According to www.theburningplatform.com- Inflation is hitting everyone. I also reported how the "rich" are experiencing higher rates of credit card delinquencies than ever before. Delinquencies across all tax brackets are exceeding pre-pandemic levels, and the central bank has called this a "trend" that is now "accelerating." These delinquencies will eventually fall on the banks who are already experiencing a liquidity crisis. Every survey shows that Americans are relying on credit more so now than ever before.

A Few Thoughts About The State Of The Economy

Below are a few current thoughts and takes about the "State Of The Economy." The world and markets seem to be on autopilot. There is "no here there," and by that I mean it is chugging alone despite itself. Everything is connected and intertwined in a way that leaves the whole system in a fragile state. Our financial system and economy are so complex and opaque that it is impossible to predict where and when it will break or from where contagion will flow. 

Recently I have not been writing as much as in the past. Like many of you, the business of daily life has been consuming all my time. Like a frog in a pot of water that is rising in temperature, the average American is complacent and remains in a state of denial. Inflation is meandering along with a small drop in consumer goods, but that does not mean it is dead. People, whether passively or actively continue to invest in intangible assets. By not buying  tangible and real items they help to minimize inflation by diverting money from physical assets like machinery, vehicles, and buildings.

Where and how we spend our money has a direct effect on inflation. This extends to which goods are increasing or losing value the fastest. Damn near every economist and analyst seem oblivious to this point. Most tend to take the easy route and simply mix things into an economic stew. In our bullshit world where media outlets like Bloomberg tout the message that if you are not in this rising market, you are missing out, it is understandable that people want in. This has resulted in the "wealth effect" becoming a key driver of our economy.