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IPFS News Link • Economy - Economics USA

"Brace For Impact" - The Real Economy Is Degrading Very Quickly

• https://www.zerohedge.com, Via The World Complex

From a huge drop last Friday - which in the past would have presaged further declines the following week - to a significant rebound in the gold price, coupled this time with a major drop in the US dollar - which I will argue may be the signal for a switch to inflationary conditions.

First the chart

We see the nice deflationary trend of the past 18 months looks to have been decisively broken by last week's action.

Although it will be a few weeks before we can be absolutely sure, last week suggests that we are about to embark on another bout of inflation, no doubt as carefully calibrated by the Masters of the Universe as they can fill a shot-glass of whiskey from a pool of liquidity the size of a football field. Either, like a small child pouring very carefully, they have poured only too much, or they have sloshed out enough whiskey to fill a large swimming pool, and we are about to see what happens when it all lands in a shot glass.

Now, why the need for some liquidity?


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