Commodities, Stock Market and Bank Reserves.
Our REAL economy is 60-70% of what it was 5 years ago and our stock market is at record highs along with commodities. However, the combined value of stocks and commodities is dwarfed by the scale of mortgage defaults past and future.
Deflation combined with sovereign default will be the outcome.
“Commodities, Stock Market and Bank Reserves.”
I would agree with you if we were talking M2 or M3. But I’m not. M1 is the total currency held by people outside of banking institutions plus checking accounts. And M1 has been going up hugely as compared to M2.
More deflationistas!
Imagine a great big rock that people are trying to hold back. Then China throws in everything they’ve got to try to push the rock back.
Once this stash of China’s is done, that’s it folks. This is all they’ve got.