Ann: December 2020 Quarterly Report, page-89

@reddirtdan

its quite obvious to me that the Investment Banks are pushing cryptos to pull retail money away from PMs

I said that would be their plan when they set up the chicago crypto derivative exchange in 2017

once they set that up the IBs got control of crypto pricing and can use cheap puts/calls with massive implied leverage to push cryptos wherever they want - same as they do in precious metals - and because its not a real marketplace its exceptionally easy to do

as for the rest - i dont think the democrats have any ignorance of what some republicans are pushing for. they just know the more they let republicans set the agenda the more it will cost the Dems long run.

In 2008 Repubs stopped Dems from doing a 2nd big stimulus more targetted at Main St after the initial $800billion to prop up the wall st banks and AIG.

Same as now - the republicans at the time once in opposition started claiming it was vital to worry about US debt position etc. despite not having given a fig about it when in control

Nowadays most commentary says the 2008 spending needed to be bigger - that it would have fast tracked the US recovery - and also meant less aggro from Main St

But it really doesnt matter what either US party does day to day - the US Debt is now +130% debt/gdp ratio = it can only get worse because its paying interest on its interest and there is zero political will to massively reduce government spending

(Republicans spent $US6.5Trillion in the year to last 30 September. So them talking about debt concerns is just absurd - US republicans only care about debt when they dont think they will get political good will from it being spent.)

Anyway -because of that the US cannot raise interest rates to combat inflation - because then its debt funding costs will balloon. I read that a 2% increase in US 10 yr would increase its annual current account deficit by $US900Billion

Thats for a government that was already spending ~$US1Trillion + more than it was 'making' a year in Trump's last year - before emergency measures like Cares act

But there is zero prospect of hyperinflation in US in the short term (1-3 years)

Hyperinflation is a term thrown about wildly by people who dont understand what it means - Hyperinflation is when avg price of consumption costs rises
+50% a month https://www.investopedia.com/terms/h/hyperinflation.asp

High inflation - 5-10-15% a year - thats a real possibility to occur in the US over the next few years.

There;s no chance of it because the USD is still global reserve currency - the economy is too internally broad and self sustaining - and its demographics are still pointing down

Hyperinflation typically only occurs when a currency collapses - then all the prices rise a lot as country imports a lot of inflation - generally happens to single commodity countries like Venezuela

The other times it occurs is massive debt explosions that collapse the country's economy - but while US debt is huge - its nowhere near big enough yet to collapse the economy

Japan runs at +300% debt/gdp - China similar.

But give it 10-15 years - then it becomes a much more real risk for the US. US cant go to their levels - it doesnt have the same level of savings

But 200% debt/gdp - the US could probably handle for a time