Debt levels at the present time are at record levels, with no hope of all of the debt being paid with ‘honest’ currency.
As I have been stating here for a long time, if there is too much debt to be paid, it won’t be paid.
While the fact that we have witnessed inflation over the past several years is indisputable, the annual rate of inflation is perhaps a bit unclear.
Eventually, one of two things happens. Either the currency creation continues, and the currency is eventually destroyed, or the currency creation stops in time to save the currency, only to see a period of painful deflation materialize.
Seems that deflation is emerging. And the Fed is poised to use the only tool they have left. Long term, it can’t work.
Despite the reported inflation numbers and the reported jobs numbers, the economic reality is that nearly two thirds of American households are living paycheck-to-paycheck.
Inflation has eroded the purchasing power of the US Dollar over the past two years; IRA and 401(k) investors who are invested in stocks have seen the real value of their investments fall.