I wasn't talking about the stock market..... but that is just buying inflation following assets.. borrowing and buying inflationary influenced assets is more abstractly what i'm talking about
There is no easy way out of this.. Bottomline.. deflation means the debt becomes less sustainable, to much inflation leads to complete instability.. by those gold and dxy charts, we are already seeing deflation...
definitely... the guy who has a viable business to support a a 800 thousand dollar house with a 3 percent loan is making money by borrowing.. he borrows basically for a negative real interest rate, makes money on the loan, and any additional appreciation in the real estate market over...
http://www.tocqueville.com/insights/monetary-tectonics
interest read...
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In addition, Russia has announced that it is developing its own version of SWIFT, a network that enables financial institutions to communicate electronically in a secure fashion, which it expects to launch in 2015. The...
"The modern-day central banker trades with counterparties that are giant commercial banks with derivative books of disturbing scale and complexity. It seems impossible that these commercial exposures could be constructed and maintained without the knowledge and complicity of the official sector...
"The Federal Open Market Committee begins its two-day meeting Tuesday. No press conference is scheduled at its conclusion Wednesday afternoon."
got this from cnbc website...
I did alot of research and have traded this structure.. I think about deep otm options as the markets price on a rare event.. how impossible that is to price.. so if your selling an otm, and buying more farther otm.. your just trading one level of rarity against the other.. most of the time you...
I believe all the private sector has done is exploit the manipulations of the fed, rather then put their money to actual work.. . investing in "work" .. like investing in real value creation
yes the velocity of money isn't increasing because the money never trickles through the economy, it gets tied up in bank reserves... I don't understand how that really resolves the issue.. the value of inflation is just then held up inside these bloated bank reserves.. Its like they are...
they print money buy bonds to hold down interest rates.. then pay interest on reserves to keep the money from hitting the market... there has to be some really bad long term effects to this... all this money is locked up in banking reserves... complete market manipulation with fiat currency... I...
Well i do like to live in reality... my thoughts as well are "what happens to bloated bank reserves earning interest payed by the fed" .... Shouldn't that value hit the market and dilute the heck out of the consumer money supply?
My question is how do bloated bank reserves from fed money printing result in anything good? the fed is evidently paying higher interest on bank reserves then the market is paying for that money, such that bank reserves build, and inhibit the money from trickling down and inflating consumer...