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Why hard asset prices are going higher
Posted:
Wed Jun 25, 2025 3:13 pmby Lemon Thrower
Good read. Economy is slowing, inflation is down and going lower because Trump shut the southern border.
Powell is not only late, he is wrong. Inflation is not the issue, its deflation. In our credit based economy, banks go kaput when there is deflation so Powell will be printing like crazy (eventually).
https://www.zerohedge.com/markets/gold- ... -fed-panic
Re: Why hard asset prices are going higher
Posted:
Wed Jun 25, 2025 4:22 pmby Cu Penny Hoarder
Lemon Thrower wrote:Good read. Economy is slowing, inflation is down and going lower because Trump shut the southern border.
Powell is not only late, he is wrong. Inflation is not the issue, its deflation. In our credit based economy, banks go kaput when there is deflation so Powell will be printing like crazy (eventually).
https://www.zerohedge.com/markets/gold- ... -fed-panic
Why?... the US dollar is becoming worth less. i.e. worthless
Yes, Powell will print and print, which will make the USD even more worthless... same as Bernanke... same as Greenspan.
Re: Why hard asset prices are going higher
Posted:
Wed Jun 25, 2025 10:01 pmby JerrySpringer
Deflation will be a strain on debtors, won't it? Layman view is shrinking price means less revenue and shrinking margins of profit ---> job layoffs. Not the best time to get in debt? Inflation at least lets a company try to get ahead of it by raising prices but holding off wage increases, temporarily unless unemployment (like in 2009 ) means a company can offer less and have takers lined up for job openings.
Re: Why hard asset prices are going higher
Posted:
Wed Jul 02, 2025 5:23 amby Lemon Thrower
Yes, deflation strains those who owe money and inevitably leads to losses for those who lent the money. If the deflation is strong enough then those bank losses can cause a bank or banks to fail. So there are multiple rate cuts in store for the remainder of the year - not because Trump wants them - but because the banks want them. (The banks don't really want them - they make more money when rates are higher because the spread on what they charge for money and what money costs them is larger - but the rate cuts make banking more safe for all banks.)
Re: Why hard asset prices are going higher
Posted:
Wed Jul 02, 2025 4:30 pmby shinnosuke
Don't worry about the banks, LT. John Q. Taxpayer will gladly bail them out if the little darlings get in financial trouble again. The Titans of Wall Street just need a little help.
Our main problem is continuing to allow a non-federal entity to set economic policy. Who voted for Powell or any of his cronies?
I definitely see a rise in gold and silver prices along with a mighty jump in the asset which shall not be named before the end of the year.