along, this game of borrowing and then borrowing some more was fun. In one of the greatest circular backrubs of all time, the central banks and banking systems of the developed world all bought each other’s debt, pretending as if it all made sense somehow:
(Source)
The above charts show how hopelessly entangled the worldwide web of debt has become. Yes, it's all made possible by the delusion that somehow being owed money by an insolvent entity will endlessly prevent your own insolvency from being revealed. How much longer can that delusion last?
All of this is really just the terminal sign of a major credit bubble -- a credit era, if you will -- drawing to a close.
I will once again rely upon this quote by Ludwig Von Mises because apparently its message has not yet sunk in everywhere it should have:
“ There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.”
~ Ludwig Von Mises
Well, the central banks of the world could not bring themselves to voluntarily end the credit expansion – that would have taken real courage.
So now we are facing something far worse.
Why The Next Crisis Will Be Worse Than 2008
I’m not just calling for another run of the mill bear market for equities, but for the unwinding of the largest and most ill-conceived credit bubble in all of history. Equities are a side story to a larger one.
It’s global and it’s huge. This deflationary monster has no equal in all of history, so there’s not a lot of history to guide us here.
At Peak Prosperity we favor the model that predicts ‘first the deflation, then the inflation’ or the "Ka-Poom! Theory" as Erik Janszen at iTulip described it. While it may seem that we are many years away from runaway inflation (and some are doubting it will or ever could arrive again), here’s how that will probably unfold.
Faced with the prospect of watching the entire financial world burn to the figurative ground (if not literal in some locations), or doing something, the central banks will opt for doing something.
Given that their efforts have not yielded the desired or necessary results, what can they realistically do that they haven't already?
The next thing is to give money to Main Street.
That is, give money to the people instead of the banks. Obviously puffing up bank balance sheets and income statements has only made the banks richer. Nobody else besides a very tiny and already wealthy minority has really benefited. Believe it or not, the central banks are already considering shifting the money spigot towards the public.
You might receive a credit to your bank account courtesy of the Fed. Or you might receive a tax rebate for last year. Maybe even a tax holiday for this year, with the central bank monetizing the resulting federal deficits.
Either way, money will be printed out of thin air and given to you. That’s what’s coming next. Possibly after a failed attempt at demanding negative interest rates from the banks. But coming it is.
This "helicopter money" spree will juice the system one last time, stoking the flames of inflation. And while the central banks assume they can control what happens next, I think they cannot.
Once people lose faith in their currency all bets are off. The smart people will be those who take their fresh central bank money and spend it before the next guy.
In Part 2: Why This Next Crisis Will Be Worse Than 2008 we look at what is most likely to happen next, how bad things could potentially get, and what steps each of us can and should be taking now -- in advance of the approaching rout -- to position ourselves for safety (and for prosperity, too)
Click here to read Part 2 of this report (free executive summary, enrollment required for full access)
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"Lower gas prices doesn't "stimulate the economy", that "extra" will just go to pay for beginning to have a third meal in a day for a change, even including some meat in it.
Only those suckling at the teat can afford meat.
Unless you grow it yourself that is.
http://www.urbandictionary.com/define.php?term=whow
(but good catch, and I think it's a typo too)
"Whow owes what to whom" ?
How many bets have been made on who owes what to whom and who are the parties to these bets? How many bets have been made on the outcomes of those bets etc. etc. etc.
Fixed
Oh? It sounds like total insanity?
"And if you want to find out how to not become a victim of this coming apocalypse, we have the solution using this one weird trick that Central Banks hate - just sign up for recurring billing agreement and you can read the next part...."
I'll tell you for free: Invest in productive assets/skills and have a core holding in PMs. Any debt that you haven't been able to clear by the time the inflationary boom/bust comes, hopefully you can wipe-away with a small percentage of your PM stash and then you can run a lean small business providing necessary services and try and hold on.
very good advice!
