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Friday, August 7, 2020

Is High Inflation Now A Bigger Danger Than A Deflationary Crash?

Executive Summary

  • Revisiting the Ka-POOM! Theory. Do recent development alter its predicted outcome?
  • Decision-making in an era of increasingly untrustworthy reported data
  • The Everything Bubble is now in full melt-up. Poised for a crash, or the start of a new era?
  • Positioning for the Endgame
If you have not yet read Part 1: It's Time To Position For The End Game, available free to all readers, please click here to read it first.
What's the more likely event at this point: a deflationary crash or runaway inflation? For a long time, Peak Prosperity co-founder Adam Taggart and I have hewed to the “Ka-POOM!” theory, which states that a major deflation will scare the central banks so badly that they overreact and pour too much liquidity into the system, thereby destroying it. To visualize how this will play out, think of what happened in Beirut this week. Customs officials there stored thousands of tons of ammonium nitrate fertilizer at their seaport, for years.  The pile just sat there doing absolutely nothing. After years of inaction, the port authorities became lulled into the erroneous conclusion that nothing would ever happen. But then one day a spark came to life, starting a fire, and then all at once -- POOM! -- the entire thing blew up with devastating effect. This analogy works pretty well here as we approach the Keynesian endgame facing the global economy.  The pile of $trillions in bad debts issued over the past decades has been the fertilizer.  Covid-19 was the spark. And now we’re simply waiting for the entire economic and financial system to explode. Which is why it's so critical now to prepare by focusing on...   _______________ Why is this full report restricted to Peak Prosperity’s premium subscribers? Two main reasons: One — we reserve our best analysis and most directive guidance for the paying members whose financial support makes operating this site possible. Also, given that some of this material is our "best guess" thinking or can be overly revealing of the details of my personal actions, I'm only willing to share that with this private audience. I wouldn't feel comfortable having that level of speculative/private information out in the public realm. And Two — one of the many benefits of premium membership is closer access to the experts on this site. If you’re not yet a premium member but would like to become one and access this full report,  as well as *all* of our premium content, click the button below to subscribe:  
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The post Is High Inflation Now A Bigger Danger Than A Deflationary Crash? appeared first on Peak Prosperity.



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