Somewhere along the line people got deluded into thinking inflation is a good thing.
However, I am here to tell you that Inflation=Oppression.
Rising prices help only those who already own the assets.
When it comes down to homes, food, rent, cars, gasoline, gadgets, gizmos, clothing, etc..
Do you accrue any benefit from inflation?
No. Inflation amounts to paying more for less.
In this upside-down warped reality of quantitative easing, ZIRP, NIRP, up is down and down is up.
The banks want inflation because in deflation the asset prices drop, profit margins fall.
Deflation is the mudslide that derails the elites gravy train.
All we have seen in our lifetimes is our purchasing power crumble as the necessities of survival inflate like a balloon floating ever further and further out of reach for everyday Americans...
I'm telling you that this balloon is the Hindenburg. It's filled with explosive gasses and It's time to light the match to blow this powder-keg into a new dimension.
In the new deflationary paradigm citizens will find themselves with Increasing Purchasing Power.
Asset prices will fall. Home prices, food, rent, clothing, basic necessities of life will once again become attainable.
You see, we are in a global depression and the natural cycle of free-markets has a cure for that ailment.
The medicine is called deflation. When people are poor and suffering, they cannot afford to pay ridiculous sums to live. Sooner or later, the sellers must match the buyers at a fair-market-price.
These bastardized interest rates have been working like a subsidy to artificially inflate asset prices. With no return on money investors have been forced into the far-reaches of the risk spectrum. Boosting junk bonds, piling into sketchy enterprise, overbuilding.
This is a recipe for disaster that will not end well...
Don't these people realize that prices go up and down?
Oil investors in shale fracking were living high on the hog when crude was trading above $100/barrel and now what do they have to show for their reckless greed but a rusted drill?
This is deflation. Deflation acts as a righteous sword to the bogged jungles of malinvestment.
All these condo/apartment developers. They are all over my city and this nation right now, exploiting the absurd rent prices (Rent is at All Time Highs) When Deflation flexes, it will take down these crooks the same as the oil patch.
This nation is overbuilt. It is a crime that the average person can no longer afford a home and is cast into a shoddy four-cornered room built of sand and paper walls..
What has happened to the American Dream? I'll tell you what happened. The greedy elite outsourced this nations prosperity with 'free-trade'
Never enough profits for those on top of the corporate ladder. Cheaper labor. Cut corners. False accounting. Reckless borrowing. These people rely on inflation as a crutch to bail them out.
Soon enough the deflation will hit and will call them on their malfeasant business practices.
Only the strongest business will survive...
Part of deflation is that money gets tighter. Say goodbye to the magical unicorns of silicon valley. In the deflationary paradigm investors reward solid, profitable business. The dreamers, the scams, they all get crushed.
Corporate Profits will fall as consumers demand more for their money.
We will not see these dizzying heights in markets again for quite some time when the plug gets pulled and Mr. Market corrects to fair value... Enjoy the spectacle. Buckle up for the ride. Take profits on your investments if you have them.
Traders have enjoyed an inflationary fiesta for decades but we are entering into a new paradigm none of us living have yet experienced in our lives...
Deflation has some pros and cons but rest assured it's these inflated markets and the fat-cat elite who will be hardest hit.
Deflation will likely do the rest of us some good...