It appears to me that the recovery is fake but the inflation is real. It also appears that inflation is much higher than is being reported and I see no end in sight. …
It appears to me the only way to stop inflation now would be to raise rates (virtually impossible because of the record debt at all levels of society), stop “printing” money (impossible because rates would likely rise uncontrollably leading to a crash of all artificially supported assets like stocks, bonds and real estate) along with all of the derivatives that have been created for leverage. This would likely lead to an economic ice age like the world has never seen.
It seems pretty obvious that our “leaders” will take the same path that our ancestors took and keep “printing” our currencies into oblivion. We are WELL on the way.
Richard Russell (deceased of Dow Theory Letters) once said and I agree 100%: “The only currency that cannot be destroyed is gold. When investors realize this we’ll have the makings of the greatest bull market in gold ever seen.”
Many countries, including our own, are issuing new debt and conjuring up cash out of nowhere to pay current bills, roll over current maturing debts and pretend we are still solvent. We are creating more debt to treat the disease of being over-indebted. This was taking place LONG before any virus showed up. It is a convenient excuse for those in charge to not take the blame for what is coming our way.
In looking at history it appears the most likely outcome is some form of centralized government with likely a tyrant in charge. It will probably take an outcome like that to quell the violence that is likely to take place when those wronged by the few (mostly every person outside the 1%) realizes what has happened.
Central banks and major banks are buying EVERYTHING from gold, silver, companies, real estate, bonds — you name it. In many cases they are buying and concealing their ownership with complex shell company schemes …
Logically, if money is being manufactured at a great rate, those who receive the newly manufactured money will end up buying and owning most everything.
If I had the world’s only money-manufacturing machine, I could buy the entire world and own everything. (Approximately, with obvious caveats.)
Commercial banks have done most of the manufacture so far (since the bubble began in 1982). Customers who borrowed from those banks received most of that money, and are now the biggest owners. But since the GFC in 2007, the central banks have increasingly done a greater share of the money manufacture. As the crises grow, their share is increasing. So they are owning ever more assets.
Taken to its extreme, as for instance in a fierce inflation, the central banks will own most everything. For example, even by 2016 the Bank of Japan, Japan’s central bank, owned 7% of the Tokyo stock market.
Perhaps this is the future projected by Klaus Schwab of the World Economic Forum: “You will own nothing but you will be happy”.