Later
Deport Jim Rogers to his beloved China
Perplexing.
Maybe we need to measure money momentum ($in circ X money velocity)or money kinetic energy($in circ X money velocity^2)?
The average price of a new car in 1972 was $4,500. Now it's $ 30,748. In 1972 a loaf of bread went for Quarter. Now it's $2.49.
The currency is collapsing. The Fed; has us in a liquidity trap. It cannot stop floating the stock market, it cannot get the banks off life support, it cannot stop QE and it cannot raise interest rates.
The only way out is default or war - probably one then the other.
At first I dismissed this article. Common snese economics suggests that pumping manufactured money into an economy causes inflation (whether by printing or lending). You can’t have inflation and deflation at the same time can you? Maybe so....
I have to admit I have been curious about how prices continue to climb in comodities (inflation and currency value drop?) while the typically appreciating asset values are stagnant or dropping. With interest rates low, money has no value in savings Vs. inflation. Still, there is cash on hand for investments in the stock market (because it’s better than savings?). I don’t understand the confidence in future returns for the investment market.
The stock market reminds me of 1999. It’s bullish nature does not reflect future economic expectation. That is, corporate performance expectations do not have a consistent or common thread that would justify universal expecations of higher investment returns (Are people “storing” money in the market?).
This article may suggest that runnaway inflation is already occuring and is (oddly and simultaneously) countering deflation. Maybe an economist can help here. Shouldn’t these two curves be in line with each other? Is this even possible? How do they come back together and what are the consequence? It can’t be good.
Other countries are starting to trade in currencies other than the dollar. Once the dollar is not the only game in town, everything can change.
There is still vitrualy no use of natural gas for transportation. I want to hear about industries that have switched to natural gas...so far it is slow going. Hopefully homeowners are switching to natural gas and giving up oil (heat) and electric heat and cooking as much as they can. No natural gas lines run to my house. I have to use electric unless I put in a propane tank
bfl
The author is saying there is almost no place to invest your money.
Deflation is over. Housing bottomed and liquidity is increasing.
Jim Rogers misses yet another call.