Stagflation is the Name of the Game: The Dollar is Dust
REAL ESTATE NEWS (Los Angeles, CA) — Jawbone Jerome Powell today attempts to placate markets by raising interest rates. Unfortunately, Jerome’s half-hearted attempt at finally correcting radical fed monetary policy is too little too late. Inflation is already out of control, and cannot be fixed by increasing interest rates to 4, 5 or 6 percent. We are witnessing major changes, including the way we make, spend and save money. The U.S. Dollar is being replaced by blockchain cryptocurrencies. The laws of economics are fundamental in this analysis: Good money chases out bad. New money destroys old. Blockchain cryptocurrency annihilates the value of the US Dollar, which results in inflation. Radical fed policy and digital money printing results in inflation. Uncontrolled federal government spending results in inflation. Raising interest rates to 6% can put a slight dent in our runaway inflation, but cannot contain inflation that has such historic pressures pushing toward rapidly growing inflation.
We’re watching these changes play out in the form of stock market crashes that quickly end up at all-time highs, along with a real estate market crash that will also quickly end up at an all-time high. These are the effects of stagflation: economic stagnation combined with price inflation. It’s a one-two punch towards a terrible economy. That’s why the U.S. has the most pessimistic economic polls in many years.
As we mentioned recently, the billionaires and other astute investors are taking full advantage of the crashy stock market by picking up stocks on the cheap from the gut-punched dumb-money investors. With plenty of blood on the street, this fearful time is precisely the time to start picking up some good deals in the stock market in the form of high-quality stocks. For real estate, now is precisely the right time to pick up high-quality properties, while they are historically low-priced, in lockdown-depressed inner-city areas such as Downtown Los Angeles.
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