Inflation.......... ?
- By Gary/CO
- The Bear Pit
- 3714 Replies
Nothing I've seen suggests that "they" want us to have high savings. AFAIK, since we are (or were) a consumer based economy, they want us to consume (spend like there's no tomorrow).Do they want us to have a high savings level? Will our stock evaluations change if instead of only a few people being smart with their money, the entire country penny pinches and puts their money into investments? Will next quarter's er beat expectations if we all did that?
Stocks go up under hyperinflation. Historical precedents include Weimar, Zimbabwe and Venezuela. However, share holders don't have liquidity and share prices don't keep pace with inflation either. Modernly you have frozen assets you can't touch (if you get to keep them at all under the Uniform Commerical Code).
Suggest no one blindly believes the figures produced by the government. Last quarter was "up" because of massive government hiring, free spending by the same (which means creating new dollars which result in more inflation) and outright lies by the BLS and administration.
I'm not your financial adviser nor do I pretend to be one in real life. I'm just an old guy who is unfettered by the formalities of an economics education but who reads a lot of books on monetary history. Ferguson's When Money Dies is a good read.