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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: 3bar who wrote (17778)2/16/2016 11:05:07 AM
From: John Pitera2 Recommendations

Recommended By
3bar
roguedolphin

  Read Replies (1) | Respond to of 33421
 
My Please... I have spent some time writing out a few scenerios on what a global reset would look like, as per your question.... and I honestly do not know how this plays out. With Negative interest rates and overall global rates so very low....we have a situation where there is 50 Trillion dollars or more in the global insurance industry, a plethora of Pension and endowment funds that can not hit their projected rates of return.

You can not get 5 to 7% return on the assets with no yield .... we have created an unprecedented situation .
After a very severe global bear market in assets... the governments and the central banks will have the people demand relief and the long term debt cycle will presumably be alleviated by an acceptance that we can live with quite a bit of inflation and so maybe the government injects money directly into people's bank accounts so they can go out and spend it . This would create demand and move prices higher...

Collectively, there needs to be an agreement that we need a really good dose of fiat money to make all these liabilities able to be paid.

John