Top economists at Deutsche Bank are now admitting the obvious: The U.S. economy is on a crash course if overwhelming inflation is not addressed and curtailed immediately.
U.S. central planners have increased inflation, debt, stimulus and overall spending by record numbers throughout the COVID-19 pandemic and beyond. The Deutsche Bank economists believe this will result in economic peril unless the belt-tightening process begins now.
They compared the present situation with the spending that was performed during World War II.
“Then, US deficits remained between 15-30% for four years. While there are many significant differences between the pandemic and WWII we would note that annual inflation was 8.4%, 14.6% and 7.7% in 1946, 1947 and 1948 after the economy normalized and pent-up demand was released,” Deutsche Bank noted.
“The consequence of delay will be greater disruption of economic and financial activity than would otherwise be the case when the Fed does finally act,” they continued, adding that the global economy will be “sitting on a time bomb” due to the profligate policies of the interests in charge.
Deutsche Bank has released the first in their series of reports titled, “Inflation: The defining macro story of this decade.” Even though Germans can admit the obvious, U.S. elites fail to mention the obvious as they walk the middle class off the edge of the fiscal cliff.
Liberty Conservative News has noted the analyses of various Austrian economists who have said that the monetary system is about to fall to pieces:
According to Schiff, such an economy is unsustainable. Schiff declared that “Consumption economies are bubble economies.” For an economy to be healthy, it needs production.
Schiff expanded on his views regarding production, saying: “Because you cannot consume what is not first produced. Since our economy is so weak and we’re unable to produce the things that we’re consuming, America relies on strong international economies that are able to produce what we consume.”
The reality is that America has had a Potemkin village economy thanks to its dollar reserve status and the global order it has created where it has offshored millions of jobs overseas for the purpose of importing tons of cheap goods. So far, this has been disinflationary at worst, and at best, deflationary. However, it has come at a great cost, with the US becoming a largely consumption-based country that does not produce much and has seen its heartland hollowed out…
Americans are likely in for a rough 2020s. The American political class is not serious about economic reforms, so many individuals will have to make proactive steps in securing their wealth. Gold and cryptocurrencies will likely play a major role as alternative assets for people to hold in these times of uncertainty. This is probably the most pragmatic strategy going forward for people who have little faith in the current economic order.”
These policies could be the final death blow to a fledgling dollar that looks far less appealing than cryptocurrencies and other emerging monetary instruments these days.