With each passing crisis, the scale of economic interventions grows, yet the challenge of maintaining real incomes in the face of eroding purchasing power remains. Reflecting on the past 40 years, it becomes clear that inflation’s compounding impact may lead to even more significant price increases in the future, highlighting the evolving nature of financial challenges.
🔊 … Every crisis gets bigger and bigger … meanwhile real incomes don't keep up with the loss in buying power.
If the last 40 years repeats itself, in 2063 we'll see these prices …
Inflation compounds … every crisis gets bigger. Remember back in 2008 we thought $700… pic.twitter.com/8tc4DoNqTW
— Wall Street Mav (@WallStreetMav) October 22, 2023
The Dollar has lost 17% of its purchasing power in the last 3 years 🔥
And that is if you believe the CPI is accurate. Most people know if it intentionally underreporting inflation. So the loss in purchasing power is actually much more than 17%.
Is your salary up 25% in the… pic.twitter.com/pbf6S783Iv
— Wall Street Mav (@WallStreetMav) October 22, 2023
🔊 … Every crisis gets bigger and bigger … meanwhile real incomes don't keep up with the loss in buying power.
If the last 40 years repeats itself, in 2063 we'll see these prices …
Inflation compounds … every crisis gets bigger. Remember back in 2008 we thought $700… pic.twitter.com/8tc4DoNqTW
— Wall Street Mav (@WallStreetMav) October 22, 2023
The 10-year Treasury yield is above 5% for the first time in 16 years.
Things are getting very bumpy.
— Gold Telegraph ⚡ (@GoldTelegraph_) October 23, 2023
We have rapidly rising interest rates and rapidly rising deficit spending.
2024 may be our first year with over $1 trillion in interest expense.
Higher rates are even causing pain for the US government itself.
Follow us @KobeissiLetter for real time analysis as this develops.
— The Kobeissi Letter (@KobeissiLetter) October 23, 2023
An assumption is everyone who locked in a 3% mortgage is “happy”
Not if they want/need to move for more space. Equity gains don’t offset how much interest/tax they have to pay on a new home
Many could afford to upgrade 4 years ago and can’t now
People hate that
— Amy Nixon (@texasrunnerDFW) October 22, 2023