Our current economic problem is due to massive US dollar printing or quantitative easing leading to cost push inflation.
There are 2 types of inflation which is demand pull inflation and cost push inflation.
Both need different remedies.
Demand pull inflation is because there are too many money chasing too little goods.
While, cost push inflation is due to rising goods price.
Currently, it is due to cost push inflation and not the masses becoming richer which is aka demand pull inflation.
The real solution is by bringing down food price by subsidising, more food planting or acqriculture activity and more international trade as well as world peace.
But, the US and worldwide is increasing interest rates which is a remedy for cost push inflation.
Do you think making the masses poorer will solve the issue of higher food price? No matter how poor you are, you need to eat.
The US is making the masses pay for their mistake of QE which leads to cost push inflation and increase interest rates which will then leads to the masses become poorer and leads to recession sooner or later.
Remember, how poor we are, we need food, water and electricity.
The US remedy is worse than the cause. We will be in massive inflation and recession soon aka stagflation.
So, our world economy is in limbo.
Now cash is king.
The solution now is to buy dollar for penny, which will make us richer sooner or later as we have a big buffer or margin of safety no matter what asset class we are in be it stock, crypto, houses or collectibles or what phase of economy we are in.
As always be bless,
Dr. Lion.
