The road to hyperinflation or depression is here
The road to hyperinflation or depression is here.
Markets are breaking.
The Bank of England had to step in to save pension funds that were about to go bankrupt because of the wild moves in the British pound and GILT market.
FYI - the GILT market is the British bond market.
A fundamental truth I learned recently - equity markets don’t mean that much. The bond and credit markets are where everything happens.
The Fed is meeting again soon and given inflation is still high, they’ve indicated they’re going to continue to raise rates.
Just like the Bank of England thought, until their boneheaded politicians decided to cut taxes and massively boost spending while there was a cost of living crisis and rampant inflation.
So markets reacted and it made the pound look like a developing country’s currency.
It took the bank of England less than a week to pivot.
Investors are hoping for that pivot and the Fed is likely to do it, unless they want to cause a massive depression globally.
We’re at the tipping point.
The end of a long term debt cycle.
It was suppose to end of 2008 but all the bankers got away with it while politicians lined their pockets and made the rich even more rich.
If they decide to do the same thing, the road to hyperinnflation is here.
God help us all if we start hyperinflating currencies in developed countries.
Dictators and revolutions. History’s been pretty clear with that.
Yet because of the Fed and central banker’s policy mistakes by not raising rates sooner and buying bonds with inflation running hot, we are doomed.
Peruvian Bull, who has written Pulitizer prize-winning level analysis that every single person interested in economics needs to read, has been predicting this for a while.
He knows where we are and how massively leveraged everything is.
Deflation/depression or hyperinflation and revolutions.
Russia’s at war with Ukraine while Putin wants to annex regions.
Iran is going through a massive revolution that few people in the Western media want to cover.
Turkey is dealing with 80% inflation YoY. Their currency is already screwed.
This is what happens many times in history.
The writing has been on the wall for years.
Jeremy Grantham tried to tell the world in Jan 2021, and no one listened.
Stanley Druckenmiller tried to tell the world the last few years, and no one listened.
Terrible central bank policy that leads to massively inflated bubbles always ends in carnage.
Always.
Only this time you have a bunch of people on the Internet who removed liquidity from the system and the hands of the criminals on Wall Street.
Where’s the money going to come from to pay out their shorts?
All the assets that have been massively inflated the last few years.
That means carnage in every asset class.
Unless the Fed pivots.
In which case buy every asset you can and god help us all that we don’t get caught in the revolutionary crossfires.
Hyperinflation leads to the downfall of countries.
If it doesn’t happen in America first, and likely won’t because of their strong dollar, just wait till you start seeing signs in China, Russia, India and Europe.
World war 2 was a result of terrible local economic problems that started with Weimer hyperinflation leading to Hitler coming to power.
We can’t have that same situation happen today given how many nuclear weapons the world has created.
We’re in a prisoner’s dilemma game where no one wins.
So the only way out is to help each other.
We need smart policy makers who understand history to come to the table and negotiate, for the sake of them and their people.
We also need a world where those who commit crimes are punished. Wall Street can’t keep getting away with it. Bankers can’t keep getting away with what they’re doing.
They’re more powerful than countries now, and they know it.
As I saw in video posted in 2011, Goldman Sachs runs the world, not your local politician.
Guys like Citadel, BlackRock, Fidelity and Vanguard make decisions that affect billions of people lives and you can bet they’re not going to go away lightly.
They decide who lives and dies and which countries continue or not.
The rest of us are just pawns in a capitalist system that’s broken and has been hijacked by the few at the top.
It’s up to us to get educated and take away their power.
So what can you do?
Depression/deflation = cash and gold are your best friends.
Hyperinflation = real goods like metals, commodities and real estate do well.
Get a mixture of both considering we don’t know where we go. Hope that helps.
It’s scary to think about where our world is going.
All I know is the signs are there.
The road to hyperinflation or depression is here.
.svg)
