My BSBA was in economics so I know about this negative yield theory but it isn't as commonly accepted as the article HA posted.
There are just so many variables out there right now, especially when Ukraine and Russia are at war and energy prices are spiking.
Will inflation be long term? Or will OPEC decide to open up more production?
I can see inflation subsiding by the time of the midterms especially if the worldwide economy goes on a saving binge. Recession. But I could also see a scenario where people spend on commodities and investments as a hedge against inflation.
So flip a coin.
I am guessing the economy will contract. And then Biden and the Democrats will have another excuse to spend trillions to prime the pump and help out local and state governments by handing out more pork we can't afford.
Consumer interest rates are still pretty low considering inflation right now is 8%. I was just offered an unsecured loan for 100K at 4%. The lender must believe inflation will ease.
Thomas Sowell: There are no solutions, just trade-offs.
FredHayek wrote: I am guessing the economy will contract. And then Biden and the Democrats will have another excuse to spend trillions to prime the pump and help out local and state governments by handing out more pork we can't afford.
This is my fear as well Fred. Democrats only have one play and it's the same one that buys them votes during every election. They either don't understand economics at all or they do and want more people dependent on government... there are no other explanations that make sense. If we are fortunate, they will get completely gutted and bleed out in Nov, and that's when they will decide to shuffle the dementia patient out the door.
The left is angry because they are now being judged by the content of their character and not by the color of their skin.
