Many have been proclaiming that the “Everything Bubble” that we have been witnessing will burst and the world will witness an economic crisis that we may have never seen before. Looking at the declines in the Stock Market Indexes on Friday and many are waking up to the possibility that we are closer than any of us want to be to the burst of the “Everything Bubble”
Look at any asset class and we can see the extent that inflation has impacted our macroeconomic variables and that massive price increases are headed for the market. Things are going to get so expensive that liquidity will be pulled from the system, making things so expensive for anyone to purchase.
The Fed will do their best to inject liquidity into the system before we fall into an economic hyper-inflationary depression but if they get their calculations incorrect, either way, by injecting too much capital or not enough capital and we fall into a hyper-inflationary or deflationary depression.
So, we are depending on the math of the Fed…….
That notion should scare everyone who reads the sentence. The Fed has yet to tell the truth or do what they should to save this economy. Now we must believe that their math will be correct when they have already corrupted the collected data. Pulling a rabbit out of this hat will be truly a miracle.
So we are headed down a crazy path either way. If the Fed interjects to little capital and we run into a repeat of the 1930s except this time the harm will be irreversible.
If they tighten just enough to get the little investors out of the market and interject liquidity into the corporate players and they will be able to suck up the majority of the assets while the masses do not have the same ability to gain liquidity. By doing this, they intend to control inflation by limiting the amount of players in the system and gathering all the wealth at the top. Then they can price fix and bring inflation under control.
Sounds like a great plan and kind of mimics the sediment within the economy that we are headed to a time when we will own nothing and like it. Come on, you didn’t think they would inject liquidity into the average public again? They will only do this as a last resort to fix what they broke.
By give everything to the top and then they can control the amount the dollar gains and loses value, thus fixing the inflation problem.
The problem is that this is absolutely horrible and unethical to the average man. What will life be like when you have no money, no home, no job, are sick all the time and have no access to health care? This may be the solution that was talked about when the Masses were called “worthless eaters”.
The problem economically is this would not last longterm. Globally that economic system would be devoured in a heartbeat and would not win against the coming economic currency wars that are brewing. You can have all the money in the world but if no-one wants to use it, its worthless.
For the average investor, this is a horrifying landmine to try to navigate. That is why everyone only focusses on what the fed says as they are the only player in the market at this time. Their actions influence everything.
We can be either reactionary or proactive toward what will come our way. Our future is uncertain but we must prepare the best we can. We must organize what we have to prepare for what is coming. We must understand what is happening so that we may understand what is coming upon our world.