RE: Weak Economy, Weak Hands, and a Weak Dollar … (Death of the Dollar–18) with Link to Full Story
Dear @majes.tytyty
Everything WEAK :)
I do understand that printing money sometimes is necessary - simply because lack of liquidity can be more devastating than losing $$$ value / inflation.
However what bothers me is the fact, that those printed FIAT are not ending up in 'real economy' and instead they are directed to 'financial economy'. This is terrible way of re-distributing money.
QE and REPO will bring loads of pain in the nearest future. Stock markets should be fine the the time being, however it seem to be obvious that part of those money will also end up in different assets. Property and land will be one of them.
It's easy to imagine situation, where inflation is increasing, economy is slowing down, factories and companies importing parts from China and retailers selling chinese products will suffer. And yet stock market prices and property prices will continue it's way up.
If properties and rentals would continue getting more expensive (demand would come from that wealth / FIAT printend) then it will affect everyone. Cost of running buiness will increase, cost of living will increase. How to counter it? I have no clue.
Difficult times ahead.
Yours, Piotr
Your point about where the newly printed money ends up is 100% accurate. The money remains in the "financial" realm, where it's given to the elite / oligarchs.
None of that new money ends up in the real economy, the economy of production and retail and so on. The wealth gap continues to grow, and that spells doom for all ... for the economy of the elites and the economy of the middle class.
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Dear @majes.tytyty
In my opinion we're witnessing two important things:
Those without any assets and relying stricly on FIAT may have a hard time in upcoming future.
Cheers
Piotr
Yep, precisely. A massive wealth transfer is underway, and it will lead to a more massive wealth gap. Essentially, the middle class will vanish (as you pointed out).
And a society / economy without a healthy and vibrant middle class is neither healthy nor vibrant. It's doomed.
Let's hope we can survive the coming collapse and help our families, friends, and neighbours as best we can. Maybe we can do so thru "Hopeful Projects" of various types.
Cheers.