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Governments are deficit spending constantly, even when there is no crisis, their debt which they call public debt is only rising and is clearly unpayable. Why are the Central Banks allowing this, to what end is this scheme?
Read Kitco news article.
Record inflation levels are coming with no growth. Interview with Steve Hanke.
Hi Freedom,
Because central banks are puppets and their master are their governments who use monetary policy manipulate the true effects of their political policy failures so as to stay in power and continue to do very nicely!
The pandemic has provided our present government with an unexpected opportunity to personally make huge amounts of money and also hide their lies to the ordinary people on Brexit etc.
!“The only way to do more was to delink ourselves from unbridled profiteering,” he said.
https://www.bollyinside.com/news/soros-and-gates-back-purchase-of-uk-diagnostic-technology-group
https://uk.finance.yahoo.com/news/bill-gates-reimburse-companies-covid-195622308.html
Thank you to Mr Bond!
https://www.kitco.com/news/2021-07-17/Record-inflation-levels-are-coming-with-no-growth-the-worst-of-all-worlds-Steve-Hanke.html
News Bites
Record inflation levels are coming with no growth, 'the worst of all worlds' - Steve Hanke
David Lin Saturday July 17, 2021 21:32
Kitco News
Share this article:
Inflation in the U.S. will climb to between 6% and 9% by year-end, said Steve Hanke, professor of Applied Economics.
Speaking to David Lin, anchor for Kitco News, Hanke, who has served on Ronald Reagan’s Council of Economic Advisors, said that the rapid growth of the money supply last year has “worked like a charm” in boosting the economy and in turn, fueling growth in asset prices.
Hanke’s comments come as headline inflation in June reached 5.4% year-on-year, the highest on record since 2008.
He noted that the rise in inflation in 2021 has been caused “100%” by the growth of the money supply.
“The main thing about inflation is that it is always and everywhere a monetary phenomenon. This is what Milton Friedman taught us long ago and the transmission mechanism goes from growth in the money supply to growth in asset prices to growth in economic activity to ultimately to increased inflation. That’s the transmission mechanism. It always works,” he said. “Right now, the rate of growth of the money supply has been about three times higher than the rate of growth should have been if the Fed would have wanted to reach its inflation target of 2%.”
Hanke added that between 6% and 9% inflation, the economy will experience the highest growth in consumer prices since the 1970s, an era that experienced an economic phenomenon of low growth and high inflation known as stagflation.
“We’d be clawing our way back into those stagflation years in the 1970s,” Hanke said.
Although stagflation is the situation we are likely headed towards, the economy currently is not that bad yet.
“[The 1970s] was terrible,” he said. “It was the worst of all possible worlds. You have a lot of inflation and jobs are scarce. That’s not what we’re seeing now, by the way. We’re seeing inflation in a booming economy. We’re not seeing the stagflation type of thing where the real economy is weak. The real economy is very strong and booming right now as we’re coming out of lockdown and things are getting on track.”
For more information on how the consumer price index (CPI) is calculated, watch the video above. Follow David Lin on Twitter: @davidlin_TV (https://twitter.com/davidlin_TV).
It's "Freedom Day" in the U.K., which just lifted the majority of its remaining coronavirus restrictions, but investors seem to be more nervous there, as well as across the globe. The rise of the rapidly spreading Delta variant is threatening to derail many efforts towards a full economic reopening as worsening outbreaks continue to cloud the once-promising outlook. U.S. stock index futures are also joining the global selloff after the major averages posted their first negative week in four: Dow -1.1%; S&P 500 -0.8%; Nasdaq -0.4%.
Mixed feelings: "If we don't do it now we've got to ask ourselves, when will we ever do it? This is the right moment, but we've got to do it cautiously," British Prime Minister Boris Johnson said in a statement. It's a continuing argument that's playing out worldwide. Some have warned that hospitalizations could rise substantially over the coming weeks, jeopardizing the progress made in containing the pandemic, while others have put more of a focus on personal responsibility, saying there were worse consequences for the economy, livelihoods and mental health.
Just weeks after they celebrated their "Freedom Days," the Netherlands and Israel reimposed COVID restrictions as Delta variant cases rose throughout the countries. Over in Australia, Sydney and Melbourne are tightening lockdowns, while more athletes are testing positive for COVID-19 upon arrival in Japan, challenging the Tokyo Olympics in a region that just declared a coronavirus state of emergency. In the U.S., more states are also reinstating restrictions that had been lifted since late April, including Arizona, California, Colorado, Florida, Louisiana, Michigan, New Mexico and Texas.
Go deeper: Delta isn't the only thing weighing on investors' minds. Inflation fears resurfaced on Friday after data from the University of Michigan showed that consumers believed prices would jump 4.8% over the next year, marking the steepest climb since August 2008. There's also worries about a peak in economic activity, tapering talk, the Q2 earnings season and whether the bullish sentiment in markets has reached a tipping point.
Anyone else smelling a "moment" here?
If gold can stay level or gain today, then the inverse relationship with risk and stocks may finally be returning - bitcoin starting to break down should drive it home that crypto was speculative bubble as well as pretty much everything else.
Its been bonkers how poorly gold has performed this year given what is happening to the money supply and with impact of covid variants across the world.
Gold is tough to read of course because of the incredible manipulation - I am, however, eyeing possible triangulation on Silver suggestive of a break to/wards $35 in September if that has anything to it :)
A few FinTwits have noted the bigger goldies holding up vs the bloodbath everywhere else - it would be about bleeding time of course ...
Let me update you on the news in Australia.-> Melbourne, Sydney Adelaide all locked down and lockedin. West Australia has locked nearly everyone out, and a lady who has covid in southern Queensland has reportedly fled to Northern Queensland so we can expect Queensland to be locked down and the lady locked up? Seven people have been fined after police broke up a Sydney office party where an attendee was found passed out (not from covid, although there are further investigations going on?) on the floor, as NSW recorded 78 new COVID-19 infections. The premier of NSW commented that thank goodness most people were doing the right thing? The Universities (4th largest earner) have lost their earning capacity as all International students are locked out, and 15,000 staff have been locked out permanently from their positions in various Universities, and probably more to come. Our politicians are steadily insulting our largest customer (lets hope the Iron Ore price does not go down!), and blaming them for hacking, when the E Europeans appear to have taken the gold medal, closely followed by Russia?
So never a dull moment in the southern colony.
On the positive side, the weather in Cairns is fine, wind is light, water visibility is at least 10 meters on the barrier reef, and a Pikes Riesling is the best one can get (after the dive?) into your glass, as one sails into the sunset.
P.S. I have been amused even more (compared to the politicians and medical experts-none of whom have worked in private businesses which they insist on locking up) by the events in the crypto space. Talk about a rooting tooting show, and flabbergastery. Michael Saylor has taken evangelism up another level or 5, despite having conflicts of interests in what he preaches to the peasants and what he owns, which would land in him in jail in Australia (without any Rum). Who needs Hollywood?
Only economists and politicians could argue that there wont be inflation and bubbles galore with all of the money printing the Central Banks have been doing, not to mention our mates in the "normal" banks...want to buy a plot of land?
Simply breathless, but then this is now recognised as symptom, and hence I could have to go into quarantine, so must catch my breath and keep my head down!
good luck, and good night from the southern colony
REMEMBER A Pikes Riesling a day keeps covid at bay
the gnome