It's pretty hard to change your job every few months or even every year. With persistent inflation, you'd need to do so to maintain purchasing power.
That's a danger of persistent inflation. There are others. It must be stopped.
I'm with the author for the majority of the article and agree with most of what they say, but they end with a conclusion that doesn't follow in any way the information delivered.
I agree with the perspective on the 'employment crisis' - a media driven message that disguises the real issue: businesses are unwilling to adequately pay employees.
I would have much rather seen the government give far more money directly to people rather than to businesses to then dole out. Somehow that 2nd step is always forgotten by most businesses.
Where the author is incorrect is that despite the fed rate rises and the wealth creation (housing, equities) that is now being destroyed, unemployment is still extremely low and inflation is still very high.
The 'wealth' being destroyed is also fake wealth - it's housing and portfolios.
Your house is going up in value at the same time as everyone else's. You have to buy a new house when you sell your current and that new house is also going to be inflated - you can't really move up this way, only laterally.
Same with your portfolio - try getting margin loan today to pay for your life. You won't have a 2, 3 or even 4 percent interest rate that the market can easily beat. Instead you'll face a margin call as your portfolio plummets 20%. But this run up, like the housing, was fake. If you're not gonna own stocks what else are you gonna do. Bonds? Real Estate? Cash? Foreign Currencies?
Any of those decisions would have been terrible today as well. Every asset type has crashed and cratered. There's no where to 'hide'. Bonds are finally looking good but if you had bought bonds a few months ago they'd be trading at a big discount today. Will that be the case in another few months? No one knows - certainly not myself or the author of the article.
That's a danger of persistent inflation. There are others. It must be stopped.
I'm with the author for the majority of the article and agree with most of what they say, but they end with a conclusion that doesn't follow in any way the information delivered.
I agree with the perspective on the 'employment crisis' - a media driven message that disguises the real issue: businesses are unwilling to adequately pay employees.
I would have much rather seen the government give far more money directly to people rather than to businesses to then dole out. Somehow that 2nd step is always forgotten by most businesses.
Where the author is incorrect is that despite the fed rate rises and the wealth creation (housing, equities) that is now being destroyed, unemployment is still extremely low and inflation is still very high.
The 'wealth' being destroyed is also fake wealth - it's housing and portfolios.
Your house is going up in value at the same time as everyone else's. You have to buy a new house when you sell your current and that new house is also going to be inflated - you can't really move up this way, only laterally.
Same with your portfolio - try getting margin loan today to pay for your life. You won't have a 2, 3 or even 4 percent interest rate that the market can easily beat. Instead you'll face a margin call as your portfolio plummets 20%. But this run up, like the housing, was fake. If you're not gonna own stocks what else are you gonna do. Bonds? Real Estate? Cash? Foreign Currencies?
Any of those decisions would have been terrible today as well. Every asset type has crashed and cratered. There's no where to 'hide'. Bonds are finally looking good but if you had bought bonds a few months ago they'd be trading at a big discount today. Will that be the case in another few months? No one knows - certainly not myself or the author of the article.