Thanks Doug for your note. I agree with what you wrote except higher interest rates. I believe lower rates will spark the economy creating jobs causing more taxes to be collected. With any hope, cars and houses will come to reality and prices will drop. We need to go back on the gold standard. Like the Japanese, we need to stop printing money to curb inflation. Time will tell.
The value of something comes from its scarcity - and its fundamental demand for it. Few in public office understand where 'money' comes from (Trump especially for wanting/demanding lower rates at the Fed.) Most people think that monetary policy is boring - something to handover to financial planners (they are all in on the Ponzi - you might google Larry Fink at Blackrock - a truly evil mind)... monetary policy is boring until one realizes they've been conned and ripped-off. Hedge with Silver - it is an industrial metal and not recycled (yet)- the price has been rigged for 180-years (since the Opium Wars)- the price has been held down like a spring - price suppressed - a bank killer if everyone suddenly went FOMO for the shiney metal.
In order for the U.S. to have a strong economy it needs a strong currency - that gains value from interest on Bond Markets... it's all great until no one want's your Bonds and the Fed is the only buyer of last resort of U.S. debt.. Lowering interest/lending rates actually robs everyone of their savings/wealth; floods the markets/economy with more easy money (worthless paper) - more hyperinflation - more govmt malfaesance. Hyperinflation is the hidden tax that makes you believe homes are an 'investment'. Inflated home prices (bubbles) fool everyone without considering nominal values of money over a 30-year Home Loan...the home didn't gain any real value - we just lost the purchasing power of our currency. As for the economy- it's one big Ponzi that will unravel very painfully - consolidation of wealth for the oligarchs as always... boom bust business cycles we've had over the last 50-years are nothing like what is headed our way. Hedge yourself with PMs.
Thanks Doug for your note. I agree with what you wrote except higher interest rates. I believe lower rates will spark the economy creating jobs causing more taxes to be collected. With any hope, cars and houses will come to reality and prices will drop. We need to go back on the gold standard. Like the Japanese, we need to stop printing money to curb inflation. Time will tell.
The value of something comes from its scarcity - and its fundamental demand for it. Few in public office understand where 'money' comes from (Trump especially for wanting/demanding lower rates at the Fed.) Most people think that monetary policy is boring - something to handover to financial planners (they are all in on the Ponzi - you might google Larry Fink at Blackrock - a truly evil mind)... monetary policy is boring until one realizes they've been conned and ripped-off. Hedge with Silver - it is an industrial metal and not recycled (yet)- the price has been rigged for 180-years (since the Opium Wars)- the price has been held down like a spring - price suppressed - a bank killer if everyone suddenly went FOMO for the shiney metal.
In order for the U.S. to have a strong economy it needs a strong currency - that gains value from interest on Bond Markets... it's all great until no one want's your Bonds and the Fed is the only buyer of last resort of U.S. debt.. Lowering interest/lending rates actually robs everyone of their savings/wealth; floods the markets/economy with more easy money (worthless paper) - more hyperinflation - more govmt malfaesance. Hyperinflation is the hidden tax that makes you believe homes are an 'investment'. Inflated home prices (bubbles) fool everyone without considering nominal values of money over a 30-year Home Loan...the home didn't gain any real value - we just lost the purchasing power of our currency. As for the economy- it's one big Ponzi that will unravel very painfully - consolidation of wealth for the oligarchs as always... boom bust business cycles we've had over the last 50-years are nothing like what is headed our way. Hedge yourself with PMs.