https://twitter.com/Nakadai_mon/status/1442004110534922248
Select Quotes
- “Let’s start with the Fed and inequality. I don’t think there is any greater engine of inequality than the Federal Reserve Bank of the United States the last 11 years.”
- “Hearing the chairman [Jerome Powell] talk about visiting homeless shelters is very, very rich indeed.”
- “Why are we making money? Because this guy is printing like there is no tomorrow.”
- “The kids in Harlem are not benefitting from money printing but Stan Druckenmiller is.”
- “For the life of me I can’t figure out why the left is so excited by the money printing, when all the data says that people that benefit from money printing are rich people that know how to navigate the markets.”
- The odds on bet is we are going to have inflation, and inflation is going to hurt poor people a lot more than rich people.”
- How does this thing end? To me, the asset bubble which he is blowing up to unbelievable proportions before the inflation ever really manifests itself.“
- “We’ve never had a deflationary bust because inflation was too close to zero or 1.5 instead of 2. We’ve had them because we’ve had these tremendous asset bubbles. There is no group that will get hurt more than the poor. They will be first in line to be screwed. Trust me.”
That’s a more colorful explanation for the one I have presented for years.
Inflation benefits those with first access to money: The banks, the already wealthy, and the connected political class.
Point number 7 is the “transitory” case as discussed here:
MishTalk TV Episode #1: Is Inflation Transitory or Not?
The bursting of bubbles is not inflationary.
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Mish
The losers are those who spend it.
So the real losers are those who do not invest in assets.
You are competing against organizations for whom price and
ROI are not the principle concern. Their aim is to use paper assets to buy real
assets since they feel that paper assets are fictitious assets.
.They can barrow at negative rates thanks to the Central Banks which you cannot
do. In former times gold would have been attractive but now the only liquid
market that can absorb these massive sums of electronic money is real estate
worldwide. The US bond market has been tapped out and rates are negative.
Currently the money has been going into real estate because that is the deepest
market in the world. Either you play the speculation or you sit out this one.
“For the life of me I can’t figure out why the left is so excited by the money printing, when all the data says that people that benefit from money printing are rich people that know how to navigate the markets.
Because the left has political power when they can throw some bread and circus at the poor…….who have nothing……and can’t even see themselves ever having anything more than……. a phone, a used car, some clothes, enough cheap food to grow obese, and a roof over their heads.
And dignity.
In essence, all the identity politics is about giving disenfranchised people their dignity back……and it sells pretty well to black and brown people and gays and all the other “special” people to whom the left wants to get to pull the lever……so the left-leaning politicians can still profit from the money coming down from the real rich into their pockets.
Of course, it won’t happen because we have 2 right-wing parties running the show in DC.