Sunday, September 08, 2024

4 times in history it has happened and always followed by depression

money_supply_2023.jpg

The money supply is officially contracting.

This has only happened 4 times in the last 150 years. Each time a depression followed with double-digit unemployment rates.

Shrinking the money supply + inflation is a nasty combination. Because that means fewer dollars are moving through the system to pay for the higher prices.

At some point the system "breaks" and a deflationary collapse occurs.

This is exactly what happened during the Depression of 1921 (NOT the Great Depression). This happened after World War I and the Spanish Flu.

...If history repeats itself, we may be in a "Deflationary Recession/Depression" - Prices of many things will fall. Houses. Rentals. Goods. Maybe even wages. - The unemployment rate is likely to jump sharply.

What commodities should we trade to avoid the expected crash?

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