Timing is a tough one but I agree with you. Miners and drillers will be on fire when this thing blows. Companies at their extreme lows---like fcx, etc-- will go wild when TSHTF.
Speaking of SHTF, anyone seen HH today? I want to ask him about the Benelli M4 and what he might suggest for an extender on that magazine.
If hyperinflation comes, you won't need to waste your PMs on paying off your debt. The hyperinflation will do that for you. The LAST thing you should use your precious metals on is paying off debt denominated in worthless currency.
But you see lots of "smart people" pounding the table to GET OUT of DEBT.
But you see lots of "smart people" pounding the table to GET OUT of DEBT.
Logged in just to upvote this one. Spot on.
Am I the only one who doesn't even bother logging out?
Or . . . become a .gov employee, somebody 'essential' to some 'critical' function. I'd suggest doing a .gov job listing search for the following words: 'security', 'intelligence' and 'enforcement'.
"Money is not the problem, it's who creates them."
& that would be?
Hint: rhymes with 'news'
ok alex, i say uh, cashews
Gesundheit! A little Matzoh Ball soup ought to cure that sneeze right up!
FFS ~ If I stretch my imagination, I can understand Ashkenazi's possibly being a culture who are genetically inbred to want to take over the world, but FFS, whose idea was it to hijack a 'religious cult', whereby the tradition of those cult members is to eat gefilte fish to do it?
Yuk ~ I'd rather slit my fucking throat! I would have easily opted for the Italians, Indians, or Thai's & tried to figure out which GOD they were whacking off to... lol
You'd honestly think the Reptilians would have been smart enough to leverage a hot bisexual God/Goddess couple in an open relationship who wants to have sex with you, dear supplicant. Then again, that would have undermined the emotions of guilt and self-hatred that can then be leveraged by the media and projected out onto the Enemy De Jour.
Fuck the reptiles as well...
Blues? The Blues Brothers?
Mr. Sono
Currency is brilliant.
Fools belief is the problem.
Currency is a weapon.
Money is elemental.
>>Money is not the problem, it's who creates them.<<
The definition of money as debt is absolutely a problem. Money as debt is a HUGE problem, too.
Your missing the point.
Yep. A $10 million bank account requires fewer electrons than a 5 year old nicad battery that no longer will hold a functional charge.
Mr. Yellen will whip out her boobs and show her NIRPples within six months.
Oh the humanity. Minus one for putting that image in my head.
Chris, I love your work and maybe you are just whistling past the graveyard on the blame game here but the FED is a machination of the International Banking Cartel run by Zionist jews and what they have done and are doing is quite intentional and evil. These may "look" like bad decisions and indeed thay are certainly bad for most people, they are perfectly executed for the cartel and their controlled support edifce (ie. politicians, MIC, pentagon leaders, media leaders, etc.). Thankfully the internet has exposed them before they could complete their plan but they will not stop on their own. Events today all over the globe are not all that they expected and this may turn out to be a far bigger shit show then anyone ever considered.
I think he's just trying to push more into the MSM channel here. He's well aware that the paradigm of "perpetual growth" is THE problem, but very few people can wrap their minds around this (even though it's perfectly explainable in simple and easy-to-understand terms)- people don't want to hear it and, looking around it should be obvious how this will go down- PEOPLE NEED "SOMEONE" TO BLAME; SO... it'll be the banksters; who, though not the creators of the problem, have been the biggest facilitators of it.
Re Seer: "the paradigm of "perpetual growth" is THE problem"
No it is not THE problem. A group of mafia jews has with intent and purpose taken over the monetary system and has used the zionist as their top layer of support. It is privately owned for their profit and manipulated for their profit. As they have multiplied they all each want a personal profit not only equal but larger than their previous generation. In good time they take more and get used to it, so in bad times the keep the same profit amounts while the rest of us suffer.
They have spread and inflitrated govt, judicial, intelligence, media and political areas to the point their influence is giving them confidence to make overt moves. They took down the towers, they spray right over our heads they issue digital dollars to themselves and buy assets with phoney "money".
