Inflation follows the money supply. The worse it is the quicker the economy feels the effect. We are about to see the worst inflation of US currency in living memory.
Posted on 06/15/2021 12:46:35 AM PDT by knighthawk
JPMorgan's longtime CEO Jamie Dimon says America's largest bank is currently 'stockpiling' cash because there's a 'very good chance' inflation is here to stay after being driven to its highest level in 13 years.
Dimon said on Monday that JPMorgan is not buying Treasuries or other investments because of the risk that surging inflation will see the Federal Reserve increase interest rates.
'We have a lot of cash and capability and we're going to be very patient, because I think you have a very good chance inflation will be more than transitory,' Dimon said during a Q&A at Morgan Stanley's US Financials Conference.
(Excerpt) Read more at dailymail.co.uk ...
Sit on a pile of rapidly depreciating cash during high inflation?
Why do that?
Generally (it’s not always)....high-dividend stocks decline, so staying in those doesn’t make a lot of sense. Adding to this philosophy, most stocks in a high-inflation period...will have a higher volatility going on. So you would hope that the Fed, and the President at the time...would work to limit the higher inflation and recovery would be noted a year or two down the path....to wisely jump into a better investment situation at the right time.
As an alternative to locking it into longer term loans or bonds at a fixed rate. He’s advocating a very short term and fully liquid asset.
“we’ve actually been effectively stockpiling more and more cash waiting for opportunities to invest at higher rates.”
Seems risky. That pile of cash is not generating any revenue right now, and the longer you wait the more it reduces in value.
Wait, according to the Left, there is no inflation..../s
The FED is about to raise interest rates. The banks need all the cash they can get their hands on, so that they can loan it out at the new higher rates.
I suspect he doesn’t want to be in low interest rate bonds when interest rates finally go up to break the inflationary cycle.
And avoid falling bond prices when rates go up.
Distraction.
When the dollar is high, the gold price is low. They are likely buying metals and other commodities.
Why do that?
A better question is why SAY you are doing that?
History says TPTB stampede the Rubes into panic selling, then buy stock etc. for pennies on the dollar.
"Martha? If JPMorgan is hording cash we should sell everything to have cash reserves too!"
Inflation follows the money supply. The worse it is the quicker the economy feels the effect. We are about to see the worst inflation of US currency in living memory.
Glenn Beck had an economist in February whj said that one can expect stocks to fall by up 90%.
In a normal world, your observation would be correct. The higher the inflation rate, based on past history, the higher the interest rate rise will be. All of this would go along with assumptions that people want to receive a ‘fair’ reward for the future events unfolding.
The Fed action in this environment, with Biden as President? I’m not so sure of past history reoccurring. The Fed said back in March that this would be a ‘momentary’ inflation period, and that we were in the best economic growth period of the past forty years (under Trump for four years). They kinda hinted then that the normal tools might not be used (leaving one to wonder what new trick they’d invent).
They haven’t invented a truck, I do not believe. They will continue to transfer our wealth into their pockets until we finally wise up.
They haven’t invented a trick, I do not believe. They will continue to transfer our wealth into their pockets until we finally wise up.
Interest rates haven’t gone up yet - that’s why. Why lock in loans in the LSD?
The reverse of the banknote features Victoria falls and a cape buffalo. Victoria Falls, or known by the locals as the Smoke that Thunders, was named in honor of Queen Victoria by David Livingstone in the mid-1800’s.
The cape buffalo is an African bovine that can reach a length of 10 feet, height of 5 feet and weigh almost a ton! The cape buffalo is infamous for attacking hunters and reports claim that they kill or injure more hunters than any other animal in Africa.
It's NESARA. And, it's imminent.
I wouldn’t rely upon Beck’s guest that much.
In the late 1960s....a decline of 29-percent arrived and lasted for about 18 months.
In the early 1970s....another decline occurred with 42-percent on the loss...going for about 16 months.
You can generally make a prediction that every twenty years, there will be three significant crash-and-reset periods. From March of last year...we dropped around 30-percent and by August...most of the drop had recovered.
Generally, the more tinkering that Presidents or the Fed attempt...the longer that the down-period lasts. As long as you don’t make radical taxation increases or add more regulation to industry...this should be a limited period of inflation.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.