Depression in the USA - Deflation verus Inflation

[Aaron]

Inflation is winning hands down in America according to this guy.

https://www.zerohedge.com/news/2019-...g-asset-prices
It seems obvious and I guess it will never change unless people think it is unfair as I do. If Trump, was a protest vote by working class middle America I think they might have picked the wrong guy, although they seem more concerned with immigration rather than a system that is increasing wealth inequality.

[Aaron]

Central Bank success story price rises thanks to minimum wage increases. Although wage inflation bad, asset price inflation good seems to be the general consensus of the central banks and political commentators.

They also tend to have a poor view of MMT and a good view of QE although no one has been able to explain to me what the fundamental difference between these two acronyms is as at it's core it is a belief that money printing is limitless and we should do more to make the world a better place. F**king morons on the left and the right as far as I can tell.

https://www.msn.com/en-nz/money/news...cid=spartanntp
Petrol on the way up but that is due to political turmoil.


My 2.8% on term deposit is not looking very good.

[Aaron]

If this guy and Janet Yellen are correct waiting for the next downturn is a bad strategy.
https://www.cnbc.com/2019/04/30/fed-...tiya-says.html

My strategy keeps getting worse and worse. Yet each year is one more year closer to my imaginary investing opportunity of a life time. My eventual capitulation will be the bell at the top.

[winner69]

If this guy and Janet Yellen are correct waiting for the next downturn is a bad strategy.
https://www.cnbc.com/2019/04/30/fed-...tiya-says.html

My strategy keeps getting worse and worse. Yet each year is one more year closer to my imaginary investing opportunity of a life time. My eventual capitulation will be the bell at the top.

It’ll never come Aaron

The govt/Fed manipulation is taking us away from capitalism to socialism — socialism for the 1%

Some might even call it fascism - like in the US Govt is supreme, all-encompasing, & runs the economy (market manipulation) / Country must grow w/implied goal to rule the world (US empire) / Questioning the govt is not tolerated

[Aaron]

Gotta stop reading the news when I should be working. I would be much better off financially but I can't let this pass without my unscientific theory regarding rising rental prices.

https://www.msn.com/en-nz/money/home...cid=spartanntp
This turkey blames the govt. Replacing letting fees with rent increases and requiring insulation of houses. Heat pumps seem excessive to me and he is right it will be playing a part.

I suspect "Investors" are buying the rentals for such high prices and low yields the only way to justify this decision is to constantly push up rents. Admittedly if they were pushing too fast renters would find an alternative (like staying with Mum & Dad). I think you might also find maintenance on property will get skimped on as the cashflow will hardly cover a paint job every few years. Also immigration is near highs so unless the immigrants are sleeping on the street they will be pushing up demand. No fact finding done, just a stab in the dark. The inflation cycle continues and ramps up when wages need to keep up with asset values and rents. Job well done by the NZ reserve bank.

Here is another guess the Reserve Bank of NZ has a mandate through targeted inflation to push up prices every f**king year so rising prices should not come as a surprise to anyone. It is just that the biggest rises have been in the property(house price) market and rents are tied to this.