Their psycosis is in their genes and does not lessen with riches. They want it all and view the goy as livestock, and they have the cold heart of a sociopath. And they are so good at it they manipulate the masses to do it to themselves. The influx of unwanted foreigners is their way of breeding the livestock to create the herd as they want it to be. (among other things)
The problem is you smelly humans. You're a bunch of greedy pigs with mental issues galore! And talk about control freaks.
Scooby know this from first hand experience. Why not just leave the dog food out so I CAN CHOOSE when and how much I eat???!!!
Had to give you a scooby snack for that one.
There is no doubt that the Debt-Money Monopolists are the The Big Bad.
But they need help from people with mental viruses in their head to allow them to do what they do.
Less than 0.01% of Jewish people are involved in managing the Debt Star empire system (better than the Death Star as the planet is fully exploitable after detonation), yet irrational people blame the 99.99% in with the true Big Bad WITH THE NET EFFECT OF SHIELDING THE REAL BIG BAD FROM THE DIRECT SPOTLIGHT.
But, alas, the visceral hate is just too sweet to these people to actually use their minds... they just need to hate some group they've created in their heads... they can't help themselves.
The fact that each human is an individual worthy of individual judgment is just too rational for them. It is too complicated for their simple minds.
And the DMM have exploited this fact because people can't be divided and ruled ONE PERSON AT A TIME.
No, the DMM has to create groups and pit them against one another so that the DMM never gets the spotlight put on them. They rely on the unwitting to perpetuate their propagandistic myths that keep the DMM, AND ONLY THE DMM, out of the spotlight.
You see, the selfish pig DMM have studied the average human and learned to use the selfish pig nature of the average being against him/her as a weapon.
Thanks in part to Eddie Bernays, one of the heroes of the DMM.
Abso-freakin-lutely. Bernays, Freud's nephew, impressed anyone interested in controlling reason and manipulating emotions. This included Hitler and it also includes the Debt-Money Monopolists and their top technocrats like Zbigniew Brzezinski...
“In the technotronic society the trend would seem to be towards the aggregation of the individual support of millions of uncoordinated citizens, easily within the reach of magnetic and attractive personalities exploiting the latest communications techniques to manipulate emotions and control reason.”
? Zbigniew Brzezi?ski, Between Two Ages: America's Role in the Technetronic Era
“We have a large public that is very ignorant about public affairs and very susceptible to simplistic slogans by candidates who appear out of nowhere, have no track record, but mouth appealing slogans”
? Zbigniew Brzezi?ski
“The technotronic era involves the gradual appearance of a more controlled society. Such a society would be dominated by an elite, unrestrained by traditional values. Soon it will be possible to assert almost continuous surveillance over every citizen and maintain up-to-date complete files containing even the most personal information about the citizen. These files will be subject to instantaneous retrieval by the authorities. ”
? Zbigniew Brzezi?ski, Between Two Ages: America's Role in the Technetronic Era
"Political strategists are tempted to exploit research on the brain and human behavior. Geophysicist Gordon J. F.MacDonald -- specialist in problems of warfare -- says accurately-timed, artificially-excited electronic strokes 'could lead to a pattern of oscillations that produce relatively high power levels over certain regions of the earth...In this way, one could develop a system that would seriously impair the brain performance of very large populations in selected regions over an extended period'...No matter how deeply disturbing the thought of using the environment to manipulate behavior for national advantages , to some, the technology permitting such use will very probably develop within the next few decades."
? Zbigniew Brzezi?ski, (included in) Between Two Ages: America's Role in the Technetronic Era
This man hates ordinary people and picked sides in the epic century long battle exposed by one Lord Acton...
"The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks."
