Political Upheaval and Insurmountable Debt Could Trigger Hyper Inflationary Bust.
In this report I cover the early market action from London on Friday, August 18th, 2017. I also look at the present political climate in the US and compare it to the period of huge upheaval in Germany during the Weimar Republic.
From inside the U.S.A., there is more social interest in the upcoming football season than there is in economics or political trouble. It will take a natural disaster like an earthquake to shake us up (sorry for the pun).
I agree with that. I am always following economics but politics just flat out depresses me. This is a category where I feel helpless so I do not put in the time or effort.
Yes, I am also ready for college football to begin. When you live in a college town is becomes part of the cycle of your life.
Here in England the football season has just started. Football means soccer to you though.
Here is hockey season about to start, sheeple will forget about the migrants crisis here in Canada.
Loss of confidence in a western currency is highly unlikely because people don't get paid or transact much in cash. They are all part of a big corporate system which means salaries and prices can be more easily controlled. High inflation yes, hyper-inflation - I just can't see it.
I think a more likely outcome is hyper-stagflation where the price of imported essential goods increases significantly, while debt funded assets start to collapse. So food, energy (and transport) and medicines will, and indeed are, seeing big increases, while consumer goods funded by credit, houses and cars will collapse. Essentials are already increasing massively, just look at rail fares and shrinkflation in food. What we haven't yet seen in the UK is a collapse in debt related assets - that will come when interest rates begin to edge up.
Just because there is not as much transaction in paper cash it doesn't mean people cannot get rid of their cash and buy real things through their debit card.
I would love to see the stock market go down and a slight bump in metals. I do agree that until the deep state is under control american citizens and american politics is always going to be in a defunctional state.
Our government organizations have too much power and require too many resources in my opinion. Again, I cannot change anything about it so I need to focus on my economy and my relationships.
This post has been ranked within the top 80 most undervalued posts in the first half of Aug 18. We estimate that this post is undervalued by $9.84 as compared to a scenario in which every voter had an equal say.
See the full rankings and details in The Daily Tribune: Aug 18 - Part I. You can also read about some of our methodology, data analysis and technical details in our initial post.
If you are the author and would prefer not to receive these comments, simply reply "Stop" to this comment.
I think the real event will come from China's non-performing loan problem. They have a massive amount of credit that is looking like a huge default risk.