What does Bill Gates know about economics ?
You can cure debt with more debt. This is done by making the money worthless, therefore the debt becomes worthless.
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Gotta love ZERO RISK in the SP500 = $$$
- Thread starter makloda
- Start date
What does Bill Gates know about economics ?
You can cure debt with more debt. This is done by making the money worthless, therefore the debt becomes worthless.
I think it's very easy to understand, when you have a huge amount of debt, of course, you don't want to pay it as it's too large, at that time, psychologically, you don't care about how large the debt is any more, what you can do next? stop borrowing? pay the debt? keep borrowing? I think the choice is very clear. Which one would you choose if you were the government? Almost no choice left. Plus, they can just print the money to pay the debt. So debt is no debt any more... It's just numbers on the paper. That happens in America because America's debt has become higher than it's nominal GDP. Its debt has grown for about 70% since Obama took the chair of the president.How long have we been saying this for, everyone knows you can't cure debt with more debt but it doesn't matter when markets keep going higher.
Bill Gross: You can't cure debt with more debt
Jeff Cox | @JeffCoxCNBCcom
4 Hours AgoCNBC.com
Central banks are trying to solve a debt crisis by piling on more debt, creating a "point of low return" for investors, bond guru Bill Gross said in a letter to clients.
The Janus Capital portfolio manager and Pimco founder takes the Federal Reserve, Bank of Japan and European Central Bank to task for using monetary policy to make it easier for governments to run up debt, all in the hopes of stimulating anemic global growth.
http://www.cnbc.com/id/102240395
More free money today, over 320,000 jobs created, whewww, but guess what?
Still no talk of raising rates, not even by a 1/4.
I bet if the market had a ----321,000 job number they would have an emergency fed meeting to reduce rates immediately after the release of that number, but nope, let's keep rates at 0% even though gdp is above 3% and the unemployment rate now has a 5 handle in front of it. I remember they were supposed to start raiming rates once unemployment fell below 6.5%, that's what BUBBLE ben bernanke said, but we all know his lips quiver when he speaks, I wonder why that is.
Still no talk of raising rates, not even by a 1/4.
I bet if the market had a ----321,000 job number they would have an emergency fed meeting to reduce rates immediately after the release of that number, but nope, let's keep rates at 0% even though gdp is above 3% and the unemployment rate now has a 5 handle in front of it. I remember they were supposed to start raiming rates once unemployment fell below 6.5%, that's what BUBBLE ben bernanke said, but we all know his lips quiver when he speaks, I wonder why that is.
computer traders!7 straight weeks of gains....zero pullback...
Stocks and etfs are up anywhere between 15%-100% in 7 weeks or 35 trading days!!!
Amazing how many will jump into a stock that's up 30% in 7 weeks but in mid October they were selling that same stock as if it was going to a few dollars!