Comment: I can't believe I have to

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I can't believe I have to

I can't believe I have to play the optimist again. It's so against my nature. But you take pessimism to a new level.

You assume that things will stay as they are, but that is likely only when there is stability and the financial/monetary world is far from stable. The FED has blown out their balance sheet to a size not imagined possible just a few years ago. As a result, we have highly inflated asset prices.

Bonds and practically all financial assets are bubbleiicious. House prices are inflating, again. While we don't have much CPI inflation (and thus little wage inflation) we have a very unstable situation where the rich (those with financial assets) are getting richer while the poor schleps without are getting poorer. That's politically unstable.

So we have both bubbles in financial markers AND rising political instability.

I not going to pretend to know what is going to happen, but if/when the bubbles burst there are gonna be some angry folk looking for answers and IF they come to understand that the source of the instability is the centrally planned monetary system, there WILL be changes. Not that the FED will be abolished, but it may be limited in some meaningful ways.

Alternatively, if the wealth disparity continues much longer we very well could see populist revolt, which too could result in meaningful changes to the monetary system.

While I can't predict the time, cause or manner of the changes, I do think it's more likely that we will see some sort of changes to the monetary system before too long. I just hope the change is in the right direction.

Never trouble trouble til trouble troubles you. Fortune Cookie