Thread by @srinicaps

The massive reset of the middle class in 2020 after #COVIDー19

#inflation #deflation #stagflation
#usfed #euro #dollars

Western countries are dealing with this crisis by increasing debts, increasing social spending and hence, ensuring the destruction of their currencies

and their bond markets and impoverishing the citizens along the way.
The destruction of the middle class allows governments to enact all sorts of dangerous policies because the middle class is really what rises up.

However, in other countries, mainly in Asia, Eastern Europe, and even Russia, they’re not handling this in the same fashion.
Many of these countries don’t even have social spending programs to the extent that the West does.

Hence, there isn’t a belief by the citizens that the government can or should look after them.
I think it’s the most dangerous period of time that we’ve ever seen, not just for your capital but also for individual freedom.

In terms of what it means for capital, we’re going to have extraordinary shortages.
Right now, people are very focused on a deflationary impact because there is no jobs , businesses are going bust. There’s this credit contraction.

That’s being met with a lot of fiscal and monetary stimulus. I don’t discount the fact that people losing their jobs has a disinflationary impact. What is being missed is the extraordinary shutting down of supply.

We’re at the cusp of seeing the same sort of thing. Already, the US just had the highest rise in food prices in 50 years and people are still not paying attention to it. This is going to become a massive problem.

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#chrismacintosh

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