Inflation or deflation? In my view, we are transitioning, and despite their insistence to the contrary, I expect the Fed will once again resort to some version of currency creation as we enter 2024.
I expect more inflation in things we have to buy like groceries, while things we own will see values fall due to deflation.
The US debt default will eventually arrive. Probably not an outright default but an inflationary default as newly created, hugely devalued currency is used to pay off old creditors.
As crazy as currency changes were in 2023, it’s highly likely that 2024 will see even more significant changes.
Seems that we are seeing evidence of both inflation and deflation, a direct result of currency creation and debt excesses.
While the timing of this inflation followed by deflation cycle is difficult, even impossible to predict; the outcome is, in my view, inevitable.
With every day that passes, we are moving closer to a debt crisis that is simply inevitable.
It’s an often-overlooked point: currency devaluation makes reported economic data appear better than it really is.
It’s no secret that I have been forecasting stagflation – defined as a contracting economy (recession) and rising consumer prices.
I have long held that the economic boom we’ve experienced since the time of the Great Financial Crisis of 15 years ago has been largely the result of the artificial, easy money policies that the Federal Reserve and other central banks around the world have been pursuing.