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America's Newfound Wealth

Old 03-02-2021, 11:35 AM
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Default America's Newfound Wealth

The greatest financial and asset bubble in history is expanding, with the stock market pumped to new highs, $200K 25' boats selling like chewing gum, 4 year wait lists on $1MM boats, homes selling before they're listed, every trade is booked out 9 months with pool builders booked out over a year, the malls are filled with people from every socioeconomic background imaginable, lined up at Gucci with arms full of packages, restaurants are packed, and new vehicles in everyone's driveway.

Where has this newfound wealth come from? And this economic "recovery" they keep talking about, where is it coming from? Do they really think the pace of spending we're currently seeing can go higher? At 64 years old, I've never seen a spending spree like this in my lifetime.

Someone clearly skipped my house when they were planting money trees. I can only imagine credit debt is increasing exponentially. And with a huge part of the population not involved in the stock market, where the heck is all of this money coming from? I have a feeling this is going to end badly, very badly, once the government subsidized IV is removed.
Old 03-02-2021, 11:40 AM
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Its a few things. First credit is still easy, second the things people are not spending money on do not mean they are not spending money, my buddy's pool company is going crazy right now because people are spending on that instead of their vacations and large holidays. People want to spend money. Friday night in NC was crazy, the busiest I have seen it in years downtown Raleigh. As for property, I am seeing a lot of people leaving states with heavy restrictions and moving to states with fewer restrictions. All of my new neighbors are from those states, pulse they have the freedom to live where they want considering their employers are allowing most everyone to work remotely.

The downside I see coming is corporate real estate is going to take a pounding but it may come back considering people are social animals and will want to be around coworkers sooner or later. I also feel like we are in a double bubble, the bubble we have been riding for the past near-decade and now a covid rebound bubble. it may hurt twice as much when this one bursts. Get ready for it, reduce debt, living expenses and pile up cash to get you through the sh!t storm that will come sooner or later.
Old 03-02-2021, 12:16 PM
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I agree with republicans in that we certainly dont need another 1.9 trillion dollar spending package.
Old 03-02-2021, 12:19 PM
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The "wealth" as you describe it really isn't. It is currency creation that always benefits those who receive the new currency first (boat buyers/home buyers/wealthy people) and hurts the common person last through inflation of goods and not in real wages.

https://www.yardeni.com/chronology-o...tative-easing/

The Federal Reserve and the Federal Government are working hand in hand to destroy the country and our society.

"Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security but [also] at confidence in the equity of the existing distribution of wealth….

As the inflation proceeds and the real value of the currency fluctuates wildly from month to month, all permanent relations between debtors and creditors, which form the ultimate foundation of capitalism, become so utterly disordered as to be almost meaningless; and the process of wealth-getting degenerates into a gamble and a lottery.

Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose." JM Keynes

If what we see happening right now is not that exactly quoted above, then what is it?
Old 03-02-2021, 12:19 PM
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Originally Posted by Spacemaker View Post
I have a feeling this is going to end badly, very badly, once the government subsidized IV is removed.
That seems to be the plan...
Old 03-02-2021, 12:21 PM
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Printing presses are over heating.
Old 03-02-2021, 12:31 PM
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Originally Posted by jko2004 View Post
Printing presses are over heating.
That’s not how it works anymore.

Increasing the money supply is done on a computer now.

https://www.investopedia.com/ask/ans...tral-banks.asp

IMO we are in uncharted territory with this. Hope for the best, plan for the worst.
Old 03-02-2021, 12:32 PM
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Once our country is hopelessly bankrupt it will be easy to change from our present form of government, and move on to bigger and better things...!!!
Old 03-02-2021, 12:34 PM
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Redistribution of wealth is achieved by printing money and government debt. The dollar is devalued thus the people having the most lose the most and the ones with the most debt win, aka the government. Inflation makes the people with money keep it in the stock market to keep up with said inflation which creates a bubble, then, again those with the most lose the most when the bubble pops.

Fiscal conservatism requires some pain, which gets politicians fired. So they keep pushing their dope ($) and we keep our blinders on.
Old 03-02-2021, 12:35 PM
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Originally Posted by Uncas View Post
Once our country is hopelessly bankrupt it will be easy to change from our present form of government, and move on to bigger and better things...!!!
This is exactly what they are planning for. They have taught our kids to be good fellow travelers. They have taken over most of the media outlets. They control most of the large corporations who work with government and against us (isn't that Fascism??) They control the banks.

Now is the time for them to press the rest button and start the explosion/implosion. They want chaos in the streets because in chaos comes opportunities to wrest control. And once they have it, they are not letting go without one hell of a fight.
Old 03-02-2021, 12:41 PM
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Elections have consequences.
Old 03-02-2021, 12:42 PM
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Originally Posted by mikefloyd View Post
Elections have consequences.
Not this last one. Trump would have asked for as much money to blow as Biden. He's a real estate guy and loves cheap money!
Old 03-02-2021, 12:42 PM
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Originally Posted by mikefloyd View Post
Elections have consequences.
They sure did down in GA
Old 03-02-2021, 12:44 PM
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Originally Posted by AtTheMurph View Post
Not this last one. Trump would have asked for as much money to blow as Biden. He's a real estate guy and loves cheap money!
Sad thing is you probably believe that.
Old 03-02-2021, 12:50 PM
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Originally Posted by AtTheMurph View Post
This is exactly what they are planning for. They have taught our kids to be good fellow travelers. They have taken over most of the media outlets. They control most of the large corporations who work with government and against us (isn't that Fascism??) They control the banks.

Now is the time for them to press the rest button and start the explosion/implosion. They want chaos in the streets because in chaos comes opportunities to wrest control. And once they have it, they are not letting go without one hell of a fight.
This is unfortunately correct. It is coming folks.....
Old 03-02-2021, 12:54 PM
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Lot's of people buying physical precious metals. My phone hasn't stopped ringing.
Old 03-02-2021, 12:56 PM
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covid is going to kill us all before we retire so empty your 401k.
Old 03-02-2021, 12:58 PM
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I tend to agree with the fact that the money being spent is just being seen more locally than it was.
Did you see the trips on cruise lines money before? Restaurants, concerts, sports tickets and travel.

I am not ignoring the bubble, but just think about the 4 items I mentioned above. That is a lot of money that is looking for a place to go.

Boats, cars and housing are at least a lot more of an "investment" than a meal at an expensive restaurant, a cruise, or courtside/50 yard line seats at a game.

My personal life can survive almost anything so I am with the group that worries about this stuff. The reality is that when the dollar ceases to be the reserve currency of the world watch out.

I think it was not super long ago that the British pound lost that designation. It was not pretty.
Old 03-02-2021, 01:04 PM
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Originally Posted by WPBTH View Post
covid is going to kill us all before we retire so empty your 401k.

I already retired. And it's great!
Old 03-02-2021, 01:11 PM
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The plan is to make certain that the brown stuff really hits the fan before the next four years are over...

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