Consumer Price Inflation VS Asset Price Inflation
Confusing but very important
(Listen to audio version of me reading👆)
One of the most confusing aspects of inflation is where it is coming from.
There are two different main types of inflation that we must differentiate though as well.
Asset price inflation is when stocks, gold, bitcoin, silver, housing is all going up in nominal value.
Consumer price inflation is the everyday goods and services you are buying at the store like groceries.
The 10 years following the Great Financial Crisis we mainly had asset price inflation.
The last 12-18 months we have now experienced consumer price inflation because of stimmie payments and exorbitant unemployment and PPP payments.
I believe, US policy moving forward will most likely have to be inflationary for both asset prices (upward) and consumer prices (upward.)
Where the last 6 months we had asset price reduction but consumer price increases.
The period from 2008-2020 largely saw asset price increases but consumers prices stayed steadier.
When you have stimulus payments and transfer payments going to the people that’s generally going to increase consumer prices.
When you have the FED buying bonds, MBS, or stocks…ECB buying “unlimited assets” in the background but claiming to want to fight inflation (just look at the 10 year treasury the last 3 months) purchases that generally flows to the banking sector and increases asset prices and speculation in the market.
The Fed wants to create the “wealth effect” before the election (because we are such a financialized economy) and make people feel good.
Long term we will continue to have higher inflation and prices will continue to rise.
Supply chain disruptions along with all the transfer payments directly to the people lead to less supply and more demand meaning = way higher prices.
The goal of Marxism is the abolishment of the middle class. Make no mistake.
We have talked about who the elites study and worship. They want two classes. The 1% and everyone else.
They are squeezing the middle class like the world depends on it.
We wouldn’t have oil leases and plants being shut down if we really wanted abundance and prosperity for all.
We even have Europe reclassifying nuclear to make it “green.”
When your economy looks and sounds like a clown car, it is run by clowns in a clown car.
Elections have consequences all over the world.
Your freedoms, your family, your wealth, and your future all lie in the ability of people to do some homework and see where their leaders are taking them.
The path is clear…famine, energy shortages, supply chains breaking, currency manipulations, etc..
All these plans have been tried before. They all end very badly.
Let’s learn from our mistakes and become resilient and independent so as to not need the system and not need politicians to give us things by selling our souls.
Stay strong,
Brandon