Please explain how to keep up with a fricking 7.9% inflation rate...

[Millionaire]

Did Japan, Germany, France, Denmark, Switzerland, Norway, Finland, Belgium, Holland turn into Venezuela?

The combined population size of those countries you list is about the same as the USA.
But I don't see anything like the amount of technological innovation from those countries compared to the US. Even though eduction levels are just as good.

Socialism dampens the entrepreneurial spirit and dampens innovation.

Elon Musk didn't head for any of those places, he headed for the USA, it was not even that long ago, it was just 1992!

“My goal as a kid was to get to America basically. There is definitely no other country where I could have done this—immigrant or not”
-- Elon Musk

 

[TrailerParkTed]

Lots of people. Say consume less. I say F*ck that. I’m retired. I didn’t retire to watch my pennies.
When Covid hit I picked up a bunch of bonds for my bond allocation(most of my $ is long term money, and asset allocated) at very good rates. A lot of them have matured, and I’m awash in cash. Yesterday I invested about 20% of that cash in a 5 year bond ladder with a 3.2% yield (first maturity 2024).
And it struck me, here I am happy to get 3%, but inflation is 8%. But for my bond money, there’s nothing better without taking risks that aren’t appropriate for that bucket of money.

which led me to think (reaffirm) that the only way to beat inflation is to invest in equities. Period.

I bought $300 in CEFs about a month ago. Things like PTY($13.70) PHK, PCN, PDI, YYY near their 52 week lows and wonder why PTY is up about 20% with inflation screaming?



Does this mean the Fed is keeping long bonds stupidly low? Bonds are not my best strength, any thoughts appreciated.

 

[zdreg]

Bidding wars for properties happen in a society where housing becomes a commodity

Housing has always been a commodity.

When local government authorities interfere in the housing market builders stop building and the condition of the housing stock deteriorates and rents and price of homes skyrocket.
NYC is the prime example. Rents are the highest in the nation. People in rent regulated apartments are literally stuck in their apartments. They cannot afford to move to unregulated apartments. For years the net housing stock declined when housing properties were abandoned or changed to other purpose was greater than new housing built. Builders did not build because of fear of rent regulation.

 

[zdreg]

No every road leads to Venezuela. Communists, fascists and religious autocracies all impose strict controls over their economies. Doesn't Russia ring a bell?
Now, name me a single country in the world that imposes no rules.

Capitalist countries have rule of law in which private property is protected and contracts enforced. You cannot have capitalism without the rule of law. Obviously in mixed economies not every road leads to Venezuela. It is a matter of degree.

 

[Specterx]

The typical Mantra. "if you don't do what we dictate under cold blooded capitalism then the country turns into Venezuela" . Did Japan, Germany, France, Denmark, Switzerland, Norway, Finland, Belgium, Holland turn into Venezuela? Not that I can see.

Bidding wars for properties happen in a society where housing becomes a commodity and where venture capital firms and hedge funds can buy up huge swath of land and where there is zero rent control. In a nation that borrows without limits nor regard for future generations. Inequality and limitless greed lead to a society where huge portions of the population end up with nothing. That's what has disenfranchised an entire young generation and turned them into Muppets without hope. Not social market economic ideas that are practiced all over Europe and have led to a much more balanced society and lesser inequality. Last time I checked all above named nations produce top tier technology and play in the top league. Their policies can't be all that bad.

You missed a major factor, which is mass immigration. The Anglo housing-spiral countries - US, Can, Aus, UK to a slightly lesser degree - have rapidly growing populations thanks to their Great Replacement migration policies. This drives up housing demand and thus prices; Florida, for example, has to build a city the size of Orlando every single year just to keep up.

 

[smallfil]

The combined population size of those countries you list is about the same as the USA.
But I don't see anything like the amount of technological innovation from those countries compared to the US. Even though eduction levels are just as good.

Socialism dampens the entrepreneurial spirit and dampens innovation.

Elon Musk didn't head for any of those places, he headed for the USA, it was not even that long ago, it was just 1992!

“My goal as a kid was to get to America basically. There is definitely no other country where I could have done this—immigrant or not”
-- Elon Musk

If you think the Socialist countries of Europe are the bees wax, why don't you live there? Put your monies where your mouth is. It is all BS, talking thru both sides of their mouths. That is what it is. Question: Why are the biggest admitted Socialists like Bernie Sanders and Alexandria continue to live in the US and not Europe? Why are the extreme liberals in Hollywood living in the US and not Europe? Even those who promised to move to Canada if President Donald Trump was elected are still in the US. Why? If it is so bad in the US, compared to Canada, UK, France, Germany----why are you Socialists still living in the US? Explain that one to me. It just doesn't make any sense.

 

[Millionaire]

why are you Socialists still living in the US? Explain that one to me. It just doesn't make any sense.

I don't think you meant to quote me. As i was agreeing with you in my post that you quoted.

But the socialists will obviously say 'we want to help the poor people in the US, how would we do that if we ran off to Europe'?

 

[KGTrader4]

I bought $300 in CEFs about a month ago. Things like PTY($13.70) PHK, PCN, PDI, YYY near their 52 week lows and wonder why PTY is up about 20% with inflation screaming?



Does this mean the Fed is keeping long bonds stupidly low? Bonds are not my best strength, any thoughts appreciated.

the fed doesn’t control long rates, only short. At least not directly

 

[smallfil]

I don't think you meant to quote me. As i was agreeing with you in my post that you quoted.

But the socialists will obviously say 'they want to help the poor people in the US, how would running off to Europe do that'?

Not intended for you but, for Socialists and those who support those views and bash the US in the process. If Europe is so good, why not live there instead, of the US? The US can do without so called Socialists within our midst. Anti-Americans who hate the US yet, continue to live in the US?

 

[sebking1986]

You can see why some are turning to staking even stable coins to try and beat it.