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It really feels like we are at the end of the road and the Fed is damned if they end QE (deflation and market crash) and dammed if they don't (very high inflati
by justinzollars 5y ago
It really feels like we are at the end of the road and the Fed is damned if they end QE (deflation and market crash) and dammed if they don't (very high inflation). Ray Dalio does a great job describing the end of the the "long-term debt cycle" and differentiates it from a typical "business cycle" that we are all familiar with [1]. The scary thing he describes is the end of a fiat money system, which will resemble a bank run, but for goods and services rather than for dollars.
[1] https://www.linkedin.com/pulse/money-credit-debt-ray-dalio https://www.linkedin.com/pulse/money-credit-debt-ray-dalio
- anarticle 5y agoA run on goods is demand gone wild, aka hyperinflation.
- realce 5y agoPair this with the reduction of ownership of ANY real assets/goods in the general population. I can't trade my Netflix account for food. I cannot lease my Spotify account to someone for income. I rent my house. I think when you get down to the nitty-gritty, most people actually "own" some furniture, some clothes, and a car. If a crisis actually struck, what goods or services could you actually leverage to survive off of?