Virtuous Cycle

There is full employment in the West but Central Banks keep injecting liquidity. The new money is invested in high tech like Intel's fabs, but some find their way to the bourse. The growing demand for liquid assets fuels rise and the machines, that make the decisions in most funds, play the momentum. As Soros explained in his reflectivity theory, this attracts even more money creating a virtuous cycle that ends with the explosion of the bubble and recession. Prices have reached a permanently high plateau and inflation will keep them there indefinitely. Or not. As for me, although depressed, I play the game. One Hindu guru explains that money can be and is created, and inflated, people look for assets that cannot be created from thin air, like gold, silver... and bitcoin. Illustration: Dutch master Rubens.