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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 399.29+0.9%Dec 17 4:00 PM EST

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To: Maurice Winn who wrote (147946)4/24/2019 8:48:40 PM
From: THE ANT  Read Replies (2) of 218545
 
Speculative assets have soared as fed rates were recently zero.This happened as assets go up about 30% for each 1% fall in rates. If inflation is 5% and interest rates 4% or-1% real rates, asset gains are less than if rates are 0 and inflation 0 or zero real rates. At 4% rates ones ability to buy assets are limited by the cash flow needed to pay the debt and this holds down assets even though -1% real rates are more attractive than 0% rates The optimum policy would be to set rates at 0% and use MMT to keep inflation from going below zero. You now have maximal asset values with no inflation or devaluation of assets.If inflation goes up then reverse MMT dont raise rates
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