re <<There will be no inflation. There is too much production of everything and not enough dollars to buy.>>
... there is certainly not much if any wage inflation. real wages have been and are trending down in most areas of the planet. School fees, insurance payments, grocery and utility bills, and assets may be on different trajectory depending area.
The Fed is managing monetary issues perhaps too simplistically. time shall tell, but may tell too late.
re <<Rates cant go much lower. Massive deficit spending o the way.>>
... rates can go lower, as more sovereign and eventually perhaps corporate debt trade at negative yield, cause weighted average cost of money to continue drooping.
... deficit spending protocol has been on for a while. Perhaps more massive on way. Had always figured China shall tee-up US$ 250 trillion (by way of rural land reform) when all said and done within 10-30 years, depending on exchange rate and politics.
re <<Trumps tax cuts will help, Houston will help Puerto Rico will help.>>
... much unintended consequences should happen, and am not optimistic that in the aggregate a positive, but perhaps not within anyone's control.
re <<There are lots of assets with 10-20% return in a zero rate world, that is crazy. Those who see will become very wealthy.>>
... at the sharp edge of zirp/nirp, an otherwise minor wobble could trigger very sharp moves, and if leveraged, lead to fatal outcome. In such an arena, perhaps best to play defensive and try to pick up the broken pieces as opposed to piling in w/ the pension funds and sovereign wealth players w/ nothing to lose.
re <<Only human error via raising rates or the unexpected catastrophe will stop this.>>
... we can count on human error.
re <<Buy developing market assets>>
... the martin armstrong prescription is to buy in dollar arena, shares, after hiccup, and hedge w/ gold. i am okay w/ his logic. timing per is thread header, sometime between now and 2026 |
