/biz/ - Business & Finance

>>19914272

>fed is pumping is not lowering interest too much

The situation in the bond-market is infinitely worse than it was in 2008. Nominal yields were still 5% at that time. They are now nominally 0.7%, and really negative; so that nobody has any good reason to buy a bond. That is a situation which inevitably leads either to default or hyperinflation. The Fed has printed 7 trillion and it can still hardly keep yields down. But it must keep them down at all costs. The stock market is in such a bubble that, if yields rose even to 1%, it would crash. Even 3% yields crashed the market in late 2018, forcing the Fed to re-start Q. E. Tapered liquidity (only $1.5 trillion per annum), and creeping yields, are what are causing the stock-market crash going on at present. Only YCC can prevent it, which will cause the utter destruction of the dollar.

>Also as you can see they came back the inflation adjusted came back to normal

My picture ended at 2012. This one is more recent. Houses are now in even more of a bubble than they were in 2006. The Fed has spent all its ammunition to re-inflate this bubble. When it bursts, the whole system collapses.

>house is a piece a land. There's a finite ammount of land and the land you own along with the house you own is always more valuable compared to when you bought it beside deflation

As I say, beyond providing shelter, which any cheap house can do, the various other aspects of a house are simply luxuries. Whereas gold is a necessity, the only true way to preserve and exchange your stored labour for the goods or services of others. There is a reason why, after the hyperinflation in Weimar Germany, a small quantity of gold could buy a house. Once you have your house, or, as in the case of most people, if you don't even have a house, where are you going to protect your money? Gold is the only safe haven. It has incalculable value during times of financial turmoil.