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>Both wage growth and inflation are unusually high Lots of people talking about housing bubbles and such. There's no burst coming or if there is any dip it's g

>Both wage growth and inflation are unusually high Lots of people talking about housing bubbles and such. There's no burst coming or if there is any dip it's going to be small. Instead we are going to have inflation take off. USA is running about 5% inflation. https://tradingeconomics.com/united-states/inflation-cpi https://tradingeconomics.com/united-states/inflation-cpi The central bank 'balance' is not balanced by any intention. https://tradingeconomics.com/united-states/central-bank-balance-sheet https://tradingeconomics.com/united-states/central-bank-bala... In fact the Fed is bankrupt, very bankrupt. https://tradingeconomics.com/united-states/money-supply-m0 https://tradingeconomics.com/united-states/money-supply-m0 A ton of money is being printed. The USA was bankrupt in 2009, and they sure know it. https://tradingeconomics.com/united-states/money-supply-m1 https://tradingeconomics.com/united-states/money-supply-m1 400% increase? LOL? This can be clawed back, it's not set it stone. https://tradingeconomics.com/united-states/money-supply-m2 https://tradingeconomics.com/united-states/money-supply-m2 This is showing what is set it stone. About 24% is coming in the next year or 2 and ~40% locked in for the near future. Worse yet, if the fed doesnt claw back the money, that 40% will go much higher. 10-15% interest rates are coming. What's so unusual about high inflation? The US government printed nearly 400% more money to keep the bond market from collapsing just like all other countries. The consequence of this was known at the time, major inflation.

paulpauper 5y ago
I agree. The pundits for the past decade have been predicting a day of reckoning ,deflation , prices falling ,etc. Not going to happen. It's more of a flight to quality of the top asset classes, such as bay Area homes, biggest of tech firms (such as Amazon and Tesla), biggest and safest of currencies and investments (such as treasuries and the US dollar). Monetary policy is playing a role, but I think also this 'flight to quality' trend is as well.
- newaccount2021 5y ago
  "flight to quality" ...i.e. chasing overinflated assets even higher the time to flee to assets is BEFORE the inflationary bubble, not DURING it
dnautics 5y ago
It's an awesome plan. Tax the rich, then make everyone "rich" so we tax everyone at a higher rate, except that the truly rich are really good at finding loopholes. Punish the poor and the honest, while gaining virtue points for "taxing the rich".
mohanmcgeek 5y ago
This post has a lot of misinformation. For starters, fed is a bank and the bank cannot go "bankrupt" in the usual sense. The United States (government) was not bankrupt in 2009. If it were, it would have defaulted on their loans. The m0 and M1 money supplies most certainly do not have any meaning in the modern world where transactions take place digitally: There's going to be no coin shortage ruining daily commerce. Not even remotely close to what's being discussed. > The US government printed nearly 400% more money to keep the bond market from collapsing. The fundamental misunderstanding seems to be from what you think happens when you say "print money". What you said is the equivalent of saying "The US government borrowed more money from the federal exchange to makesure the bond market thinks the government is good for the old loans.."
- mohanmcgeek 5y ago
  Federal reserve*
lamontcg 5y ago
> Lots of people talking about housing bubbles and such. There's no burst coming or if there is any dip it's going to be small. [...] > 10-15% interest rates are coming. you have a glaring inconsistency showing

paulpauper 5y ago

I agree. The pundits for the past decade have been predicting a day of reckoning ,deflation , prices falling ,etc. Not going to happen. It's more of a flight to quality of the top asset classes, such as bay Area homes, biggest of tech firms (such as Amazon and Tesla), biggest and safest of currencies and investments (such as treasuries and the US dollar). Monetary policy is playing a role, but I think also this 'flight to quality' trend is as well.

newaccount2021 5y ago
"flight to quality" ...i.e. chasing overinflated assets even higher the time to flee to assets is BEFORE the inflationary bubble, not DURING it

dnautics 5y ago

It's an awesome plan. Tax the rich, then make everyone "rich" so we tax everyone at a higher rate, except that the truly rich are really good at finding loopholes. Punish the poor and the honest, while gaining virtue points for "taxing the rich".

mohanmcgeek 5y ago

This post has a lot of misinformation. For starters, fed is a bank and the bank cannot go "bankrupt" in the usual sense. The United States (government) was not bankrupt in 2009. If it were, it would have defaulted on their loans. The m0 and M1 money supplies most certainly do not have any meaning in the modern world where transactions take place digitally: There's going to be no coin shortage ruining daily commerce. Not even remotely close to what's being discussed. > The US government printed nearly 400% more money to keep the bond market from collapsing. The fundamental misunderstanding seems to be from what you think happens when you say "print money". What you said is the equivalent of saying "The US government borrowed more money from the federal exchange to makesure the bond market thinks the government is good for the old loans.."

mohanmcgeek 5y ago
Federal reserve*

lamontcg 5y ago

> Lots of people talking about housing bubbles and such. There's no burst coming or if there is any dip it's going to be small. [...] > 10-15% interest rates are coming. you have a glaring inconsistency showing