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To: DannyTN
Thanks for all the food for thought.

You're pointing out that commodities mostly tend to rise together, along with real estate and (in normal worlds) interest rates.

WHEN that happens we're in an inflationary cycle. What may curtail it, as you allude to, is inactivity in the economy. In Carter's time however, economic inactivity and inflation coincided - i.e. stagflation.

I'm betting that's where this is going, but the economy is so global and volatile now it's hard for anyone to get a handle on.

72 posted on 03/19/2021 10:21:28 PM PDT by AAABEST (NY/DC/LA media/political/military industrial complex DELENDA EST)
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To: AAABEST

Yes and stagflation is caused by monetary policy as opposed to inflation that is caused by capacity restraints.

I’m still trying to make practical sense of it all. The amount of money on the sidelines in M1 and M2 plus the current stimulus is a lot of money that could flow into the market and drive prices higher.

But if market psychology turns negative it can make all of that money just cease to exist quickly.

What to do? What every I do, I will probably try to hedge some.


73 posted on 03/20/2021 12:36:21 AM PDT by DannyTN
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