â€œWe believe we are at the early stage of the biggest cobra effect in the history of economics,â€ McDonald wrote in a post on his popular Bear Traps Report blog. â€œAs the massive monetary and massive fiscal stimuli (over $15T globally) conjoin to save the economy from a deflationary depression, they will cause instead a hyperinflationary economic collapse.â€https://www.marketwatch.com/story/th...?mod=home-pageHe went on to say that if the government were to figure out that such a collapse is coming and decide to change the course of its policies, then a deflationary depression will follow â€” one â€œmuch more severeâ€ than if the powers-that-be hadnâ€™t intervened at all.
- look up crocodile pattern ... this image illustrates it all...
There are a few more .. but I'm not going to disrupt this thread.. .
and this one is more technical..
Buffet probably meant this chart when he said:
â€œI realized that technical analysis didn't work when I turned the chart upside down and didn't get a different answer.â€
Last edited by shri; 23-07-2020 at 07:46 AM.
Last edited by foxwendal; 05-09-2020 at 10:35 AM.
There is a reason economics has been called the dismal science.Original Post Deleted
For the tl:dr crowd . . . Three arguments to support possible post-COVID-19 inflation:
1. People have flush bank accounts due to nearly a year of quarantine and have lots of pent up demand.
2. Longer-term, globalization is retreating and the world's working-age population is shrinking. i.e. The days of China making cheap stuff for the rest of the world is coming to an end.
3. Politicians/policy makers will fuck things up.
Last edited by huja; 11-12-2020 at 07:13 AM.
Yeah they're also predicting a burst of increased productivity, which will push prices down.
So really hedging themselves!