Last Friday night, my boss and I had dinner at one of the local popular Japanese restaurant. The view overthere was stunning. It was amazing that having delicious Japan cusine and breathtaking skyline at the same time.
“Let’s go to Japan once the pandemic ends” he suggested.
“Ya, but I can see the end this year.”
“That’s why I booked this Japanese restaurant. I missed Japan so much” he said.
“2019. it was an extraordinary year.”
“Sure.” I agreed.
“Life is short. So do the things which make you happy. And be with people who make you happy. Look for the food in every day even…even if some days you have to look harder.” He looked at my eyes.
“Yup, sometimes I remember the days in 2019.”
“Nothing gold can stay.” He said and drink his sake.
Yes, nothing gold can stay. Everything changed in 2019 and things cannot go back to the way they like in 2019.
Nature’s first green is gold, Her hardest hue to hold. Her early leaf’s a flower; But only so an hour. Then leaf subside to lead. So Eden sank to grief, So dawn goes down to day, Nothing gold can stay.
Senate Democats just passed a USD 3.5 trillion plan early Wednesday. The bill will spend on the establishment of a Civilian Climate Corps, adds new dental, cision and hearing benefits to medicare coverage and investment in affordable housing.
Even though the GOP (Republican National Committee) voted against, the bill has passed without a Republican vote. Biden Adminstration previously said the US government will have tax increases on corporations and wealthy individuals to pay for the USD 3.5 trilliion plan.
There are many conerens about the 3.5 trillion plan will cause inflation. President Joe Biden hit back against information concern on Wednesday and would like to downplayed concerns about price hikes. and cited that his plans for the American economy are working. The President Joe Biden said that the consumner price inflation slowed in July. But his adminstration will also outline a number of resolutions to lower the consumer costs.
However, there is one more concern about his 3.5 trillion plan. There is no one can gurantee the US government will have substantial tax incomes from coporations and wealthy people to cover this plan. Tax incomes may get affected by the pandemic.
The Federal Reserve left interest rate and monetery policy unchanged. This indicates that the US is incomplete economic recovery until now.
Some economic experts believe that Federal Reserve will be wrong on inflation being temporary. From my point of view, it is quite difficult to predict inflation at this moment. Fears about the highly contagious Delta variant of Covid-19 leading to another round of economic slowdown. However, rising infection cases will cause more supply chain interruptions leading to more inflation.
Meanwhile, some leading companies expressed that they are passing rising costs along to consumers which point out that some inflation will stick around.
As there are industry raw material inflation and higher transportation costs, implementing additional prices increases become necessary.
Another concern is that it is stagflation instead of transitory inflation. That toxic combination of slowing growth and rising prices is a real risk and a dangerous signal of stagflation.
Theoretically, stagflation will trigger bullish markets for commodity and bullions. If there is rising inflation, investors will look at hard assets including bullion markets, like Gold, Silver, Platinum.
Do you believe that bullions prices are starting to rise again?
After three consecutive rainy days, I look out the window to see trees which look greener. There are always some birds sitting in these trees and I believe they live there.
I always wonder why birds stay in the same place when they can fly anywhere on the earth. Then I ask myself the same question.
I still remember how my boss asked me to stay here two years ago.
“Birds go wherever the food is and stay where the food is.” He spoke to me anxiously. I understood that he was worried about my decision.
“We are birds in flight, searching the skies for dreams.” I told him.
“Not every tree is a home for every bird.” He said.
“Birds born in a cage think flying is an illness.” I told him.
“At some point we all play by the rules, whether it’s the rules of all mankind, the rules of the Father who is time, or the rules of nature who is mother.” He signed and I could feel his sadness. He didn’t want me to leave.
“Anyway, keep in touch, my dear.” He looked at me and looked in my eyes.
“Protectionism. One day you will understand the rules. This is only one thing more painful than learning from experience and this is not learning from experience.” He said sincerely.