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overtheedge
Member since May 2012
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Fed?s Serious Inflation Risks - Adam Hamilton - Zealllc

Excellent. Too bad this is the harsh reality:
"So the idea that there are big risks of serious inflation breaking out is hyper-contrarian heresy, widely ridiculed."
Obviously many so-called analysts have failed to read LvM and perhaps some who have, have found LvM to be contrary to their belief system.
These same analysts will never grasp the simple truth that as MZM increases, the buying priorities of those using the money changes.
Increases in wages can delay this process for awhile, sometimes.
As discretionary monies decline, increasing debt load becomes exceedingly difficult to impossible.
No increase in debt loading prevents interest generation to service existing debt.
Interest generation absolutely requires inflation. THERE IS NO OTHER WAY OUT!!!
Interest generation is for all practical purposes, a Ponzi scheme.

I do have a problem with this:
"Gold and its leading ETF, the GLD SPDR Gold Shares, will thrive as prudent portfolio diversification returns to favor."
Perhaps initially, but as the system begins to fall apart there is every possibility that government may see these gold stockpiles as low hanging fruit.
Can we spell "cash settlement"?

Darwin's "Survival of the fittest" is not about strength, but rather ALL about adaptability to the changing operative environment.
Debt is a contraindication of survival fitness.
Debt is paid out of future energy profit/loss streams.
Money is nothing more than a commodity that represents a positive energy credit and inflation robs you of the credit value that was earned years ago.
The inability to adapt signals the onset of a large decline in this energy income stream. Debt remains.
There will be no more "I'll pay you on Thursday for a hamburger today".
For those of you that still don't get it and seek a date-time group of when this will transpire, here is a hint:
For many, many families, both domestic and foreign, it has already occurred.

Thanks for having the intellectual courage to restate what should be, but isn't, obvious about inflation and deflation. So few authors and analysts can see past their flawed belief system or perhaps the conflict between honesty and their income stream.
There is no deus ex machina.
Central banks continue to do the same thing over and over again in hopes of a different outcome. Why? Belief, idiocy or maybe it's just their job.

“In your dread of dictators you established a state of society in which every ward boss is a dictator, every financier a dictator, every private employer a dictator, all with the livelihood of the workers at their mercy, and no public responsibility. And to symbolize this state of things, this defeat of all government, you have set up in New York Harbour a monstrous idol which you call Liberty. The only thing that remains to complete this monument is to put on its pedestal the inscription written by Dante on the gate of Hell ‘All hope abandon, ye who enter here.’”
George Bernard Shaw

Commented 3275 days ago

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Beginning of the headline :Traders today universally believe inflation is dead, that there is no persistent decline in the purchasing power of money. That?s what government price indexes around the world are indicating. But this false notion is one of recent years? main Fed-conjured illusions. Price inflation is the result of rising money supplies, and they have been skyrocketing. Serious risks are mounting that they will spill into price levels. As simple as money seems, it ... Read More

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