Unsustainable money printing can continue to keep the USA economy in ICU, but inflation will skyrocket and the US$ will continue to depreciate. We have seen the rate of depreciation of the US$ just over the last year and this is going to continue. albeit even faster. Do not be blindsided by the stock market skyrocketing, as that is where all the money printing has really gone into.
The real gauge of the economy is in job creation, business expansion and manufacturing growth. Job creation is in the dead zone; businesses are not expanding, just resorting to round tripping investments to give a semblance of expansion, and are instead laying off staff and company bankruptcies are escalating and trade deficit soaring. Even the tourism industry is facing a severe testing time. When tourists avoiding visits, hotels, food and beverage entities and entertainment sectors suffer. What has added to the problem is the action of Trump's ICE goons that have created a negative image in the minds of visitors. They just avoid the USA, as the world is wide enough to provide an easy alternative for a holiday.
Anonymous
2 comments:
A 4% return on Treasury bonds is not enough to cover the loss in exchange by just holding them. Time for China to unload everything in its coffers. China has unloaded about half of its holdings, bought into gold and silver and stockpiling its oil in underground bunkers. China is prepared for what is coming.
Chinese regulators are now asking Chinese banks to sell off their US Treasury holdings and not to buy more.
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