I have been thinking for some time what the natural consequences of a financial system that prints money at will and a government that runs debt fuelled budget deficits will be?
The obvious answer is that we will see runaway inflation. However we haven’t seen that in the conventional sense as core inflation as measured in the classic sense is benign. What we have seen is massive asset inflation in stocks, real estate, art, gold and the like. So you are probably asking is that bad?
The problem with this kind of inflation is it creates an ever growing inequality gap between the haves and the have nots. You may say tough luck. The problem with a society that leaves behind the 95 – 99% is that it creates socioeconomic instability.
We have a 78 year old socialist who is so far left that he makes my radical daughter seem centrist as the front runner for POTUS.
The physics of life in all forms is a system of cause and effect. You cannot simply create wealth by a printing press or borrowing money and spraying it all over the place. Wealth is created by productive investment of savings.
The “Bearman” is back and I am becoming increasingly interested in the psyche of the US voter. The stockmarket is not my primary focus now.