from Kerry Lutz's Financial Survival Network
Ever since the election, the 1970s type of inflation has come into full swing. Bob Hoye has observed that the big game in the financial markets is inflation and financial assets. Hoye has looked at the history of these financial bubbles and the patterns that accompany them to determine what we can expect out of the current circumstances.
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I am long time friend & admirer of Bob Hoye.
great interview
Debt is deflationary. When fractional reserve banking goes in reverse watch out.
Massive money printing and huge dual deficits & KEY Fed interest rates at/ near zero imply a serious surge in inflation. DEFLATION will follow an inflationary, even a possible hyperinflationary period. Debt is deflationary, agreed. However, the FED has changed the rules on interest rates. Paul Volker is not in charge. Powell is; and he jumps like a scared rabbit when the President’s complain about rates or slow economic growth.
The FED’S behavior changes the eco. forecast. Powell should have the Fed Funds Rate near 4%. The 10 yr T Bond should be yielding 5.7% to 7%, assuming inflation is running at 6.2% (vs Shadow stats calcs on inflation that are probably double the official rate.)
Debt is deflationary when it is priced fairly, not artificially, as the FED has done, by suppressing the level of real interest rates.
recently at the Cop20 Carney said 100 trillion dollars would be created to finance the conversion from co2 industry to electric… all that worthless capital distributed into the market casino game will extend this charade well past the time lines expressed by Mr. Hoye