How Politicians Will Try To “Fix” Inflation with 3 Dangerous Policies
International Man: The US government has printed more money recently than it has in its nearly 250-year existence.
It’s the biggest monetary explosion that has ever occurred in the US, and it shows no sign of slowing down.
Retail prices are already starting to soar.
Where is this all headed? Is inflation out of control?
Doug Casey: It doesn’t look terribly out of control yet on a retail level. A Big Mac is generally under $5, and gas is around $3. The tens of millions of Americans earning $10–15 an hour can still scrape by after taking in a roommate to cover rent at say $1000 a month—especially since millions of them are still stiffing their landlords with rent and mortgage “forbearance.” But as that goes away and a radical wave of inflation washes over the country, a lot of them will wind up on the street.
The US monetary and economic situation is going to get insane, with the Fed monetizing $120 billion of debt every month. And the worse it gets, the more dollars the Fed is going to print in a vain attempt to hold the system together. It’s going to throw people who are just holding on off-balance.
So far, the vast majority of the trillions of dollars that the US government/Fed has created have gone into the financial markets. It’s boomed stock, bond, and property prices, making rich people even richer. The situation is still under control.
But it’s going to start filtering down to a retail level.
Here’s an example I encountered just today: As a lifelong car guy, I follow the prices of exotic cars. I saw a 1968 Porsche 911R soon to be auctioned—a low mintage car, but nothing exceptional in my opinion. Just a lightweight 911 with only a 220-horsepower engine. It’s estimated to trade hands for $5.5 million. That’s insane.
There’s been a growing bubble in exotic cars for years, but now it’s cresting. The funny part is that the listing said, “Maybe it’s time for you to take your winnings from GameStop and buy this Porsche.” I don’t know if the writer was being sarcastic or serious, but his words pretty well frame today’s mood.
It’s quite surreal. I’ll wager, however, that within 10 years, there will be hundreds of exotics, now being bought as instant collectibles, that will be found in barns with flat tires, dead batteries, and birds roosting under the hood. Their owners will have lost both their money and their interest in collecting. Nobody will want to be seen driving them for fear of being outed as a rich guy—which isn’t good during a depression. The same thing happened to Cords, V-16 Cadillacs, and Duesenbergs during the last depression
Here’s the bottom line… I think you can plan your life around monetary chaos over t
Article from LewRockwell