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"screwflation" Is Slamming The (Us) Middle Class And Threatening The Stock Market

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Our economy is an environment of "screwflation," in which inflation is rising and the middle class is being hit with a multitude of other burdens, threatening the health of the stock market, according to Doug Kass.

Kass explains that while prices on goods like food and fuel are rising hitting weaker consumers, fundamental changes in the U.S. economy have also left the middle and lower classes disadvantaged.

Those include a housing bubble that has left many middle class Americans unemployed, technology changes that have made many jobs obsolete, temporary work which has made an income stream less reliable, globalization which has moved jobs abroad, and the rising cost of education and health care.

The result is a long-term potential threat to the U.S. retail market. The solution is cutting taxes on the middle class, more tax incentives to encourage job creation, and domestic infrastructure and energy spending, according to Kass.

Read more: http://www.businessinsider.com/doug-kass-screwflation-2011-6#ixzz1OzgPsrSe

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this is a much more realistic attitude towards inflation.

we cant get into the bizarre idea that too much debt is bad for the economy, inflation destroys debt, so inflation = good.

debt maybe bad for an economy but inflation is even worse - it threatens the fabric of an economy, price signals which basically what a market is, just go out the window.

getting rid of your debts via inflation isnt a solution. its a solution to the debt problem, but it trashes your economy in doing it, which your economy is what youre trying to protect in the first place.

its like saying there is a fire in a building and to stop the rest of the building catching fire, were going to knock down the building.

Edited by mfp123

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getting rid of your debts via inflation isnt a solution. its a solution to the debt problem, but it trashes your economy in doing it, which your economy is what youre trying to protect in the first place.

Providing of course none of your liabilities are linked to inflation.....

Although it will completely destroy the economy, but it will more than likely continue with bartering.

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Providing of course none of your liabilities are linked to inflation.....

Serious question: why aren't they? Why aren't all debts inflation linked or is that already priced into risk? Thanks

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http://www.dmo.gov.uk/index.aspx?page=Research/inflation_research

Research papers on index-linked debt

The global market for inflation-indexed securities has grown markedly in recent years and as a consequence the amount of research produced has also increased. The following list details a number of papers on inflation-indexed debt. If you have suggestions for additional references to be added to this list please e-mail these with, if possible, the relevant research papers to Mark Deacon. Page last updated 11 January 2010.

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Serious question: why aren't they? Why aren't all debts inflation linked or is that already priced into risk? Thanks

http://www.telegraph.co.uk/finance/personalfinance/pensions/3534233/Public-sector-pensions-Just-how-generous-are-they.html

A major attraction of public sector pensions is that they are not just salary-linked but also index-linked, which means they keep pace with inflation. This makes them very generous and costly to provide.

Inflation won't help the public sector pensions blackhole. So all the debt the govt "defaults" on via inflation will simply get added to the liabilities owed to public sector workers.....

I think the argument is that with interest rates and debt, inflation has already been priced in, because you aren't going to lend money out at below inflation.

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http://www.telegraph.co.uk/finance/personalfinance/pensions/3534233/Public-sector-pensions-Just-how-generous-are-they.html

Inflation won't help the public sector pensions blackhole. So all the debt the govt "defaults" on via inflation will simply get added to the liabilities owed to public sector workers.....

I think the argument is that with interest rates and debt, inflation has already been priced in, because you aren't going to lend money out at below inflation.

Then how come we can have this farce of a base rate? It makes me very very cwoss.

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Then how come we can have this farce of a base rate? It makes me very very cwoss.

Please report to the nearest re-education centre. Thoughts like this cannot be asked.

We have this farce because the elites want to milk the system.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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