~Lord Acton
...and it isn't with the people.
all risk, so if I see a criminal and he/she is a jew connected to many more jews, that information is not of import? if I see whole industries controlled by a group of those self identified with one religion, ignore it? if I see the basis for communism came from and infected the many of this same group, just ignore it? If i see constant support for policy that is destroying a nation, from immigration, monetary policy, trade, and war policy, and this same group has influence far greater than their numbers in the population, well just ignore it?
https://www.youtube.com/watch?v=34ag4nkSh7Q
i agree we must point blame at those who commit the crimes, but damn you cant throw a dart at those in power in these areas without hitting one..perhaps there is another problem with just what is helping all these people commit crimes and push society in ways that lead to that society's destruction??
i would rather not look at it that way, but, these people keep turning up - like lois lerner at irs - coincidence no doubt.
>>all risk, so if I see a criminal and he/she is a jew connected to many more jews, that information is not of import?<<
It is a piece to a bigger puzzle, not THE PUZZLE itself.
What it doesn't do is reflect on the vast majority of Jewish people who aren't involved in this crime.
Maybe you would see a different perspective as enlightening...
"so if I see a criminal and he/she is a white person connected to many more white people, that information is not of import?"
Important as in all white people should therefore be demonized?
It is irrational for blaming person A for the actions of person B, especially when person A types are > 99.9% of the population group and person B are < 0.1%.
Shouldn't the INDIVIDUALS COMMITTING THE CRIMES GET 100% OF THE SPOTLIGHT?
What if I knew a big eared criminal tied to other big eared criminals? Yes, it is important, but only so long as you don't start blaming innocent big eared people, THEREBY ACTIVELY SHIELDING THE GUILTY FROM SCRUTINY!
>>if I see whole industries controlled by a group of those self identified with one religion, ignore it?<<
No, it is important and it ties back 100% to the Debt-Money Monopoly, NOT THEIR RELIGION. If an Irish criminal syndicate figured out debt-money fraud and aligned themselves with European Royalty before the Rothschilds then it is likely that Hollywood (a key WEAPON of the Debt-Money Monopolists, but NOT my Jewish neighbor!) would be controlled by buddies of the Irish who controlled the Debt-Money Monopoly system...
And the average person would be throwing hot coals on ordinary Irish people instead OF THE ACTUAL CRIMINALS WHO PERSONALLY RUN THE SYSTEM.
I'm like a magnifying glass that focuses all the light onto THE GUILTY INDIVIDUALS AND THEIR CRIMINAL SYSTEM.
People who focus on large groups that don't correspond tightly to the criminal cartel running the world are like a window that focuses light nowhere in particular.
Even worse, THEY ACTIVELY BENEFIT THE CRIMINALS BY SHIELDING THEM FROM DISINFECTING LIGHT.
>>if I see the basis for communism came from and infected the many of this same group, just ignore it?<<
Your error is assigning the actions of very few Debt-Money Monopolist operatives, WHO HAPPEN TO BE JEWISH, to clueless Jewish ordinary citizens.
You see, I see what you see, but I don't waste time blaming the 99.9%+ innocents like those with blurry vision.
I zero in on the individuals who are absolutely guilty and their expose the methodologies behind their crimes. I don't make my clueless Jewish neighbor feel like chit simply because I can't reason clearly and am over generalizing the actions of tiny minority to an entire group with the effect of actually protecting the tiny minority I claim to despise so dearly.
I'm your best asset, because ALL my energy is spent fighting the Debt-Money Monopoly - THE REAL POWER STRUCTURE IN THE WORLD - and no energy angry my clueless, powerless Jewish neighbor.
BTW, lots of non-Jewish players are running the Debt-Money Monopoly that is destroying the lives of ordinary citizens like a log through a wood chipper... the Queen of England, Queen Beatrix, the Rockefellers...
Simple mental models don't describe moderately complex problems (it really isn't that complex, but seeing beyond Debt-Money Monopolist programmed prejudice is very tough for most people - and yes, the Debt-Money Monopolists finance the "ant-Jewish" narrative because it helps in their desire to divide so they can rule. In addition, ordinary Jews ARE ON THE DEBT-MONEY MONOPOLIST DINING TABLE AND WILL BE EATEN ALIVE JUST LIKE YOU AND I... but not the "GOY ROCKEFELLERS." Or the "GOY ROYALTY."
