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該来來的總是會來的 July 14, 2016

Posted by hslu in Economics, Energy, Food, Global Affair, Gold, Military, Oil.
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Former Fed chair Greenspan: Inflation is Starting to Rise.

http://www.foxbusiness.com/markets/2016/07/14/fmr-fed-chair-greenspan-inflation-is-starting-to-rise.html

Source: Fox News website

Greenspan’s prediction of a pending slow but persist inflation over a long period of time will come in due time. Average long term interest rate cycle is 37 years.

The bottom of the current “up” cycle was formed about 7 years ago.

There is still a long way to go.

What is problem, you say?

Well, consider these:

Higher crude oil price down the road.

Higher food prices due to food shortage worldwide.

The rise of the Chinese middle income class.

The unstoppable rise of global money supply due to QEs, negative interest rates and stimulus programs by governments in the world.

The gradual improvement of the U.S. economy.

The buildup of debts by the private and public sectors everywhere in the world.

The wealth effects coming from the rise of the stock and real estate  markets in many parts of the world.

The arm race due to the threat of military confrontation in Middle East, Europe and Asia.

So what could the end of this rising interest rate cycle look like?

Another devastating crush of the world economy and the stocks and real estate market. And the return of gold price to new record high.

Crazy me, you might say.

Although we still have a long way to go but, look around, the worse of the deflation threats are behind us.

Greenspan may be right this time.

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