I'll stop everything while I wait on the inevitable implosion to manifest itself.
If history repeats itself, your wait should be in the ballpark of 6-18 months.
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1/ Central banks are continuing to aggressively inflate the fiat monetary base. Since 2008, the US federal reserve has expanded its balance sheet from .8T to 7.1 Trillion.
2/ This means they have "inflated" that fiat monetary base supply of currency by 21.9% ANNUALLY over that 11 year period of time. Well, then why haven't we seen CPI "inflation"? Easy, because they buy financial assets with that freshly printed money. Bonds are then purchased off the open market and freshly printed cash is supplied into the
free and open economy. This money goes straight into the hands of the people holding assets & only a trickle comes down into the lower-income sections of the economy where a majority of the population (% wise) exists. As the wealthy portion of the population continues to benefit from this process of inserting freshly printed cash into the system, their net worth continues to grow & they get first access to allocate the capital to even more advantageous assets that make more money. This is not free and open but rather manipulated. You won't find CPI inflation because the freshly printed money is nesting itself into financial assets by bidding the market capitalization higher and higher.
Deflation Enters the Party:
When an economy's money supply becomes manipulated in an inflationary manner, it incentivizes aggressive investment (see above). This is because if the cash is simply held, it's value will continue to debase over time. But if the fiat is invested, it can potentially outpace the debasement. When years and decades of a deeply manipulated inflationary fiat money expansion has occurred, it actually creates deflationary prices for some goods and services. Remember, the newly printed money is bidding asset prices, this means the gap between wealthy and poor will expand. If a majority of the population can't afford goods and services (because the percentage of poor are becoming larger each day), then the demand for goods and services go down. If demand for goods and services go down, the price must follow it. Now, the opposite is true for goods and services that are absolute essentials to life. {I.e. Healthcare, Food, Education.}
So, we are seeing price deflation of non-essential goods and services. We are seeing price inflation of essential goods and services. We are seeing hyper-like inflation of bonds and stocks due to the government unapologetically manipulating those markets.
Why is the FED doing this? They have to. Right now, the money they are printing and inserting into the system (non-homogeneously) is not getting to the masses. This is why the velocity of money continues to decline in the system.
That's why the government is now doing direct deposits to citizens. It's got the fancy name, universal basic income (UBI). But don't let the name fool you - they are out of options. They MUST get cash into the hands of the citizens or else further civil unrest will continue to spiral out of control. A majority of people don't have enough money to even pay for their basic needs anymore. Long term, UBI has its problems just like Quantitative Easing (asset purchases) has. But make no mistake about it, the engine is out of oil. They have to print, and they have to get the money into the general population where it's needed most.
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The hedge is with asymmetrical assets such as Gold and BTC.
Because Barrack Obama set the stock market on a path to greatness back in 2008, or so our well meaning liberal gamecocks would claim.
