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Old 02-19-2019, 04:10 PM
Danny B Danny B is offline
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Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,488
Squeezing the working class shrinks real markets

The supply of gold only grows by about 2% a year.
The supply of many commodities grows relative to demand. But, commodities must be consumed to supply future demand. Housing is an area where the upper loop of money renters meets the lower loop of people who need housing. QE has distorted this by creating a demand for housing by people who don't plan to actually live in these houses. The houses aren't actually "consumed".
"the soaring home prices in major Chinese cities isn’t an accident. It’s the product of deliberate local government land policies that favor rich landlords over the average citizen."
Developers are building “ghost cities—“ vast tracts of apartment high—rises and malls that remain largely vacant because the Chinese worker can’t afford them.”

Vacant apartments belong to wealthy landlords who expect to sell them one day at higher prices."
"Meanwhile, holding apartments off the market fuels a huge housing shortage, which pushes the prices for “second-hand” houses ever higher. Shanghai’s Second-Hand House Price Index, for example, has soared from under 1000 in 2003 to around 4000 in 2017."
"Japan has already faced these problems, and it’s counting three lost decades"
https://www.forbes.com/sites/panosmo.../#727742f8ecfc
The Chinese population is rapidly shrinking.
So, the Chinese (et al) money renters have killed demand for housing at the same time that they plan to sell later at a higher price to a presumably growing market.

Here is a long article on MMT and inflation. It claims that the CB will have to create tons of money to support MMT AND tons of money to support the demands of the banks. This will supposedly destroy currencies. I suppose that this is true. So, SCREW the banks and just print for the producing economy.
https://www.goldmoney.com/research/g...-credit-crisis

Armstrong writes about the runup to the 2020 election.
" It appears that all this political obstruction and constant hatred being poured out by the press against Trump will fuel less intelligent people to see him as the Devil incarnate who must be stopped at all costs. This is not going to end nicely and the politics have crossed the line becoming more hate speech with deadly consequences. Neither side will accept the result."
I don't completely agree with this. I know somebody who is the senior IT developer at a beltway firm. He dismisses EVERYTHING that HRC has done as just being an irrelevant fable. less intelligent
" Unfortunately, our computer is forecast a sharp rise in violence in 2020."
https://www.armstrongeconomics.com/i...ical-violence/
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