D>S leads an increase of price of that commodity or service.
Inflation - pay attention, moron - is a general increase of prices due to an increase in money supply. That includes the price of labor. All boats going up when the lake gets more water. Duh!
This means that only those who can issue new money or add more water to the lake can cause inflation - aka the central banks in cahoots with the ruling mob.
Nobody else can or they would go to prison for printing fake money.
You guys are not necessarily contradicting each other.
But here's a question for you Rich. Do the same mechanisms you described, apply when it happens in a country that is dependent on the USD, rather than an own currency which they could print?
I suppose that you would argue - in this instance - that said country is simply "importing" American inflation.
But that opens up a bunch more questions? Can you really put more water in the lake, to make boats rise, when the lake is an actual ocean as it is in America's case?
America has to print money not just for itself, but the world. When America doesn't print enough, and the dollar starts becoming very strong - imports from the rest of the world pour in, and American investment goes out. When America prints too much, and the dollar becomes weak, this favors American exports, and the investment flows reverse and money begins to flow into America from places like Europe and Japan.
Printing too much dollars is bad for the average American, but it could be beneficial to the American economy as a whole.
To my misfortune, during 2022, I was bombed on this forum constantly with messages about the collapsing Russian stock market.
In vain, I tried to explain to people that if they think a decline in the stock market will force any kind of change in Russia's behavior - then they were idiots.
Now I see this with America.
Half of America doesn't own stocks, and has never owned one.
A big portion of the other half, has only the vaguest conception of what's happening in the stock market - because they own those stocks through their pension plans.
The good thing about the markets is you can't argue with the numbers - it is down and if you are not invested, like most people, then no need to worry.
If you are invested you need to understand reasons and what will turn this round.
All there's to know about the markets is that you witness the herd of unethical manipulators, the traitors running for the exit, and the people selling America down the drain for lousy dollars. Globalists, internationalists, whose crooked game is being exposed, manufacturing in China country without environmental protection, no rules whatsoever, global major polluters using slave labor with impunity and dumping junk production in America without tariffs or penalties. So the rats are crowding the exits, taking looted profits with them, but where but America can you invest their dirty money? So they will be back.
Where else can we invest ? Well in my case Poland, France, Germany, UK and even a bit in South Arica and India. The world is a big place and we are not going to spend the rest of our lives dancing to the tunes of some bitter old factory workers in Ohio.
America is the biggest part of my portfolio but still only 30 percent
Globalists, internationalists, whose crooked game is being exposed,
Great post, Ptak.
How we allowed this tariff nonsense to be so unequal for so long should be investigated and the mother fvckers who caused it should be tried and shot an hour later.
My best explanation is that we allowed this bullshlt to help the world become "more prosperous, free, and democratic".
The US and Americans? Fvck 'em...Eggs and omelette...
Where else can we invest ? Well in my case Poland, France, Germany, UK and even a bit in South Arica and India.
You are limited in your understanding of what moves the world economy and your financial moves,won't move a single hair on drunk homles bum's ar*se; you or I are insignificant amebas caught in the enormous current of running for the exit traitorous levitants. You and I do not influence; we do our best to survive. If things go bad, Europe will be hit much harder than America; with your trade barriers, Europeans fail to see that China is the real enemy, not the US. For you and me, the best strategy is to buy while stocks are inexpensive because as sure that the sun will rise in the morning, the stocks will return to normal levels soon
So, given that you are obviously an experienced investor maybe recommend a few stocks that you think will do well over a 12 month and 24 month horizon.
And give us a number for the S&P that you consider a "normal level"
That's what this thread is for - it is not an attempt to move the world economy, but to make a few zloty for our own retirement and manage the currency risks of living jn Poland.
You and Rich are doing your thang at the moment though - ill informed ranting and senseless nocturnal spam. There are loads od other threads for that.
For sure, they will level up a bit, but the Trump tariffs will hit the global economy hard and will hurt America too.
Rich has enough money and doesn't need to "invest"
Same here.
You don't "invest". You speculate. A casino for card counters ...
I have to agree with you there, I have fixed rate ISA's which guarantee a payout.I would never gamble on the stock exchange as idiots like JR Jim claim to do.
