BlackRock financial guru is sounding the alarm: return of inflation will shock you – Journal du Coin

BlackRock, pro-crypto and anti-phytos? – What’s going on with the BlackRock international megafond? Not only is he interested in bitcoins and cryptocurrencies to the point that he started investing a few “crumbs” (well, millions of dollars anyway), but now his leader is making the same criticism as crypto enthusiasts about currencies, says Fat …

Is hyperinflation around the corner?

As reported, in particular, by the ZeroHedge website, Larry Fink, CEO BlackRock, was talking aboutinflation, during a virtual conference organized by Deutsche Bank.

Hot dollars (USD)

When a man is in charge of a fund manager 9 trillion dollars assets are expressed, we tend to listen to it. But what he says can do cringe traditional bankers and economists:

“Most people haven’t had a career in over 40 years. [comme moi] and they have seen inflation decline in only the last 30 years. [Une nouvelle période d’inflation] so it will be a pretty big shock [pour eux]… “

As ZeroHedge recalls, Larry Fink did survive the high inflation 70s that followedabandonment of the gold standard President Nixon in 1971, when consumer price inflation peaked at + 14.8% in March 1980

Inflation is already well established

As long as consumer price inflation remains relatively moderate at the moment (+ 4.2% more than 12 months in the USA), this is already anxious when we watchwage inflation in USA.

As the site explains very well Epsilon’s theorywage inflation rose by + 7.7% between the first trimester Feb 2020 and first trimester 2021 g.… While some will try to calm themselves down, you should know that Last 30 yearswage inflation never exceeded 5% in the United States (no more than 4.8% in the fourth quarter of 1997).

Average weekly wages in USD (average per month)
Average weekly wages in US dollars (monthly average) – Sources: Bloomberg and Epsilon Theory

The author concludes that mantra current The federal reserve American (Fed) stating that it is “Inflation is transitory” very similar to a mantra “Subprime loans will be contained”which eventually exploded causing 2008 economic crisis (and indirectly to give free rein create bitcoin Satoshi Nakamoto).

In short, inflation does not threaten us, it already exists and is firmly established, and its possible role in a future major economic crisis is still under discussion. After 2008, prices for safe havens such as gold have skyrocketed. How will Bitcoin behave during the next crisis? In any case, one of the BlackRock executives recently said that the king of cryptocurrency seems to him to be a long-term asset.

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