It's Not Transitory, It's the New Normal: The dollar’s demotion will be painful

Gian

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It's Not Transitory, It's the New Normal: The dollar’s demotion will be painful

@Panzerhund @TimeBandit @Highlander

“The dollar’s demotion will be painful. Americans’ monetary standard-of-living will decline. It’s been a year now and it’s still hard to know if the things you’re looking for at the grocery store will be there. As it becomes increasingly clear that the perpetual shortages of products and labor are no more transitory than inflation is, prices will rise substantially to reflect reality. It’s nice when the house or the 401(k) goes up 10% in a year. It’s not so fun when the price of bread and milk do.”

Consumer prices beat consensus estimates for the fifth consecutive month. Again, we’re told it’s transitory. It was another bad month of weather for the harvests just like it’s another bad month for the cost of cars. Even if the annualized rate falls back from 6% to 2%–which it won’t–it wouldn’t be transitory. Transitory requires the second part of the year to come in at a deflationary -2%. That’s how things get back 2% for the year. Easy peasy, ha!

Or maybe not ha!. Treasury yields fell on the CPI beat. The 30-year is down on the week, paying a measly 2.15%. The Fed is going to tighten so hard nominal prices will fall! If consumer price decreases are coming, a guaranteed 2%+ return is the perspicacious play!

In seriousness, tie your money up for 30 years to earn an equivalent real yield of -4%? Who would possibly be so dumb?! AT&T dividends are thrice that. Nobody who isn’t a central bank is going to buy long-term treasuries. Lender of last resort takes on a new meaning!

The TreasureFed is holding rates down because if they were allowed to clear the open market, rates would fly up to 5% or 10%, sending the economy crashing in a way that makes 2008 look like a walk in the park by comparison. The longer rates are artificially held down despite ever-increasing trade and budget deficits, the more the rest of the world will pull out of the dollar market.

 

CharlesWorthing

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When normies start looking for a bolt hole to stash their savings/retirement inflation hedge assets are going to go through the roof.

Then the commies will confiscate the roof and the rest of the house with it. Bullish for crypto/gold.
 

Christopher

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In seriousness, tie your money up for 30 years to earn an equivalent real yield of -4%? Who would possibly be so dumb?! AT&T dividends are thrice that. Nobody who isn’t a central bank is going to buy long-term treasuries. Lender of last resort takes on a new meaning!
The "shell game" needs players, the tie-up of fiat currency in treasuries is another carnival/shell act.
 

Jay

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@Gian ... this sh__ is about to get real

Most people (idiots) have no idea what's coming.
Even if most predictions are wrong and the U.S. "only" suffers 7-10% inflation on average. Well that means everything will cost twice as much in 7-10 years. No matter what anyone does.
50% of the U.S. population will be lucky to have a job by then and of the other 50%, only 20% will keep up with inflation.
So you will have 80% of the population in poverty or going into it bit by bit ever year, if they use fiat currency.
 
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Jim Hansen

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Even if most predictions are wrong and the U.S. "only" suffers 7-10% inflation on average. Well that means everything will cost twice as much in 7-10 years. No matter what anyone does.
50% of the U.S. population will be lucky to have a job by then and of the other 50%, only 20% will keep up with inflation.
So you will have 80% the population in poverty or going into it bit by bit ever year, if they use fiat currency.
Yep - much much much worse than the Great Depression.
 

DaveA

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If it's any consolation, the bacon-hoarding bitches who staff federal, state, and local agencies will get hit the hardest. They have absolutely no useful skills and no one wants to see their flabby asses on OnlyFans. Sex will get very inexpensive because its supply is elastic while its demand is not. E.g. you pay a street vendor $100 million for a sandwich. When you've eaten half of it, a desperate single mother offers you a blowjob for the other half. Your dick is tired from the three blowjobs you received earlier that day, so you say "no thanks" and finish your sandwich.
 

sir_andy_of_bad

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You sumbitches better invest in a rifle and bullets to shoot out of it. These financial declines were rough enough when we were a homogenous society. You're gonna be competing with niggers, aztecs, and muslims for resources now.
Seems that ammo is becoming available again, but with David "Cocksmokin over burnin' baby bones'" Chipman at the helm of the ATF, I think they're going to make a major major push to tie our finances to our 4473 records. They're not going to go house to house confiscating, but they'll make it extremely uncomfortable to own them. I'd love to see that faggot receive even one tenth back of what he did to those innocent folks at Waco.
 

OzzyBonHalen

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Soy milk, meal worms and thai-chili flavored black beetles will always be affordable proteins goyim.

IDK, it seemed to work for John The Baptist. He was kind of an 'off the grid' type of Prophet who was self sufficient and dependent on no one.

And the same John had his raiment
of camel's hair, and a leathern
girdle about his loins; and his
meat was locusts and wild honey.

Matthew 3:4
 
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