Mar 18, 2021
There’s nothing new in the market, but we’re seeing financial violence again. The public has never been more engaged in the market. Bob hasn’t seen anything like it since the 1960’s. There’s no numbers one can put on it, but Bob says it’s the great public participation. The difference between inflation in the financial aspects versus a rising CPI and cost of living. Bob’s classical definition of inflation, which is in an inordinate increase in credit, not prices. You’ll get them switching off periodically, such as the 1970’s. The reckless Fed and its buying of treasuries to keep rates down parallels that era. Newly created credited flows into the economy in different ways, often unpredictable. Bob isn’t predicting Weimar level inflation, runaway inflation this time. Bond markets are not facing extinction this time. It won’t happen with the reserve currency and main economy. We are at a cyclical peak for financial assets and commodities. Watch the gold silver ratio, if it goes up take note, we’ll be heading for a crisis. US Dollar pattern could lead to a rise, especially in light of history which favors the reserve currency. The greatest financial crisis in history is coming this fall.