And how does that trade relate at all to you spamming the board with crash calls ? What are you shorting in the Nasdaq right now ? Put your money where your mouth is. Why are you long anything if you truly believe markets are about to crash ?
Oh no, I am very aware of the actual policy Nine. I get QE ending. I get tapering. I get hiking interest rates. Yada yada yada. I am asking you this: If an economy grows at [3%] annually, but its government prints money at a [30%] rate annually, how on earth can there NOT be inflation in the long run, more/less to the tune of 27% over the very long run? No amount of the central bank hiking interest rates, increasing reserve requirements, etc. etc. etc. will fix that in the long run. Or if you disagree, can you explain how? Thanks!
They are starting to address that... they are starting to address that... they are starting to address that.... how? By trying to pass a NEW stimulus package to the tune of TWO TRILLION?!?! And that is ON TOP of them already printing money at like an unbelievable 25 to 30 % annual rate is the last I read. So, you were saying about them starting to address that?
They are stopping their treasury purchases, and will be shrinking the balance sheet, and raising interest rates? In your view, how do they stop "spending money like drunken sailors"? What do they have to do?
I guess he means the govt side while you refer to the FED but in the end it's the same mule. If the govt wants to cut spending it will crash it's economy so they won't. I say we will have a new QE soon and the Fed is just crashing the market for an excuse to do so.
So, your first sentence right there. "They are stopping their treasury purchases". Do you think that will hold up? The U.S. government is issuing bonds to finance their out of control spending, to the tune of 30% or so new dollars every year (likely to get bigger), can you imagine what will happen if the Fed does not step up to buy a big portion of those bonds? Interest rates go THROUGH THE ROOF. And that both kills the economy, and means the U.S. government will be spending that much more to finance their drunken, crazed spending. The Fed will never let that happen, they will never let interest rates go to 20% because they are not acting. They will be forced, one way or another, to keep buying those bonds to keep interest rates down. All the Fed's increasing bank interest rates, increasing margin requirements, yada yada yada cannot do squat in comparison to a government spending at a clip that increases the money supply to the tune of 30% or more yearly. All just IMO of course, but its all true unless someone can explain things to be differently, logically...