Akin to substance abuse during financial manias fomented by central bank accommodation the damage is being done when everyone feels good. Withdrawal (the repair phase) is thus inevitable consequence.
Central banks have just two dreadful options now that we are at the end of a four decade decline in nominal rates of interest, watch global deflationary collapse run its course or conjure fiat at ever increasing rates thereby wringing decades of monetary and fiscal distortions from the system via price inflation. The very safe bet is that they will resort to massive debasement. Wealth held in most financial paper is bound to vaporize in real terms as consequence, not even a maybe.
Tragically somebody, meaning most everybody, must now hold oceans of bad paper all the way down; there is no net selling in a market. Many people who worked hard while living responsibly are going to be devastated financially through no fault of their own, unless they are prepared. Tangible assets offer refuge, particularly ultra liquid tangible assets (i.e. precious metals).
Thank you for your efforts Jay. No doubt you are helping many.
Bond vigilante 🏆
Akin to substance abuse during financial manias fomented by central bank accommodation the damage is being done when everyone feels good. Withdrawal (the repair phase) is thus inevitable consequence.
Central banks have just two dreadful options now that we are at the end of a four decade decline in nominal rates of interest, watch global deflationary collapse run its course or conjure fiat at ever increasing rates thereby wringing decades of monetary and fiscal distortions from the system via price inflation. The very safe bet is that they will resort to massive debasement. Wealth held in most financial paper is bound to vaporize in real terms as consequence, not even a maybe.
Tragically somebody, meaning most everybody, must now hold oceans of bad paper all the way down; there is no net selling in a market. Many people who worked hard while living responsibly are going to be devastated financially through no fault of their own, unless they are prepared. Tangible assets offer refuge, particularly ultra liquid tangible assets (i.e. precious metals).
Thank you for your efforts Jay. No doubt you are helping many.