Stagflation?!?  Hands Down Or Hands Up? (January 14, 2019)

. . .

K          “The way I see the economy unfolding and unfurling in the near future, everything in or on your hands right now (stocks, bonds, lands, rides, gloves, etc.) will drop precipitously in price and everything you need to get your hands on to live (grub, aqua, tent, bike, threads, etc.) will rise staggeringly in price . . . and in value.”

J          “The old ‘lose-lose’ situation.  So many people are living a hand-to-mouth existence without much in or at or on hand to use or to lose and not much in their pockets to hand over for daily necessities.”

K          “One’s assets will halve, one’s expenses will at least double.”

. . . 

K          “For those who rode the rise, the taxes that were assessed on the assets as they rose in price will not be rebated when the assets retreat in price.”

J          “And as the assets rose in price but not in real economic value, the ‘wealth effect’ induced and seduced the owners of the assets to spend more and to incur more debt because they thought they were effectively wealthier.  Those spent monies are gone and those debts are still here and naggingly awaiting discharge.”

. . .

[See the e-commentary at “The Fed: Deal with ‘Stag’; Deal with ‘Flation’? August 7, 2006)”, “Stagflation And The Fed (September 17, 2007)”and “Going Forward With The ‘Reverse Stock Split’ (February 5, 2018)” proposing to double or even triple or even quadruple the Dow overnight just for fun.]

Bumper stickers of the week:

Hard come, easy go

stocks/2 + bonds/2 + lands/2 + rides/2 + gloves/2 + etc./2 = Net Worth;  

grub x 2 + aqua x 2 + tent x 2 + bike x 2 + threads x 2 + etc. x 2 = Recurring Expenses

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