By: Vincent Cate
0% interest rate is not sustainable. Inflation is higher than that, so anyone who can borrow from the Fed can make money just borrowing and buying commodities. The more people that borrow and buy the...
View ArticleBy: Vincent Cate
But you can not say a 30 year bond is the same as dollars if the value relative to dollars goes up and down. This will be particularly dramatic if he start to get hyperinflation. The real value of the...
View ArticleBy: Vincent Cate
Inflation is an increase in the money supply which comes from the government spending more than it takes in from taxes and bond sales. Hyperinflation is where the government can’t stop making new...
View ArticleBy: Vincent Cate
Wikipedia is closed today so one online list is not available. And I can’t seem to put my hands on my Bernholz book. I will try tomorrow to get a list of hyperinflations that don’t fit the standard MMT...
View ArticleBy: Pierce Inverarity
Cullen put his money in bonds last year and made 25% in dollar denominated terms. Gold was up about 10% or so, denominated in USD. The USD spot index itself was up about 1.46%. Money’s a flexible...
View ArticleBy: rodney
Vincent. Inflation is spending beyond the production capacity of the country. I can imagine that during the revolutionary war a good portion of the working population were employed in the army and not...
View ArticleBy: rodney
weimar germany was trading marks in the fx market to pay reparations which destroyed the currency. Speculators looking for a quick profit didn’t help. The country had little productive capacity left...
View ArticleClik here to view.
By: exertia
Cullen, I find it strange that you never talk about your investment firm on your blog or even basics on how people can get there if they wanted to. I took a long and complicated path that involved...
View ArticleBy: wh10
Vim, People can’t spend bonds. There, I said it. How does this meaningfully change my argument. Also, see Fullwiler’s quote in my comment at 2:26PM for more on this. BTW, I am not adverse to having my...
View ArticleBy: Vincent Cate
It is not the same currency if it can go up 35% or down 90% relative to that currency. If a 30 year bond has big changes in value relative to dollars then it is not dollars. Now a 30 day bond is very...
View ArticleBy: vimothy
wh10, I’m not really talking about the “hot potato theory”. AFAIK, that’s a something which only has currency (yuck, yuck, yuck) in a particular part of the econ-geekosphere. I’m not even that...
View ArticleBy: Vincent Cate
They don’t have to decide to print like crazy, that is not how hyperinflation happens. The problem is that most of the $15 trillion in debt is short term now and they are spending nearly twice what...
View Article
