Baby BOOMERS..!! Is the World on the Verge of Global HYPERINFLATION..??
DEBT, DERIVATIVES and Global HYPERINFLATION
There appears to be more people now talking about HYPERINFLATION now than ever before.
As Global STOCK MARKETS are hitting all time highs is this alone telling us the direction of Fiat CURRENCIES.
The loss of confidence in the Political System is a barometer for the loss of confidence in the CURRENCY and there are signs that this is manifesting.
BREXIT and TRUMP was no coincidence..!!
People are simply fed up of being lied too, manipulated and cheated on and this is transitioning in the recent ballot box results in the WEST.
I am not saying that we are witnessing total Political Mayhem and Instability in the populous but for sure we are seeing a clear split in opinions and views as to the Political Direction people which to take.
We are living in challenging and testing financial times with Global DEBT growing at an alarming rate and at pace that exceeds GLOBAL GROWTH and INFLATION.
In order to compare where the WEST is in terms of Political Instability you have to go back over 60 years as far back as post The Second World War and even then the amount of DEBT does not even come close enough in comparison with Gross Domestic Productive (GDP) and more importantly GROWTH potential.
Current DEBT is one thing but it is the Unfunded Future DEBT and LIABILITIES people should be REALLY afraid of.
It is the sheer size of the Unfunded Future DEBT that has the potential to trigger a HYPERINFLATION scenario alone.
Fixed Income Pension Funds which contribute a huge proportion of this Unfunded Future DEBT are set to be hit the hardest with incomes in essence being totally evaporated in a HYPERINFLATION environment.
This total evaporation is set to bring a huge problem to the BABY BOOMERS now approaching retirement.
FINANCIAL DERIVATIVES that have been in place since the mid 1980's have help to distort ASSET VALUATIONS and push back the inevitable.
They have only a limited amount of influence over time and this time is NOW UP..!!
A POLITICAL HURRICANE is brewing and it is simply not matter of if it hits the shore, but when, and not all the DERIVATIVES in The World would be able to shelter us from the INEVITABLE..!!
This is serious, this is VERY SERIOUS..!!
Thanks for reading.
Stephen
Just wish it would arrive so we could begin to build again.
Hyperinflation would be great! It would make all house owners rich, eliminate debt and catapult crypto.
Who are all these rich home owners going to sell these over priced homes to ?
Not to mention how are they going to pay the property taxes when they are almost as much as the house note ?
They don't even have to sell them, but their mortgages will be eliminated.
And taxes won't adjust until the house is re-sold. Property taxe sis also an American thing.
The thing that people mis understand is the thought that everything about inflation is bad, but there are also good sides to the story. Anyone with debt profits and anyone with cash hurts. Since few people have cash and everyone has debt, it's a good thing for most these days.
You can easily exploit this situation by take on debt, buy assets such as houses or crypto ir stocks and the eliminate the debt by waiting for inflation to kick in.
What we are witnessing and has worsened since the mid 1980's is the detach from wages to house prices and house prices to daily essentials. Since 2008 house prices have soared purely based on debt availability but wages have not kept pace, nor has the cost of basic essentials. If you look at the cost of the pure labour content to build a house compared to the cost of the house when built you will see the problem. There are huge distortions across the whole market and these have been exaggerated by the use use of Derivatives. Take Silver alone over the last 100 years. On average the average house price could be bought for 500 ounces of silver and in the early 1900's a daily wage was 1 ounce of silver. Extract this to todays silver price of $17oz that would leave an average house $8,500 and a daily wage of $17..!! There lies the problem. Thanks for the comment. Stephen
Yes this is true. People truly misunderstand how the housing market is overpriced due to cheap debt.
I need to buy a house soon and I am worried, but then not having the asset of a house is also a great risk in this money tray system.
You are right. House prices are way over-valued purely because of cheap credit. Could you imagine if interest rates were 7, 8, 9 % +++..!! As a rule of thumb a first time buyer should be looking at buying a house at approx x3 salary. That is $50k salary, house price $150k. Anymore and the odds are against you. Thanks for the comment. Stephen
The banks will not loose, they will call the note as the agreement specifies they can... read it carefully, hopefully yours is different. Even those that always paid on time may be at risk... because again, banks do not loose (and this did occur in the 1930's as a matter of historical import.
The banks can't lose in an inflationary system. Why would they lose?