Normal
It could very well end up like the 1970s, post unpegging of USD to gold, where there was high inflation from RAMPANT creation of monetary supply and the FED tried to hike then economy went into recession/stagflation. inflation got so bad, around 14.8% (which coincidentally using olden day measures, is around what USA/the world is experiencing now) , that they finally had a proper FED chair that just hiked from 11.2% (1979) to 20%(1981) to finally overcome inflation. However this caused MASSIVE unemployment >10% and recession. and of course Australia got our recession during that time in 1982 as well.GOLD went from $40USD to $650+USD during the 70s high inflation decade. It only went back down to 260 over next 2 decades due to positive real rates and lack of "inflation panic" but its now at 1800 another 2 decades post 2000 dotcom boom and massive "money printing"Hyperinflation is already here NOW. We can see it in food prices/ car prices/ goods/ services/rents/property prices, dont have to be a genius to see it. (you know inflation is really bad when RBA is hiking before an election. probably so in case things go sideways with hyperinflation, they can say 'hey we did start hiking when everyone else in the world was hiking' even before the elections, so dont blame us and say we were too slow to start hiking, etc..etc...)3% will be a joke vs 10%+ inflation, it will fail like 1970s, BUT most countries swimming in debt wont be able to service anything higher than 3% or so, otherwise they default.S**T is about to hit the fan. I would think at least 10%-20% in PM is prudent as well as 6months store of food/TOILET PAPER, when everything tanks, at least that 10%-20% might 10x over the next decade as another "inflation panic" sets in again.
It could very well end up like the 1970s, post unpegging of USD to gold, where there was high inflation from RAMPANT creation of monetary supply and the FED tried to hike then economy went into recession/stagflation. inflation got so bad, around 14.8% (which coincidentally using olden day measures, is around what USA/the world is experiencing now) , that they finally had a proper FED chair that just hiked from 11.2% (1979) to 20%(1981) to finally overcome inflation. However this caused MASSIVE unemployment >10% and recession. and of course Australia got our recession during that time in 1982 as well.
GOLD went from $40USD to $650+USD during the 70s high inflation decade. It only went back down to 260 over next 2 decades due to positive real rates and lack of "inflation panic" but its now at 1800 another 2 decades post 2000 dotcom boom and massive "money printing"
Hyperinflation is already here NOW. We can see it in food prices/ car prices/ goods/ services/rents/property prices, dont have to be a genius to see it. (you know inflation is really bad when RBA is hiking before an election. probably so in case things go sideways with hyperinflation, they can say 'hey we did start hiking when everyone else in the world was hiking' even before the elections, so dont blame us and say we were too slow to start hiking, etc..etc...)
3% will be a joke vs 10%+ inflation, it will fail like 1970s, BUT most countries swimming in debt wont be able to service anything higher than 3% or so, otherwise they default.
S**T is about to hit the fan. I would think at least 10%-20% in PM is prudent as well as 6months store of food/TOILET PAPER, when everything tanks, at least that 10%-20% might 10x over the next decade as another "inflation panic" sets in again.
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