Ghost of Igloi wrote:
Maserati wrote:
Hey agip, I heard on a video an interesting take on why many current monetary and currency forces are deflationary (you) rather than inflationary (me).
I will post a link if I can find it. It gets into the weeds a bit, and I have yet to listen to it closely.
Deflationary: QE, and stimulus leads to financialization, detracts from investment and savings (required for economic growth); more QE and stimulus required to produce a unit of growth
Inflationary: simply the realization the money can never be paid back, investors price in a risk premium of default; already seeing this sans Fed intervention in corporate bond market, commercial real estate
Am I of a deflationary bent? I dunno.
I'm light on stocks (deflationary)
but heavy on gold and bonds (inflationary)
Maybe I just don't make any sense whatsoever.