Thread by @LibertyBlitz

1/ Quick thread on my thoughts about inflation, over the last ten years, and also over the next 5-10.

2/ A decade ago, when the Fed embarked on its QE experiment to further enrich plutocrats, many of us (myself included) lazily assumed that all the money printing would cause a lot of widespread inflation by now, which would ultimately stop the insanity in its tracks.

3/ Personally, I was a little late asking the key question which ended up making all the difference. In whose hands would all the printed money end up, and what would this mean for inflation? Turns out the money ended up in the hands of already very rich, older people.

4/ This is key because super rich boomers who get more money thanks to the Fed's plutocratic polices don't go out and purchase 5x more avocados or gasoline. No, they do what they've habitually done their whole lives. They buy financial assets (stocks and bonds) and real estate.

5/ To narrow it down even further, it wasn't just very rich boomers, it was very rich boomer financial types. They love stocks, bonds and real estate even more than the average boomer. So they went nuts.

6/ Remember how Blackstone immediately ran out and bought all those foreclosed homed just to rent them back to "main street" suckers who got kicked out and Obama left hanging. I wrote about it way back in January 2013:
libertyblitzkrieg.com/2013/01/09/ame…

7/ So you got huge inflation over the last 10 years, it just showed up mainly in the assets financial plutocrats like - financial assets and real estate. This is also why high real estate got particularly stupid and why I think the super high end globally could crash 70-80%.

8/ The next round of money printing, and particularly fiscal stimulus, will be very different. This is due to the altered social dynamics in which populism is, well, popular. You'll get demands for more money to healthcare, education, infrastructure, etc.

9/ Everyone will ask, we have unlimited money for the military and to bailout financial criminals, why not for education and healthcare? It's already being asked and it's entirely fair to ask. Problem is, we probably won't reduce empire, but just ramp up everything to the moon.

10/ Bottom line. Four decades of a U.S. treasury bull market (which I think is basically over), QE having a precedent for bailing out crooks, and growing populism will equal mega spending in the next 5-10 years. This is when the traditional inflation shows up.

11/ But we won't just go from here to there. Likely have a deflationary scare first where it all crashes and bonds get bid again, and this sets the stage further since people will just say there's no chance of inflation in this environment. That's the seeds of the big stagflation

12/ That's my 5-10 year view on inflation. I think the first part of the next decade will be like the 1970s on steroids. I don't even think it matters who's President. Social mood will demand the spending and it will happen.

Done.

13/ Oh, and if you like this stuff, feel free to toss me a donation. I don't charge for any content, but it's nice to see some voluntary appreciation.
libertyblitzkrieg.com/support-libert…