The case for inflation rising above 3 percent

in #inflation7 years ago (edited)

If Trump succeeds at creating economic growth, this will cause money velocity to finally rise which will spark inflation. After all the money printing during the past decade, you would expect inflation to come but it doesn't matter how much money is in the economy if the cash doesn't trade hands. Its when everyone takes their money at once and starts to buy things which bids up the price on everything causing more buying in fear of higher prices in the future. The case for potential growth is infrastructure expansions and all the regulations being cut back as well. Dodd frank just got cut back which could allow more lending from the banking sector which also could produce inflation.

This provides a huge opportunity for the commodity sector which should spike if this plays out. You will see stocks in those sectors going up 1000%-10000%. If your in the right sector like uranium, your bound to win even if inflation doesn't come to play. Good luck to all!
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what is Money velocity-
It can refer to the income velocity of money, which is the frequency at which the average same unit of currency is used to purchase newly domestically-produced goods and services within a given time period. In other words, it is the number of times one unit of money is spent to buy goods and services per unit of time.