The rest of the world knows.
This is the most positive article I've seen in months.
Riiiiiiiight!
Let’s go Brandon!
IOW, they’re saying we are now at a new permanently higher plateau of prices. Except the mindset now is when in doubt, raise prices.
Somehow I don’t believe this. When gas and other prices may. When transportation returns to normal and shelves are full with the old prices. Maybe. Do not trust them.
Competition keeps prices down. Excessive regulation reduces competition, penalizing start-ups and entrants to an industry while benefiting those already there. Hence, excessive regulation reduces the main force keeping prices down. The cost of compliance with excessive regulation is another driver of higher prices as it increases fixed and variable costs.
This is why you will often find “Big Business “ comfortable with increased regulation.
“So, where did that surge in the money supply come from?”
What’s inclued in M2 changed in May of 2020.
Amongst the eternal verities is the fact that the media is never held to their errors while THEY trumpet their wins! They have set the facts that THEY choose to include as the basis for their OPINION, BUT how does that refute the analogy to the FORD-Carter stagflation?
The driver for stagflation is mostly INTERNAL, as the internal USofA is the driver for the majority of the WORLD GDP. If the ‘locals’ choose to husband their assets, then it becomes easy to see the unpleasant outcome(s). Yes, mere logic MIGHT say that their decisions to hoard and conserve are foolish, but HISTORY amply demonstrates that EMOTION trumps LOGIC and that speaks badly for this optimistic scenario.
Relying on the rest of the world being in worse shape is not a winning strategy.
And maybe we’re not less worse than other countries. If you go to the following link, and clink on deficit/GDP, you’ll see that only a handful of small, mostly maggot-ridden countries have a larger ratio of deficit to GDP.
https://countryeconomy.com/deficit
We’re living on borrowed money, running up the credit card. Yes, the ability to borrow reflects that somebody has given us a seemingly unlimited line of credit. But, we know how this will work out in the long run. Just look at what easy money has done to actors, athletes and lottery winners.
A big reason we have the big line of credit we do, is that we print the currency that can pay the debts we pile up. This means more money (M2 type, as in the referenced article) and more inflation. Yes, inflation is a monetary phenomenon, but - in the long run - inflation is, because the money supply is a fiscal phenomenon.
The author of the article (Lance Roberts of RIA Advisors) is IMHO hands down one of the most straight shooting, best Financial experts out there.
He does a radio show in the Houston area that’s now also broadcast live from their studio via YouTube M - Th. Friday, they have two other guys filling in for “Financial Fitness Friday”. Lance also occasionally shows up on Fox Business with Charles Payne..
Can’t recommend Lance’s daily show enough. I watch it every day while working out in the AM and it’s absolutely fantastic. “Must see” for anyone looking to get a straight, no BS view on markets and money.
There’s also a free newsletter that they send out daily with some very good market insight, technical analysis, and a bunch of other great content.
Of course, they’re presumably doing all of this to fish for new clients but I’ve been getting the newsletter and watching the show for months. Even talked 1:1 with Lance at one point. Determined their fee structure wasn’t something we wanted to incur but to their credit they haven’t pestered us in any way since..
But back to his premise..if Lance says it, trust it. He’s in my experience as straight up as they come, and he really knows his stuff.
Complete BS. Just look at oil and natural gas future prices. Energy is used in the manufacture and delivery of everything you buy. You use it to heat and cool your home. Prices are going up, not down.
may
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Now get ready for high inflation June.
Thx for the post. I can see so many possibilities. Time will tell.
I think it may be premature to say peak inflation is behind us. Too many unknowns.
A scheme to deny SS cola payment for next year?
Let us not forget that Democrats will print money whenever they need it, and to buy votes. It will not stop.
Biden has in reased the US money supply 36% since taking office. Only a devaluation of the dollar can mask inflation. SPX is up 29%. NASDAQ up 19%. Gold us up 7%. Tesla is beating inflation and BTC as well.
As long as the Bidenistas maintain their war on petroleum the price of fuel will continue to rise.
As long as fuel prices keep rising the price of everything transported by fuel powered trucks, trains, boats and planes will increase.
Try to think of anything in your home that was not transported that way.
When the prices of virtually every commodity on earth rises the dollar purchases less.
By any sane definition, that is inflation.
It’s also one of the most nonsensical articles I’ve seen in months.
Gasoline is at it’s highest point in history. Trucks are sitting empty. Shelves are empty in some places.
So the transportation costs are the highest in history. Shortages are present.
What happens to the price of something in short demand? What happens to
the price of something that has to be trucked in paying the highest shipping costs ever? What happens to our currency when it is printed faster than ever
with no end in sight?
My advice to the author is put down the airplane glue and push away from the table.