No, they will be protected... because those "goy" are running the Debt-Money Monopolist system as surely as the Rothschilds.
>>If i see constant support for policy that is destroying a nation, from immigration, monetary policy, trade, and war policy, and this same group has influence far greater than their numbers in the population, well just ignore it?<<
What you see is real, it is your extrapolation that is incorrect. The Debt-Money Monopolists are the rulers of the world through their definition and control of the object that is "a root of all evil." You Jewish neighbor doesn't control the freakin' money supply, HE'S A VICTIM OF THE DEBT-MONEY TYRANNY THAT IS DESTROYING THEIR FUTURE AS SURELY AS IT IS DESTROYING OUR FUTURE!
DON'T YOU SEE THE OBVIOUS?
Ordinary people, who happen to be Jewish, ARE BEING BANKRUPTED AND HAVING THEIR HOMES FORECLOSED ON, TOO...
>>https://www.youtube.com/watch?v=34ag4nkSh7Q<<
That's a straw man argument... I never said there wasn't data... I said people like you misinterpret the data TO THE EFFECT OF ACTUALLY PROTECTING THE CRIMINAL POWER STRUCTURE FROM BEING EXPOSED.
>>i agree we must point blame at those who commit the crimes,<<
Ya think?
??but damn you cant throw a dart at those in power in these areas without hitting one..<<
There are two issues.
1. The over representation of Jews in the Debt-Money Tyranny system - which does exist. These people account for far less than 0.1% of Jewish people.
2. Blaming 99.9% of people for the actions of 0.1%, regardless of any other circumstances. This makes no sense.
Whose to say the European Royalty aren't perched at the top of the Debt-Monopolist conspiracy and the Rothschilds actually work for them? Or that they've all teamed together as equals. Maybe the Queen wants to primarily hire Jewish people TO KEEP CRITICISM AWAY FROM THEMSELVES.
If so, YOU'VE BEEN PUNKED! PLAYED FOR A CHUMP. A VICTIM OF PROGRAMMING.
The people who serve the Debt-Money System aren't there because of their Jewishness, they are there because they've sold their soul to this demonic debt-money system. Were the Rothschilds tasked with staffing concerns? Did they hire people they knew BECAUSE THEY KNEW THEM? Where these people mostly Jewish because the Rothschilds were Jewish?
How does this benefit the ordinary Jewish single mother who was foreclosed on by the bank and lost her job last month again?
Blame the right people. Think deeper. Reject the simple, societal pervasive narratives invariably financed by the Debt-Money Monopolists in order to further THEIR agenda, NOT YOURS.
>>perhaps there is another problem with just what is helping all these people commit crimes and push society in ways that lead to that society's destruction??
i would rather not look at it that way, but, these people keep turning up - like lois lerner at irs - coincidence no doubt.<<
The upper echelons of the Debt-Money Monopoly and their vassal governments are pure filth. Some of these people are Jewish. In fact, they are over represented in the crime syndicate.
All my wrath is turned on EXACTLY THOSE PEOPLE REGARDLESS OF ANY OTHER COINCIDENT CHARACTERISTIC THEY MAY POSSESS.
Blaming a clueless, powerless, victim of the Debt-Money Monopolist system for the actions of the Debt-Money Monopolists simply because they allegedly share a religion or background (BTW, most ordinary Jewish people aren't Satanists like the Debt-Money Monopolist Jewish and other background demon spawn) is irrational.
And I get it... being irrational is fun.
But it is a key platform on which the destruction of our society rests.
Focus solely on the guilty or else you, wittingly or unwittingly, serve the interests of the guilty.
I'm busy educating Jewish (and everyone else!) as to the machinations of this criminal system that is destroying all our futures while you divide Jewish ordinary people from other ordinary people while the guilty Debt-Money Monopolists run roughshod over ALL OF US!
