Yes, follow the money, as they say.
There will always be winners and losers in business and the world economy.
*Investors Blog*
- Thread starter Warstud
- Start date
There will always be winners and losers in business and the world economy.
This is actually a great question and I think not one much of the public thinks about.
But lets break it down to the last question first "Are there any corps or businesses making a killin?"
Companies making a killing would be limited to those who are being subsidized by your tax dollars (example tax credits for EVs, Solar Panels and whatever else there is) But even then because of all this free taxpayer money, the costs for those businesses go higher but some profit really well from it still.
Ok, for the first question "Can anyone tell me where all the inflated money is going?"
This one to me is much more easy for a direct answer. The money was inflated by government, it didnt exist, meaning they started printing extra money with nothing to back it up but additional loans AKA The National Debt and distributed it to USA TAXPAYERS to spend. So the money is inflated right out of theFederal money factory because it was all being produced on loans that will be paid at sometime if ever.
Trillions of extra money printed out of thin air, added onto the debt load of taxpayers and then checks sent out to everyone over the last few years. People flush with cash, paid down debt and went on a spending spree, remember supply and demand? This drives up prices when everyone wants the same product. So all this extra money that people are spending and paying down debt with, just shifts the debt to another place in the economy but "the people" still owe the same amount of money, yet flush with cash from the new loan AKA National Debt.
Now, if that isnt bad enough, we had a world wide health event take place that closed down factories all over the world, creating supply shortages = again, remember supply and demand? If you produce a product, you will sell it at the highest price people will pay. Since these products were in short supply, your factory that is producing them is going to get the highest possible price for them.
So we have the Federal Government who took out massive loans to print more money and give it away for free to Taxpayers (even though its not free) Everyone flush with cash spending like crazy at a time where there already were product shortages. Ok, so now the taxpayers have spent that money but remember they also paid down debt? Well human beings are so tempted by debt that they now will take out debt to the levels they already had before all the Federal Cash was handed out during the health event. This will compound things even further.
Its more involved then this but I think this is a simple way to say it. Also lets not forget about the artificial low home mortgage rates!
Mortgage rates were lowered by government to the lowest in history because of the world health event. They did this by your government getting into the mortgage business artificially lowering interest rates buying bonds. QE1, QE2, QE3 or whatever other means they can.
Well guess what? Hello to the public, low interest rates = high home prices. Homes are not expensive, the payment is the same.
Either high interest rates = low home prices or low interest rate = high home prices.
I think its a disservice to those who bought their first home with an ultra low rate and high home price, I rather have the low home price and high interest rate, loans can be refinanced home purchase price can not.
Darn it, this is too long and no time to re read it for typos ect. ... Also cant be summed up in a forum and this is not a political statement in any way. Just my thoughts and wont debate the subject in this forum that is for investing but since its gone a little off track way before my post I thought I would chime in.
Last edited:
Good post alarmguy, and what you said isn't even the half of it.
Maybe we shoulda kept on the gold standard?
FedEx withdraws guidance for 2023. The stock is visiting the woodshed after hours.
https://www.cnbc.com/2022/09/15/fedex-fdx-earnings-q1-2023-miss-estimates.html
https://www.cnbc.com/2022/09/15/fedex-fdx-earnings-q1-2023-miss-estimates.html
I was just about to post this FedEx link, you beat me to it.
Another sign the economy is slowing down.
Notice how many companies are now revising their guidance and accelerating ‘cost reduction’ efforts…..
https://www.cnbc.com/2022/08/30/best-buy-bby-q2-2023-earnings.html
Another sign the economy is slowing down.
Notice how many companies are now revising their guidance and accelerating ‘cost reduction’ efforts…..
https://www.cnbc.com/2022/08/30/best-buy-bby-q2-2023-earnings.html
Last edited:
Down 16% A.H. Ouch
Inflated money just means devalued money. You now need more dollars for the same item because each dollar is now worth less. Inflated money is flowing to all the same places it's always flowed.
Amazon closing 44 fulfillment centers and cancelling or delaying 25 others.
https://www.cnbc.com/2022/09/14/map-of-amazon-warehouse-closures.html
https://www.cnbc.com/2022/09/14/map-of-amazon-warehouse-closures.html
If anyone would have a finger on the pulse of the global economy it would be him.
https://www.cnbc.com/2022/09/15/fed...e-economy-to-enter-a-worldwide-recession.html
I think after this interest rate bump, I'm going to wait a month for the new rate to matriculate into the T-bill and then start building a Treasury ladder.
I pulled about 2/3's of my money to the sidelines this year (VMFXX) and did surprisingly well with the run-up in natural gas prices. Late October I'm going to start buying two year Treasuries and by the end of the year, most of my money will be there along with the keepers that are in my equity portfolio.
I-bonds will continue to do well in the short-term as well. If you pay the IRS what you owe plus $5,000, you can get about $15,000 into an i-bond with a rate that will likely be north of 6%. Add an extra $10,000 to that total if you have an LLC and add an additional $25,000 if your married with a wife who has their own business.
I pulled about 2/3's of my money to the sidelines this year (VMFXX) and did surprisingly well with the run-up in natural gas prices. Late October I'm going to start buying two year Treasuries and by the end of the year, most of my money will be there along with the keepers that are in my equity portfolio.
I-bonds will continue to do well in the short-term as well. If you pay the IRS what you owe plus $5,000, you can get about $15,000 into an i-bond with a rate that will likely be north of 6%. Add an extra $10,000 to that total if you have an LLC and add an additional $25,000 if your married with a wife who has their own business.
Well, the rail strike aversion was a huge win for us. That woulda been a gut punch to commerce. Our economy is based on commerce.
^^^ Yes ^^^
I honestly do not know what to expect. I was thinking that maybe we might see a little softening to maybe .50 or do I say .25? To me, I personally would think it might be smart to soften up from the .75 to let the dust settle a little bit, they always seem to do too little to late and then overshoot things the other way. But they are supposed to be the experts, right?
All I know, I cant wait to hear.
Anyone listen on Pt?
Powell is a lawyer.
If this fed is gonna squelch inflation? the % rate needs to be a couple of points higher than real inflation.
If this fed is gonna squelch inflation? the % rate needs to be a couple of points higher than real inflation.
And this is the problem. Powell is chasing the inflation instead of getting on top of it. He needs to go Volcker.
amen to that
