Posted by DigiNomad on 12th of Jun 2023 at 02:27 pm
Agree, but this seems to be mostly about the blunt instrument
(monetary policy). There is also out of control fiscal policy still
driving this train higher (too bad the investments weren't well
thought out). Student loans alone represent 5 billion per month in
additional debt to pay the interest (so much for executive branch
not controlling purse strings). The "inflation reduction act" is
also massively increasing prices in certain secotrs due to it's
size...and it's just getting started. So we have both QE +
very aggressive fiscal policy in play. The FED / monetary
policy gets stuck with most of the blame, but fiscal seems just as
important, if not more (which is the way it's typically taught in
academic econ). When the treasury ran out of money during
the pandemic, the Fed was forced to support congresses bailout
bills by printing money and buying debt from Treasury. They
didn't really have a choice once Congress passed the various
bills.
Posted by highroller on 12th of Jun 2023 at 03:02 pm
Some reads on the issue. Nobody trusts the gov't anymore,
the bond market is 10 times greater in size than the stock market
and that money will flow into hard assets.
Agree, but this seems to
LIQUIDITY - Take time to Review Closely
Posted by DigiNomad on 12th of Jun 2023 at 02:27 pm
Agree, but this seems to be mostly about the blunt instrument (monetary policy). There is also out of control fiscal policy still driving this train higher (too bad the investments weren't well thought out). Student loans alone represent 5 billion per month in additional debt to pay the interest (so much for executive branch not controlling purse strings). The "inflation reduction act" is also massively increasing prices in certain secotrs due to it's size...and it's just getting started. So we have both QE + very aggressive fiscal policy in play. The FED / monetary policy gets stuck with most of the blame, but fiscal seems just as important, if not more (which is the way it's typically taught in academic econ). When the treasury ran out of money during the pandemic, the Fed was forced to support congresses bailout bills by printing money and buying debt from Treasury. They didn't really have a choice once Congress passed the various bills.
Some reads on the issue.
Posted by highroller on 12th of Jun 2023 at 03:02 pm
Some reads on the issue. Nobody trusts the gov't anymore, the bond market is 10 times greater in size than the stock market and that money will flow into hard assets.
https://www.armstrongeconomics.com/armstrongeconomics101/economics/the-coming-liquidity-crisis/
https://www.armstrongeconomics.com/product/the-liquidity-crisis/
armstrongeconomics.com
Armstrong Economics
QUESTION: Marty, You were named hedge fund manager of the year in 1998 for producing the highest return during the Long Term Capital Management collapse over the Russian bond crisis. At the WEC in Orlando, you said in 2019 that we were facing a liquidity crisis that would be similar to that event. Well, the