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To: reed13k

My view is that stocks and gold will both continue to rise because the values of ALL currencies are falling, more-or-less together, as the money powers attempt to prevent economic collapse due to cessation of economic activity (similar to 2008-2009 but MUCH MORE SERIOUS).

In other words, in our present economic environment, cash is trash. (Meaning: If you hold onto it it will simply waste away in value.)

We don’t see price inflation in most of the things we buy because of the reduced demand in many key areas; so sellers are not able to raise their prices.

In the Weimar Republic (post-WWI Germany) cash became worthless but the holders of land and also industrial assets (e.g., factories) did just fine.

In today’s America, the equivalent of land and factories would be owning stocks.

Another reason for the rise in stock prices is that with the incredibly low interest rates, there is no money to be made in bonds.

We are in an odd time when inflationary forces and deflationary forces are both blowing strong.

One wouldn’t want to get caught pissing into the wind.


1,625 posted on 07/30/2020 2:39:13 PM PDT by Disestablishmentarian ("the right of the people peaceably to assemble")
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To: Disestablishmentarian
We are in an odd time when inflationary forces and deflationary forces are both blowing strong.

Is that a stalemate or an impasse?

1,676 posted on 07/30/2020 4:47:11 PM PDT by numberonepal (WWG1WGA)
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