I started buying more I bonds recently. Have been moving in a similar direction except I think the deflation happens after the crash and so am more cautious about entry.
Yeah it seems like a no brainier but they limit purchases to 25k per social. I was making money shorting TLT.... i think it's possible that one stays low until the top blows off
Actually... lol... Fred just announced heightened QT which, as foreign fiat falters amidst inflation, might cause quite a sponge for foreign capital scrambling for interest.
1970s stagflation was a result of wage and price controls, overregulation, combined with American manufacturing prominence on the decline as Europe had rebuilt by that point, low interest rates, and Nixon taking us off the gold standard. Demographics had little to do with it.
Demographics has nothing to do with what causes inflation. Inflation is caused by an expansion of money supply.
If you are speaking about the "stag" in "stagflation" then yes, there was GDP growth back then and demographics plays a part. More people means more resources consumed. The reason they keep importing people into the US is to keep pumping up those GDP numbers.
Japan's expansion of the money supply was coincided with their central bank buying back their debt. By comparison, it's why QE1-3 didn't trigger the big inflation that we see today. For our hyperinflation to happen, they had to give out stimmies to the people and also massive amounts of money to state and local governments. Keynesian economics on steroids.
If you really want inflation, just turn the printers to max, it works every time. But when central banks try to get the benefits of inflation, or at least mask it, they have several tools at their disposal, and one of them is low interest rates and expanding the money supply but keeping it inside the hands of the banks and not out in circulation.
Hyper-deflation? Not on your life with a national debt and the interest to be paid on it. They are trying to inflate our way out of it, which is impossible. Deflation will only occur if we have a depression, or maybe a very long recession.
I started buying more I bonds recently. Have been moving in a similar direction except I think the deflation happens after the crash and so am more cautious about entry.
Yeah it seems like a no brainier but they limit purchases to 25k per social. I was making money shorting TLT.... i think it's possible that one stays low until the top blows off
Actually... lol... Fred just announced heightened QT which, as foreign fiat falters amidst inflation, might cause quite a sponge for foreign capital scrambling for interest.
1970s stagflation was a result of wage and price controls, overregulation, combined with American manufacturing prominence on the decline as Europe had rebuilt by that point, low interest rates, and Nixon taking us off the gold standard. Demographics had little to do with it.
Demographics has nothing to do with what causes inflation. Inflation is caused by an expansion of money supply.
If you are speaking about the "stag" in "stagflation" then yes, there was GDP growth back then and demographics plays a part. More people means more resources consumed. The reason they keep importing people into the US is to keep pumping up those GDP numbers.
Japan's expansion of the money supply was coincided with their central bank buying back their debt. By comparison, it's why QE1-3 didn't trigger the big inflation that we see today. For our hyperinflation to happen, they had to give out stimmies to the people and also massive amounts of money to state and local governments. Keynesian economics on steroids.
If you really want inflation, just turn the printers to max, it works every time. But when central banks try to get the benefits of inflation, or at least mask it, they have several tools at their disposal, and one of them is low interest rates and expanding the money supply but keeping it inside the hands of the banks and not out in circulation.
Hyper-deflation? Not on your life with a national debt and the interest to be paid on it. They are trying to inflate our way out of it, which is impossible. Deflation will only occur if we have a depression, or maybe a very long recession.