However, I believe that the increases in raw materials will not be able to reach the final consumer. Today's employment report is emblematic. There are major problems in the supply chain of many industries. And this factor will also affect prices, but how? Finally, the that does not circulate. If money does not circulate it does not create . and all other financial stimuli, for the moment, remain in the financial system and the only I currently see is asset . So how to take advantage of a possible and healthy decline in the markets?
The alarms on the demographic collapse of the western population and also that of China and Eastern Europe intersect with the increase in the average age of the population. The output of production will be decidedly higher thanks to the significant innovations on the productivity front, however, the demand for consumption, determined by a large portion of the population that does not produce (the elderly), will be lower. The effect will have a deflationary structural dynamic. These correlations show that the demographic dynamics of developed economies have not only helped central banks to keep low, but may also undermine their efforts to keep it above zero in the long run. The demographic dynamics underway in Europe, Japan and China have deflationary effects. Demographics, and economic stagnation are concepts that interact with each other on a tighter level than is commonly thought. The more the population advances over the years, the more the economy slows down. The powerful structural forces represented by excessive indebtedness, demographic aging and technological disruptions will continue to provide disinflationary pressure. These are profound structural forces that have been developing for decades and that will certainly not disappear overnight. The rapid growth of the Fed's monetary aggregate measure is a key factor behind the reflationary hopes. The theory might suggest that this portends a spike in , but one cannot look at the monetary aggregate in isolation - it is crucial to consider the velocity of money circulation as well. This is a rate that measures how often a currency unit is used to purchase goods or services. The coronavirus crisis has prompted a drastic drop in that speed. This suggests that more people are saving or investing their money rather than spending it, which is inherently deflationary. What could change the scenario would be if central banks took more serious policies, such as Modern Monetary Theory ( MMT ), "helicopter money" (making payments directly to consumers) or a more permanent shift towards debt monetization.