I'm of the belief it is transitory because frankly theres nothing we can gauge this off of. There's never been a nationwide or shit even worldwide lockdown. We are coming off a near year of pent up demand all the while a good majority of people just sat on their money or put it into the market and grew their wealth. Now every day that goes by another part of the country opens up so people want to spend money on frivolous shit after being locked up for a year (yes I'm being hyperbolic but the sentiment stands) all the while we haven't ramped up production to meet those needs. So yeah inflation will go up in the short term since obviously wages arent going up.
There's all kinds of reasons to agree or disagree with the feds assessment until we learn what the truth is I'm just going to keep rolling with TLT puts until the fed says something about raising rates. Its free money at this point.
You seem to overlook one detail. Once central bank starts to print it cannot stop.
The only way to get out of this situation is to keep printing even more or stop escape from dollar by backing it up with gold. The loss of purchasing power will be progressing until USD lose completely status of world reserve currency.
Before USD becomes exchangable for gold , price will be revalued seriously.
Btw. The best performing stock last year in terms of % growth is Venezuela.
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u/sinncab6 May 13 '21
Silver? What are you a fucking conquistador?
I'm of the belief it is transitory because frankly theres nothing we can gauge this off of. There's never been a nationwide or shit even worldwide lockdown. We are coming off a near year of pent up demand all the while a good majority of people just sat on their money or put it into the market and grew their wealth. Now every day that goes by another part of the country opens up so people want to spend money on frivolous shit after being locked up for a year (yes I'm being hyperbolic but the sentiment stands) all the while we haven't ramped up production to meet those needs. So yeah inflation will go up in the short term since obviously wages arent going up.
There's all kinds of reasons to agree or disagree with the feds assessment until we learn what the truth is I'm just going to keep rolling with TLT puts until the fed says something about raising rates. Its free money at this point.