patrick.net

I'm richer than I have ever been, and bitches have never wanted my junk more than ever. Go Trump and MAGA!

The FED has hit one thing right. If things happen slowly, nobody will notice. The FED has tightened, and i hear nobody mentioning/noticing it. All attention is on BTC and Trump. Inflation jawboning and rate rise is in the next 3 years. Not sure where stawks will go at this level of valuation. Bonds are going to have issues, and I am NOT sure how the US treasury will sell with even more deficit after TAX cut together with rate rise. My friend answer is war will happen so that the world will have no other stuff to buy other than treasuries. I am not sure because if war happens, why would anyone wants to lend money to enemies? I am 75% cash and 25% on commodities. I am okay to miss all the gain at this artificial level. I am in a bunker to defend the risk.

I'm prepping for disaster by paying off debt. Made some $ off cryptocurrency (I should have held onto it) and got rid of credit cards, car payments, etc. Now its just a mortgage and that will be gone in 2 years.

bob2356 says

What do you think the tax cut was enacted for? To kick the can down the road and pump up the economy going into the 2020 elections.

And what can would that be?

bob2356 says

Watch the tax cut money drive the equities and economy into froth hyperdrive. It's already started and the bill's not even signed

What's wrong with a strong economy and stocks? It's the goal of every government. Stop complaining.

I was debating with myself yesterday whether I should mention the Germany Steinhoff situation as another black swan. I think I will. This particular swan already went over the waterfall.

https://wolfstreet.com/2017/12/19/margin-debt-backed-by-steinhoff-shares-hits-bofa-citi-hsbc-goldman-bnp/

Peter P says

Even hyperinflation is possible

Have you considered that in the current economic climate, hyperinflation might be exactly the thing we need to escape the coming debt crisis? Bankers hate it, and interest rates will necessarily rise, but it seems to me that the last hyperinflation was the biggest giveaway to the middle classes of any in the 20th century.
When money loses 3/4 it’s value in ten years, a lot of debt vehicles lose their grip on the people.

I don't think we even need hyperinflation. Just half a decade of 7-10% inflation would be an amazing debt destroyer. It would also smack home prices down, since people buy the payment not to sale price.

Although they've had an unprecedented ride, I have a feeling banks feel entitled to permanently low inflation. Be nice to shake it up.

Inflation returning to normal would also confirm widespread growth for the many, as well.

just any guy says

I'm richer than I have ever been, and bitches have never wanted my junk more than ever. Go Trump and MAGA!

Wine Women and Wealth. What more could a man want?

Unless something catastrophic happens, I don't see hyperinfaltion. In the free trade model,w e export inflation. If you can buy a Lenovo laptop for 100 bucks, who is going to buy an American made one for 800 bucks?
if you can hire a chinese worker , no rules, work 7 days a week, stays in dorm attached to the fatcory and only goes home twice a year-why would you hire an American worker with all rules, regulations, unemployment, lawsuits etc etc. Now if we slap an import tax, yes, but otherwise how is an unskilled worker's salary increase in the current environment.

lostand confused says

but otherwise how is an unskilled worker's salary increase in the current environment.

Slave labor and technology are the two main reasons why the wages for unskilled labor lags. Only government laws like minimum wages can reverse that.

The hotter the girl, the more expensive. Basic economic function.

Haven't really prepped. Just more discerning about taking on debt, living within our means, investing in something with value not tied to fiat currency, and long terms plans to move to the South Pacific. The last I'd probably due regardless of financial collapse though.

Strategist says

bob2356 says

Watch the tax cut money drive the equities and economy into froth hyperdrive. It's already started and the bill's not even signed

What's wrong with a strong economy and stocks? It's the goal of every government. Stop complaining.

Worked great 2002-2006.

mell says

The hotter the girl, the more expensive. Basic economic function.

My wife’s hot and she contributes a nice income. Not sure if she’s expensive, but I’d definitely say she’s a bit of a unicorn. Most hot girls don’t get and education or if they do, they don’t study anything useful.

Quigley says

mell says

The hotter the girl, the more expensive. Basic economic function.

My wife’s hot and she contributes a nice income.

Then what's wrong with her? Why did she merry you?

Quigley says

it seems to me that the last hyperinflation was the biggest giveaway to the middle classes of any in the 20th century.
When money loses 3/4 it’s value in ten years, a lot of debt vehicles lose their grip on the people.

Yes, as long as salaries surge to keep pace, then fixed mortgage debt really falls in value with inflation.

I feel fairly well set up for inflation since stocks generally ride out inflation pretty well. Prices for goods rise, so corporate earnings rise, so stocks rise.

lostand confused says

if you can hire a chinese worker , no rules, work 7 days a week, stays in dorm attached to the fatcory and only goes home twice a year-why would you hire an American worker with all rules, regulations, unemployment, lawsuits etc etc.

This is why globalization is a disaster for ordinary working people.

Patrick says

This is why globalization is a disaster for ordinary working people.

But they are all globalists, just different flavors.

Quigley says

Have you considered that in the current economic climate, hyperinflation might be exactly the thing we need to escape the coming debt crisis?

Hyperinflation is usually caused by a complete loss of faith in the currency. It will be tough for everyone without productive real assets.

Peter P says

Patrick says

This is why globalization is a disaster for ordinary working people.

But they are all globalists, just different flavors.

What do you mean? That working people are also globalists because they benefit from cheap foreign consumer goods which destroy their own jobs?

Patrick says

What do you mean? That working people are also globalists because they benefit from cheap foreign consumer goods which destroy their own jobs?

Both candidates were globalists, just different kind.

That said, I am quite happy that Trump won.