Just wondering what folks think will happen given all the money printing in the world
We read about the trillions in the USA media, but it seems the whole world is on a money printing binge
I doubt if trillion really means anything to most people, it's just a word people think about but have no real appreciation for, or how much a trillion euros, dollar, loonies really amounts to. How many trillions have been printed world wide?? A lot and more than I can grasp would be my answer
So: Given the money printed, instead of any one currency facing disaster/inflation all by itself, what if the entire world currencies inflate together, more or less,
I wonder how much longer the wealth divide can last before those left behind start marching in the street
Would the logical conclusion be that socialist policies become the norm and everybody gets free stuff, Do we have inflation. I think the best example of inflation is stk values. Will commodity prices inflate?? Will our corn be worth an extra 2.00/ bu but machinery cost an equal amount more??
Just to use an example on our farm. 10 yrs ago we bought a combine brand new for 220,000. Today our trade in is worth 150,000 but a new combine costs 550,000. 10 yrs ago I could have bought a farm for 500,000, in fact I still kick myself I did not buy when the asking price of a farm adjacent to us was 495,000. That is a 10 yrs time span, but corn has gone from 3.50/bu to 6.00 . All prices in CAD. So now we run a multi million farm operation on almost the same acreage. Is that not a rather hefty inflation, in just 10 yrs.
I am just trying to add up money printing and a leftist agenda, to try and figure out what the next 4 yrs will look like. No doubt a lot of money was printed. Will the left get their hands on that money and then what?? Will the left tax our capital gains. What about unrealized capital gains as the left wants free stuff. Will the left print or take from those who have wealth.
I know it is impossible to guess but the left really scares me. Perhaps because I have some thing to lose and many on the left have not so much to lose
Wayne,
The massive increase in the money supply in the US WILL cause inflation.
It seems almost impossible for that not to be the case. If we didn't have the COVID vaccine and COVID continued thru 2021, then I would not believe that so much.
Interest rates will also go way up.
The falling DX to new lows is part of this.
When interest rates go higher on the stratospheric national debt it seems like we will finally realize..............OH, OH, now we can't even pay the interest on the debt and it will be a crushing burden to our economy.
The fact that we are supposed to cut back on cheap, abundant, reliable and efficient fossil fuels, the life blood of our economy is only going to make things more challenging.
But we will not cut back because it will be impossible without collapsing the economy.
Instead, we will pass massive CO2/fossil fuel taxes on gasoline, natural gas and electricity so that government can get their hands on more of our money.
These are regressive taxes, sadly.
But the higher income people were get dinged with some huge tax increases too. If the R's lose the Senate, the capital gains tax could go much higher too.
Inflation here we come December 10, 2020
Started by metmike - Dec. 10, 2020, 5:12 p.m
just because we increase money supply this year, does not mean we will get big inflation this year. but... yes, sooner or later, the fiat will hit the fan.
and... it will get worse and worse in the future.
as economies stagnate, central banks will go to more radical extremes with QE infinity, and printing money like mad to try to keep the game going.
this is why i predict we will look like argentina by 2070...
On the consumer front, inflation is already being experienced. What used to be a $2 hamburger, is now a $5 hamburger. 50cents for a roll of toilet paper, is now a $1. Health insurance, which used to be affordable, is now 2 1/2 times more expensive, thanks to the "affordable care act". More like the unaffordable care act.
The draw of "free stuff", has won. And the burden is now placed on the shoulders of the productive. So why should the productive continue? After all, you can get "free stuff" from the government.
And ,Mark B, comparing 6 months ago:
A $3- 2x4x8 is now $6-
An $18- 4x8 sheet 1/2" CDX plywood is now $32-.
This is most likely a result of a combo of the printed money and a renegotiation of NAFTA.
It was as likely to happen as is water to continue to run downhill.
I'm hoping the NAFTA effect will ease over time.
John