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Inflation, deflation, GDP, unemployment; choose your favorite area, G7 nations
"The Federal Reserve is trapped. It is impossible to slow stock market growth without increasing at the same time deflationary risks on the economy. If the federal funds rate remains intact, it will be evident that the United States is much more vulnerable than the world has believed. ... The financial bubble continues to creep up and sooner rather than later it will explode." - Thanks for the link Catch.
There are many contributors to the deflationary tendencies around the world. I'll submit that at least one of these is we "boomers." I can say more on that if you'd like, but the connection may be obvious.
Wouldn't dismiss the potential for a short severe bout of deflation. However, when dealing with paper curriencies printed using laser printers, ink-jets or whatever other tools they choose to employ, the longer term threat is always inflation. (Point being: ink and paper don't cost that much.)
I have a difficult time seeing an overall U.S. stock market bubble. I think back to when I retired some 16-17 years ago, and the DJI was sitting at around 10,000. Not very scientific - but a mere doubling of that index over such a long period does not appear on the surface unusual.
Deflation - but not the 1930's type. It will be more like low interest, low to no wage growth with prices in housing and health care increasing. Then investors and workers will get increased taxes and a VAT at some time.
Comments
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Thanks for the link Catch.
There are many contributors to the deflationary tendencies around the world. I'll submit that at least one of these is we "boomers." I can say more on that if you'd like, but the connection may be obvious.
Wouldn't dismiss the potential for a short severe bout of deflation. However, when dealing with paper curriencies printed using laser printers, ink-jets or whatever other tools they choose to employ, the longer term threat is always inflation. (Point being: ink and paper don't cost that much.)
I have a difficult time seeing an overall U.S. stock market bubble. I think back to when I retired some 16-17 years ago, and the DJI was sitting at around 10,000. Not very scientific - but a mere doubling of that index over such a long period does not appear on the surface unusual.
https://en.m.wikipedia.org/wiki/Closing_milestones_of_the_Dow_Jones_Industrial_Average
Fun time ...
Already is!
>> Then investors and workers will get increased taxes
Not sure that will happen
>> and a VAT at some time.
As you keep harping, and it is indeed probably a good idea, or at least better than alternatives.
http://budget.house.gov/budgetanalysis/the-president-s-fy-2016-budget.htm
http://www.atr.org/full-list-ACA-tax-hikes-a6996
- try to keep up