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How to Get Rich Investing in Stocks by Riding the Electron Wave

Is this the End of Capitalism?

Economics / Economic Theory Sep 13, 2020 - 01:43 PM GMT

By: Nadeem_Walayat

Economics

If one looks at the facts of rampant government money printing to monetize government debt, permanent deficit spending on an epic scale, debt to GDP north of 100% all to finance social projects such as the UK government paying 80% of furloughed employee salaries, with similar or even greater government interventions in nations such as Germany. We'll this begs the question, how can our economies still be labeled as capitalist?

We are not living in capitalist nations, the slogans might be all about free market economies, capitalism, and theories preached of the boom bust cycle in the financial press and taught at universities, instead we tend to have the booms without the busts! Because we are NOT really living in capitalist economies!

Then what are we living in?


PERMANENT SOCIALIST BUBBLE ECONOMIES! NEW BUBBLES that are continuously being inflated just as the previous one bursts and starts to deflate. Which is why we NEVER GET DEFLATION! Instead we are permanently immersed in an exponential Inflation Mega-trend which confirms that investors should NOT PANIC when BUBBLES burst because the next one that is already being inflated and will be BIGGER than the one before!

What we are experiencing is HYPER INFLATION in ASSET PRICES! Not all asset prices of course, it all depends on the degree to which the assets are leveraged to Inflation. Where the best leverage are those with inflating revenues i.e. corporations that actually produce something that is both limited in supply and high in demand and not easily replicated, in step our AI tech stocks!

Our AI tech stocks are HYPER INFLATING IN PRICE! Which means that valuations will inflate far beyond that which investors consider to be reasonable and thus my expectations for instance for Google is to increase in price 6 fold before the next big tech bubble mania crunch transpires, and this will likely turn out to be an under estimation.

Same goes for other assets such as housing i.e. unaffordable housing will continue to become LESS affordable, all whilst the academic economists and clueless journalists bang on about how the bull run in house prices are unsustainable due to not being affordable all whilst failing to see the big picture of the mega-trends at work, that of the exponential inflation mega-trend courtesy of central bank socialism.

This also means where the 2020 US presidential election is concerned both Biden and Trump are SOCIALISTS! Not the Carl Marx variety for that theory is dead given the demand for workers is evaporating!

The bottom line is that socialism of sorts is inevitable because AI and automation is going to make most workers obsolete, which means we could be looking at some sort of global revolution incorporating the likes of a universal basic income and literally an end to work for most people. This might seem far fetched today but that is the path we have been on for some time, as I don't think the masses are going to put up with relying on charity and food banks in ever increasing numbers due to no diminishing demand for their labour. So just as was the case with the Black Death, Covid is acting as an accelerant towards the making of a post capitalist work world i.e. the government will soon permanently start paying citizens effectively not to work.

What does this mean for our tech stocks? We'll as I have already touched on several times over the years, at the very least they are going to be taxed on what today are largely untaxed profits so as to finance payments to the unemployable masses, and if the corporations don't comply, well socialism has a solution for that - NATIONALISATION.

The rest of this extensive analysis whose primary focus ia a Gold Price trend forecast has first been made available to Patrons who support my work -

Gold Price Trend Forecast into 2021, Is Intel Dying?, Can Trump Win 2020?

  • Gold Trend Recap
  • QE4EVER
  • Inflation Mega-trend going Hyper!
  • The End of Capitalism?
  • Gold Price Analysis and Trend Forecast
  • Silver New All time High Coming?
  • Is Intel a dying mega corp?
  • Nvidia Ampere Blast off!
  • TSMC
  • AI stocks current state
  • Can Trump win 2020?

So for immediate first access to ALL of my analysis and trend forecasts then do consider becoming a Patron by supporting my work for just $3 per month. https://www.patreon.com/Nadeem_Walayat.

And access exclusive to Patrons only content:

How to Get Rich Investing in Stocks by Riding the Electron Wave.

Not to mention trend forecasts such as - Machine Intelligence Quantum AI Stocks Mega-Trend Forecast 2020 to 2035!.

And ensure you are subscribed to my ALWAYS FREE newsletter for my next in-depth analysis.

Nadeem Walayat

http://www.marketoracle.co.uk

Copyright © 2005-2020 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 30 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.

Housing Markets Forecast 2014-2018The Stocks Stealth Bull Market 2013 and Beyond EbookThe Stocks Stealth Bull Market Update 2011 EbookThe Interest Rate Mega-Trend EbookThe Inflation Mega-trend Ebook

Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Nadeem Walayat Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


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