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To: aMorePerfectUnion

Inflation requires velocity of money—and unless .gov plans monthly _big_ stimulus checks every month for years and rent and mortgage forbearance indefinitely, the velocity of money in this economy will remain at a stunning low level.

Poor people just don’t have money to spend, and they are most of the people in the US these days.

Meanwhile illegal aliens and mechanization will crush labor costs.

In addition, other countries are inflating their currencies like crazy, so the dollar remains the biggest boat in a sinking sea.

The world economy is in crazy unknown territory—eventually the whole thing will crash in an insane depression imho.


7 posted on 03/22/2021 9:35:09 AM PDT by cgbg (A kleptocracy--if they can keep it. Think of it as the Cantillon Effect in action.)
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To: cgbg
In addition, other countries are inflating their currencies like crazy, so the dollar remains the biggest boat in a sinking sea.

Back in the Carter inflation (mild compared to what's coming) one of the economists used this analogy: "The Ship of State is adrift in a sea of fiat currency and the Fed is using the rudder as a paddle."

Seems to apply even more so today.

44 posted on 03/22/2021 2:45:13 PM PDT by Oatka
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