The Old Normal
Check out my most recent podcast - and the associated drama.
"I feel like a lot of what's perceived as wealth is an inflation illusion."
“The innovation that comes out of the US economy, in the United States, in general is unparalleled, and so this is really the place to be investing for the most part. The smartest smart people and accommodating government, meaning that they allow business to flourish for the most part, and you put those things together and it generates great, great things, and we've seen this now for 200 years out of the US, but for the past over a decade we have had a command economy, which we've never really had before, especially during non-war time, a non- crisis moment.
The government has determined what the GDP is by overspending, and overspending in a grotesque way, and it's fine until the bill comes due, and we are witnessing right now that bill coming due.”
“The Tapering of the QT…”
The Fed will be reducing their anemic QT by $420 billion a year.
“The cap on Treasury redemptions will be lowered from the current $60 billion per month to $25 billion per month as of June 1.”
“They announced at the meeting that they were slowing the taper by an even more dramatic pace than they had originally suggested. I thought that was a clear indication that they see that they can't continue to wind down their balance sheet without creating real dislocation in the Treasury market, and the impact that could have on the banking system is probably what they're most concerned about.”
A reminder:
Oh well, they tried.
"I like to nickname quantitative easing “monetary policy for rich people.” You could quote me on that."
"It is possible to leave university now knowing nothing of financial history, even if one has a degree in finance - even if one has a post-graduate degree.”
Russell Napier
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