David Snowball's February Commentary Is Now Available

Ted

FYI:
Regards,
Ted
https://www.mutualfundobserver.com/2019/02/february-1-2019/

davidrmoran

>> the only way for us to deal with the mountain of government debt at this point will be to inflate our way out of it.

Studzinski has lots of quaint bearish notions, but in this matter he really oughtta study up mo and better, Blanchard e.g., if he is going to be a working financial columnist.

https://www.washingtonpost.com/outlook/2019/01/10/very-good-economic-idea-may-be-about-replace-very-bad-one/

https://www.nytimes.com/2019/01/09/opinion/melting-snowballs-and-the-winter-of-debt.html

https://www.nytimes.com/2019/01/10/opinion/united-states-economy-public-debt.html

https://www.nytimes.com/2012/01/02/opinion/krugman-nobody-understands-debt.html

Sven

the only way for us to deal with the mountain of government debt at this point will be to inflate our way out of it.

Think you meant devaluation of the greenback and there are unpleasant consequences.

hank

Sven said:

“Think you meant devaluation of the greenback ... “

Same thing @Sven - Value of a currency depreciates as assets appreciate in price (but not “real” value.) As consumers we tend to focus mainly on the inflation part (paying more for items). But, in actuality, it’s the paper we’re paying with that has depreciated (ie: been devalued).

Interesting debate. I’ve heard good arguments for both sides over the years. But I keep going back to that fancy new full-sized sedan I bought off a Detroit dealer’s lot for $2,800 back in 1970. Says something to me about how paper currencies behave over time.

Sven

@hank, Thanks for your explanation.

Old_Joe

@hank- If the size of our paper currency had diminished in scale with the decrease in purchasing power it would now be about half the size of Monopoly money.