Needing Redpill on economic situation

Trump's economy kicked in

Interest rates are a big part of it.

Will it lead to another recession? Probably. Interest rate hikes always do, the house of cards comes tumbling down when rates aren't artificially held at fractions of a percent.

A good indicator of a recession is a rise in oil prices always precedes it.

nobody fixed the previous economic crisis. instead, governments hid the problem by ''printing'' money and buying up debt that would never be paid back, they also made it cheaper to lend adding more debt that will never be paid back on the shit pile. the extra money has added extra money in the economy, but hardly anything new of value got created so instead real-world economy stuff got relatively more expensive food, housing, land etc. More expensive due to inflation, money becomes less valuable so the rest becomes more valuable. so there's bubbles everywhere now, on debt in real-world economy stuff, and also other economic constructions in which they bet on the future, the last one is a bubble you definitely don't want bursting, when it does all that ''money'' will try to escape to the real-world economy to escape it. anyhoo, printing more money is the only way they can solve the problem in the long run, you basically make money worthless so that previous unpayable debts become payable again. thus USA, EU, China and the rest of the world all do this with insane numbers, probably causing the biggest theft in the history of the world. The printed money mostly goes to the banks and at the same time life becomes a lot more expensive for anyone else. people with possessions are temporary well off as long their bubble doesn't break.

What trump is doing is good though, but you can wonder how much effect it has in the big picture.

t. brainlet

Rotating credit isn't 'printing money' its how economies and firms are able to expand. governments do it to for good reason as well. Very little is possible without using leverage. Please go read an economics text instead of listening to tin-foil shit on youtube,

The ECB prints 80 billion euros a month to buy up debts. Always the ''romantic'' germans.

retarded analysis hanz ...the "real" economy is being held up by central banks....the gdp is growing much slower then the debt level is...

Oh god Hanz you just keep digging deeper :)

Fug D:

Okay yeah private sector debt is very high right now but there is no reason to think many firms will default on it. It is manageable and there is too opportunity for firms to limit themselves by decreasing leverage. It is less dangerous now than it was before the last financial market collapse. The type of debt held is better risk managed, it isn't all speculative baskets of subprime mortgages or whatever people we hedging their retirements on in 2005.

Anyways, debt roll-over isn't 'printing money'. Inflation is very low.

>What triggered it so suddenly.
The market is forward looking. You never make money in the market until you take a profit. The market had been up up up under Trump and firms were looking to take profits under the new tax laws.

Zoom out

I feel like you know how bad it really is but you are trying to convince yourself its all ok....

HINT: the US is currently backing the reserve currency of the planet earth with about 8% gold reserve holdings...Why do you think your own country demanded the repatriation of all its gold being held in New York...WHY HANZ!!

I can put it this way, things are great right now, so there is more room to go down than to go up. That said it's impossible to time a business cycle. It might keep going for another 5 years before the market collapses, but it (probably) won't collapse in the next 12 months. the positive fundamentals outweigh the risky leverage at the moment

Honestly I really hope a recession or stock market collapse will happen because it's extremely expensive right now.

Currency isn't backed by gold. That stopped when globalization allowed say, China to sell plastic garbage, toxic dog food and receive gold backed currency. Literally trading trash for gold. Only deluded people think that is a good deal. These days governments keep gold around as a hedge against inflation and to control excessive commodities speculation. To shift around numbers on their balance sheet. They can sell high and buy low, manipulate prices. Why I think people are crazy for advocating gold for anything.

We're in the end stage of fiat currency. Read historically about the different nations that have tried fiat, how long it lasted, and what its final days looked like. France is particularly funny, Andrew Dickson White's book on Fiat Inflation in France is a classic.

One thing that differs between our situation and France's is that the peasantry actively cheered on the "quantitative easing" (money printing) after a certain point because they just wanted to lose their debts and thought they'd end up rich, too.

My point being, the house of cards is being held up by strings. They say inflation doesn't matter and those are just zeros, but... I think it's clear to see what the charade here is, the elite are just trying to redistribute what little wealth is still left all to them before crashing the market and reintroducing sound money. Lucky them, holding hundreds of tonnes of gold, will come out on top. The bitcoin dupes and FAANGgot holders maybe not so much.

Trump is the actor to keep the whole thing together.

Attached: Cranach_the_Younger_Barbara_Radziwiłł.jpg (1124x1324, 1.13M)

Inflation is healthy. It encourages investment and consumer spending. The wealthy dislike it because it forces them to manage their money and accept risk instead of parking it in perfectly safe assets. They hate that they can lose wealth because they park it under their mattress. Destructive inflation (hyperinflation) only happens in shithole countries with excessive public debt held in denominations of shitty local currencies.

Gold mutated into a volatile speculative vehicle. It is not a good store of value anymore.

Every central bank on earth hordes TONS of gold in giant vaults underground guarded by men with machine guns........"as a hedge against inflation"

Oh my sweet sweet Hanz now you have really outdone yourself :)

Attached: 170228063341-stewart-still-large-tease.jpg (460x259, 31K)

you are right the trigger was not the trade war talk that was weeks later. the correction happend becasue in late january you had better then expected economic news. low unemployment higher wages good forecast on the gdp. that is ofc good for the stock market aswell BUT at some point if the economy runs so well the fed needs to make corrections to the intrest rates and thats whats going to happen now. the stock market doesnt like that at all. it means lower profits for them. usually mainstreet and wall street are running sync but on this one not. for now the rule is if the economy runs even better then predicted stocks will go down untill the fed actually inacts their plans. then we might see a more calm market again.

>Gold mutated into a volatile speculative vehicle. It is not a good store of value anymore.

and the hits keep coming.....

Attached: 1484203013612.jpg (400x400, 21K)

I'm not saying the world of easy credit isn't, well, a modern one. I'm just saying that it could be all a bit less nefarious.

Hyperinflation would happen in any country printing massive amounts of its currency if they weren't giving massive foreign aid and relying on trade deals.

I think foreign aid is just advertising your currency at this point.

been coming a long time. last 10 years since 2008 have been great and smooth.

there will be a bigger crash the next 20 years at the latest when the bubbles really pop. but i don't think this it or the start of it. could be though!

Inflation is never as low as they claim

>inflation
>no chance
>to increase
>finance

Citation needed you nigger.
You're making some fucking far fetched conclusions

Attached: 1479257200402.jpg (516x485, 25K)

The trade war stuff is just smoke and mirrors. The real reason we are going down is because the Fed is letting the gov bonds it holds mature without renewing them. When this happens the money disappears from the financial system because it was imaginary money in the first place.

This rolling off started at the end of last year and is increasing. Currently $30 billion disappears a month in this way, increasing to $50 billion per month by Oct 2018. The only reasons markets are so high to begin with is because this imaginary money was pumped into them to begin with. As this money drains off, what else did we expect to happen? Everything else you see in the news is just noise.

There was a slight bouce earlier this month because the US gov got a lot of tax receipts in which they used to clear down debt. This money went back to traders who bought shares, etc. But this is over now. This bond roll off is on autopilot now so unless they change course, the markets will only go down.

Remember these timeless words: DON'T FIGHT THE FED

Just spam Jow Forums with happening threads with attached pictures of a bearish dow and the dow will start surging again.
happens every time