All it takes is a decision to focus solely on the guilty based on the INDIVIDUAL ACTIONS OF THE GUILTY and we can start making better progress.
Truer words have not been spoken. This will not end well. The Lion Awakes
https://www.youtube.com/watch?v=sn4mVDtqi7g
If any of your money is causing you a proble, you can just send it to me. I deal with such problems. Of course, you will not get it back, but I never guaranteed you would.
Yeah, borrowing and spending at 2x the rate of income growth...for decades...what could possibly go wrong?
WHere exactly is this deflation? It must be things that muppets don't buy that's for sure. 12 dollahs for a pkg of chicken wings. I always heard that the price of petroluem effects the price of everything...ummm. Something aint right.
Probably coming soon, as people can afford less and less of everything at the currently elevated prices. Supply and demand.
Something I rarely, if ever, see mentioned is that oil prices were hammered down precisely to keep distribution costs down. Not only do oil prices affect everything, oil is now in everything. All that Chinese conveyor belt shit that is shipped around the world is made of one or two commodities. Primarily plastics.
Just check, what are kids' toys made of? What are all those racks of cheap (and expensive) clothing made of?
There is no doubt that USNATO is trying to ramp up proxy wars with Russia, but the idea that they could hit Russia with a drop in oil prices may have just been a piece of boisterous propaganda. In reality, the economy is so bad that they had to bring deflation to the distribution chains - mainly through the price of oil and plastics.
True. The facilitators of our modern, JIT world are cheap and reliable electricity, nat gas-based fertilizers, and diesel. Impede the flow of either of those "spices," and modernity comes crashing down.
JIT: another name for increased dynamic range. Trouble is, and these hucksters of all things lean will rediscover this for themselves soon enough, is that increased range is paid for by system stability. Winter of Discontent, anyone?
The movie GRADUATE summed it up years ago. The future is in PLASTICS. However production of plastics is predicated on cheap feedstocks which tend to be located in Middle East and Russia. So is that where the future is located ? Remember, Fracking is an expensive proposition even with a Fed induced bubble.
Inflation in the things we need (food, healthcare, and until recently - fuel).
Deflation in the things we desire (real estate, travel, investment assets).
I, too, will be curious to see the impact of plummeting fuel prices on the price of 'everything else'... IOW, i'll believe in deflation when I see it on retail shelves. I'm skeptical... I think we'll see retailers fold & close-up before we see retail price 'deflation'.
Keep this in mind... mega-retailer Amazon has never once turned a profit, so how could retailers possibly survive a truely deflationary environment?
That's why I'm thinking it's pure planned. institutional fraud. We're well into the phase of shrinking packages and diluted, crappy products made by robots.
The next thing we might see from this quasi- federal group of financial banking experts, predominantly and incidentally tribe members, is NIRP. The idea of having to pay to keep savings in a bank is absurd.
I'm with you... I believe 90% of this "planned".
Deflation benefits those with big $$$ far more than the little guy... the rich will buy-up ALL productive assets & real estate - they are the only ones with the $$ and credit to do so. Wealth will become even more concentrated among the few at the top of the pyramid.
When veiwed from this POV, one can better understand the 'recovery' propaganda from the Fed/media/DC... one last fleecing of the sheep. We are already in full-blown recession, and probably on our way into an economic depression. The wealthy/banks are already positioned for this... because they 'planned' it. Is there any other explanation?
That's why its called the New Feudal World Order. Overlords control everything, and the sheeple are just Serfs getting by on scraps while their attention is deliberately diverted to the latest entertainment spectacle. And if the people get fed up and try to revolt, the Security State will step in to crush it. The last step has to be war to eventually reduce the number of useless Serfs. Same as it has ever been.
Before NIRP they have to real in alot of printed money or it will just go into hidding under mattresses. The epay schemes they had havent caught on..... Perhaps they will have a currency change to "prevent rampant counterfitting" and obsolete old paper money after XX date...
I think I have realized the most likely asset class to survive whats comming is to invest in Lead....