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April 7, 2019 | Hey, All You Inflationists: Was That Your Best Punch?

Rick Ackerman

Rick Ackerman is the editor of Rick’s Picks, an online service geared to traders of stocks, options, index futures and commodities. His detailed trading strategies have appeared since the early 1990s in Black Box Forecasts, a newsletter he founded that originally was geared to professional option traders. Barron’s once labeled him an “intrepid trader” in a headline that alluded to his key role in solving a notorious pill-tampering case. He received a $200,000 reward when a conviction resulted, and the story was retold on TV’s FBI: The Untold Story. His professional background includes 12 years as a market maker in the pits of the Pacific Coast Exchange, three as an investigator with renowned San Francisco private eye Hal Lipset, seven as a reporter and newspaper editor, three as a columnist for the Sunday San Francisco Examiner, and two decades as a contributor to publications ranging from Barron’s to The Antiquarian Bookman to Fleet Street Letter and Utne Reader.

My recent commentary on the catastrophic debt deflation that lies ahead drew the usual sniper fire, all of it from readers who didn’t address a single point I’d made. Each had his own theories about why (hyper)inflation rather than deflation is more likely to do us in, but none was even logical, let alone persuasive. I’m still waiting to hear some good arguments, so text away. If you want to add your two cents’ worth, please explain how the upcoming Great Pension Bust can be dealt with in a way that would be inflationary. And bonus points to anyone who can explain how digital helicopter money will be used to reinflate the financial/credit system when the byzantine clearing network that supports plastic money is in smoldering ruins. A daisy chain, it currently runs solely on misplaced trust — trust that will vanish the instant the banks fail to open. (Oh, and even less trustworthy at that point would be block-chain money.)

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April 7th, 2019

Posted In: Rick's Picks

One Comment

  • Joel Dethlefs says:

    Hi Rick,
    Hyper Inflation is upon us street folk here in Europe and in the USA on my last visit. Housing has doubled in price, Rents up 10-30%, daily food stuffs up 10-30% and for some items it is over 50% because the reduced quantity was at the same price, at first, and pricing has risen from there. This quantity reduction has become so bad that the $$/Euro stores have reduced the quantity of many items to the point that it is cheaper to buy from a box store. I track these things because I live on $$s in EU-ville with constant trips to pull currency to maintain parity. We now spend more than double what we did 5 years ago for our weekly vegetable groceries. Street inflation is not banking inflation. Now to banking—This is a totally different animal and your request for input is confusing to most. From what I read, The wage earners in the EU and the USA have not seen a wage increase that even covers the Feds phony wage inflation numbers for decades which equals bank induced wage deflation and street inflation. Bonds in the EU have been strip mined by the wealthy banks through central bank interest rate deflation, so much so, EU banks have incurred negative rates which is an inflationary cost of reserves. These EU banks have turned to the USA to accomplish the same thing while telling the street people how bad gov bonds are as an investment. Such low rates to the banks make loans to the street a no brainer and are street inflationary although street rates look low on a nominal basis, but inflationary on a %age basis. Adding to this bank deflation which equals street inflation is the fact we street people take all the risk to have a bank account and no longer share in any of the upside profits while most banks here in the EU charge $10- $15 a month to have an account to pay my bills–this too is street inflationary as I get no interest and pay to survive monthly. Bank directed inflation is quite obvious to anyone in the stock market. To think otherwise is immoral. Very few street people can play in this inflation arena and if this is not hyper-inflation at the banking level, what is? Deflation will occur as it always does in the business cycle, but the corporatist monopolies now control the street hyper-inflation pricing so we don’t expect a great reduction in prices for survival needs as the currency value deflates, oil inflates, food related commodities inflate and de-population takes the place of deflation by whatever reason that the street emotionally falls for and wall street can milk for a profit.

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