want to see what it all amounts to? the ole "hyperinflation" and all that?
look at Japan (and eu to a lesser degree). Thats the path we have been taking and that Powell just re-committed to.
See any inflation in Japan guys? crickets. Nope!
it truly is a strange macro financial world since '08 and all the pumping the obama fed did for 8 yrs and now followed trump browbeating the fed . the fed has fully been politicized of course (like everything mind you...think comey and fbi , deep stgate , etc). There is no fed independence.
add to this >$1T budget deficits a la Trump.....not during a recession but rather during a "great economy".
Our economy is like a dying pt being pumped with epi and levophed....amazing it has gone on this long IMO.
Oh and the old adage "never fight the fed"...thats been very very true.
The fed broadcast to the investing world "we have your back. we'll do everything we can (even at the country's long term damage) in order to prop up the market and economy.
This is the background - ZIRP/NIRP- that allows accounting fraud and chronically profitless companies to appear to prosper.
The fed has pushed everyone out the risk curve.
amazing really. People now only buy bonds ...not for safety and coupon payments but rather for capital gains!
Meanwhile grandmothers buy stocks for dividend yields thinking they are safe and pay better than bonds !
crazy upside down world.
what could possibly go wrong, right??????
I personally like gold and off the books assets.
I am fearful of playing the musical chairs Fed game here.....but yes....the Fed has doubled down on their tact and is further encouraging people to assume risk that they o/w wouldnt dream of....
again...what could possibly go wrong? I mean we have a politicized Fed making all the smart decisions for us.
You trust them, right?