Is the Future based everyone's fondest hopes of what MIGHT happen?
Suggestion-
BUY Tangible Assets! Borrow to BUY with the longest fixed-rate term possible!
Why? Inflation is coming! Classically defined as too much money chasing too few goods.
In inflationary times, prices of tangible things rise (which actually is a representation that the purchasing power of money is diminished).
See if you agree ... that the "nice chaps" in the first quote are behaving just as self-interestedly as will the "responsible individuals" discussed in the second quote.
A few Comments on/ Predictions for ... the "interesting times" (financial, then fiscal, then monetary) that we are starting to live through.
rce
Inflation Will Accelerate Next Decade, Economists Say
"The Federal Reserve will be unable to prevent the trillions of dollars in government stimulus pumped into the U.S. economy from stoking inflation over the next decade, a survey of business economists showed. The price gauge tracked by the central bank will rise 3 percent a year on average from 2014 through 2018," snip
Oh, that's surprising .... isn't it?
BlackRock Buys ‘Bizarre’ U.K. Inflation Bonds, TIPS (Update2)
July 30 (Bloomberg) -- BlackRock Inc. is buying index- linked bonds in the U.S. and the U.K., betting record-low interest rates and a flood of money into the economies through central-bank asset purchases will fuel inflation. ...
...“If you ask me which central bank is most willing to allow higher inflation in order for growth to go up, the Fed will be on top of the list, and the ECB at the bottom,” said Weinstein. “We don’t want to own any European inflation protection because its central bank is so diligent fighting it.” ...
“Inflation will not be a significant problem in the near term,” Stopford, who’s based in London, said in an interview. “The output gap globally is enormous. That tends to prevent inflation from gaining a foothold over the next while.” ...
Russia Stocks Fall 20% in World’s First Bear Market Since March
By Michael Patterson and Laura Cochrane
Bloomberg , June 22/09 - from 5th last paragraph
“It seems a bit absurd at this point to be using the phrase ‘bear market,’” Butler, chief investment officer of emerging-market equities at Lombard, said in a phone interview. The decline is a “healthy development that will allow investors who have booked significant profits to offload shares to those who have not participated,” he said.
.... what nice, thoughtful & considerate chaps ... stepping aside graciously to allow new participants to take over their investments ....
Why Carney's caution is warranted
Derek DeCloet
Globe and Mail Update, Saturday, Jun. 20, 2009 -from 3rd last paragraph
A government can raises taxes or invent new ones (goods and services tax, anyone?) – or, as a last resort, let the printing press run harder and longer, and allow inflation to work its painful magic.
.... well I guess it's a matter of deciding who might think that inflation's magic is painful .... (a) the administrator(s) of inflation (Bank of Canada/Fed. Reserve etc), b) the gov't of Canada(USA etc), c) current/ future Borrowers or d) current/future Lenders?
....NB pain is rarely "self-inflicted" ... so don't be surprised if the so-called magic of inflation benefits governments more than anyone else.
Who else has i) borrowed HUGE sums, ii) at dirt cheap rates, iii) cannot expect to raise revenues(taxes) fast enough to actually pay the Debt Service Charges when they kick in on next year's budget (nevermind touching the principal - thereby perpetuating the interest charges), and iv) has done it before?
BUY Tangible Assets! Borrow to BUY with the longest fixed-rate term possible!
Why? Inflation is coming! Classically defined as too much money chasing too few goods.
In inflationary times, prices of tangible things rise (which actually is a representation that the purchasing power of money is diminished).
See if you agree ... that the "nice chaps" in the first quote are behaving just as self-interestedly as will the "responsible individuals" discussed in the second quote.
A few Comments on/ Predictions for ... the "interesting times" (financial, then fiscal, then monetary) that we are starting to live through.
rce
Inflation Will Accelerate Next Decade, Economists Say
"The Federal Reserve will be unable to prevent the trillions of dollars in government stimulus pumped into the U.S. economy from stoking inflation over the next decade, a survey of business economists showed. The price gauge tracked by the central bank will rise 3 percent a year on average from 2014 through 2018," snip
Oh, that's surprising .... isn't it?
BlackRock Buys ‘Bizarre’ U.K. Inflation Bonds, TIPS (Update2)
July 30 (Bloomberg) -- BlackRock Inc. is buying index- linked bonds in the U.S. and the U.K., betting record-low interest rates and a flood of money into the economies through central-bank asset purchases will fuel inflation. ...
...“If you ask me which central bank is most willing to allow higher inflation in order for growth to go up, the Fed will be on top of the list, and the ECB at the bottom,” said Weinstein. “We don’t want to own any European inflation protection because its central bank is so diligent fighting it.” ...
“Inflation will not be a significant problem in the near term,” Stopford, who’s based in London, said in an interview. “The output gap globally is enormous. That tends to prevent inflation from gaining a foothold over the next while.” ...
Russia Stocks Fall 20% in World’s First Bear Market Since March
By Michael Patterson and Laura Cochrane
Bloomberg , June 22/09 - from 5th last paragraph
“It seems a bit absurd at this point to be using the phrase ‘bear market,’” Butler, chief investment officer of emerging-market equities at Lombard, said in a phone interview. The decline is a “healthy development that will allow investors who have booked significant profits to offload shares to those who have not participated,” he said.
.... what nice, thoughtful & considerate chaps ... stepping aside graciously to allow new participants to take over their investments ....
Why Carney's caution is warranted
Derek DeCloet
Globe and Mail Update, Saturday, Jun. 20, 2009 -from 3rd last paragraph
A government can raises taxes or invent new ones (goods and services tax, anyone?) – or, as a last resort, let the printing press run harder and longer, and allow inflation to work its painful magic.
.... well I guess it's a matter of deciding who might think that inflation's magic is painful .... (a) the administrator(s) of inflation (Bank of Canada/Fed. Reserve etc), b) the gov't of Canada(USA etc), c) current/ future Borrowers or d) current/future Lenders?
....NB pain is rarely "self-inflicted" ... so don't be surprised if the so-called magic of inflation benefits governments more than anyone else.
Who else has i) borrowed HUGE sums, ii) at dirt cheap rates, iii) cannot expect to raise revenues(taxes) fast enough to actually pay the Debt Service Charges when they kick in on next year's budget (nevermind touching the principal - thereby perpetuating the interest charges), and iv) has done it before?
Bank of Canada says " Recession is Over"
or is it? Thomas Walkom Star July 25/09 wonders abput the "cheerleading"
posted by Walk a Kb or Two in my cassins | 2:27 pm
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