Retirement Lifestyle Advocates
The Fed will HAVE to either destroy the currency or destroy the economy.
I believe that the odds are fairly high that we may be on the verge of repeating the financial crisis; the downside for stocks from here could be greater than in 2007 – 2008.
As Americans are trying to deal with the inflationary environment, credit card debt has been rising – now topping $1 trillion for the first time in history.
As I have been stating here for a VERY long time, when there is too much debt to be paid, it won’t be paid. And, since banks have debt as assets, when debt goes unpaid, banks fail.
Since 2008, worldwide debt has increased from about $100 trillion to about $300 trillion.
Eventually, inflation will give way to an ugly deflationary environment. In the meantime, we will probably see stagflation – rising consumer prices and falling asset prices.
History teaches us that when governments overspend and central banks over print, eventually reality sets in.
Ever since 1971, when the US Dollar became a fiat currency, and new currency has been created by loaning it into existence.
For many years I have written about how economic data is often ‘massaged” (or manipulated?) to make the reported numbers look more favorable.
Ever since the time of the Great Financial Crisis, I have written about the topic of bubbles.