Rising cost of living keeps me focused on saving income as best as possible, less credit card.
Use debit card instead.
People must go to private credit lenders instead of banks for low interest line of credit and mortgages.
Economy must change from credit increasing debt to savings, dividend paying stocks and no credit card use as soon as possible, so higher Central Bank’s high and higher rising will not effect or have less and lesser effect on credit debt as we pay off our credit balances.
Mike Restivo months ago in late 2022, claimed the North American economy was in stagflation and remains so. Stagflation is high inflation and recession simultaneously.
Textbook definition yes, but incomplete. What then is high inflation and growing economy (Gross Domestic Product) simultaneously? It is still stagflation, however the predominant inflationary component is not elective spending or economic Supply Curve increasing on the Curve itself only. The Supply Curve itself is shifted upwards as cost of all supplies rise as have done for many decades. This cannot be anything new or transitory and certainly cannot be falsely called “inflationary” by Central Banks’ misadventure propaganda. This is how Capitalism works correctly. Central Banks harm the consumer needlessly to the contrary.
It is the unnecessary mistaken Central Banks’ addition of higher and ever more increasing interest rates, which must exceed the so called terminal rate of 5.5%. They will increase to no limit as they and they alone deem necessary with no effect as both markets and economy perseveres and thrives following this Mike Restivo conservative financial practice conjecture (2022).
It is insanity to expect workers to starve do death from unemployment. It is insane to expect companies to fail due to high and increasingly higher interest rate costs.
Both must and will adjust using non bank credit instead and produce as company and service as employee in ways to minimize expenses and credit needs.
The nature of work and production must revert to 50 years ago, where cash and dividends, earning and minimal short and long term debt is king.
Those that fail to adapt will fail, hence recessionary economic influences. Those that do adapt successfully will influence a, if not the, bull equity market going forward from 2023.
Investors, of any duration, must and will cherry pick candidates only with sound financial practices. Speculators will ride volatility and markets’ (equity, option, futures, bonds) momentum as it presents itself as usual.
Contact Mike Restivo for free initial consultation how to persevere and overcome the economic damage of stagflation for both personal and commercial finances.
“Get informed, get organized and get engaged!” – Mike Restivo
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