phdinsuntanning

Cash: An Embarrassment of Riches

as usual your optimism blinds your beach views. This liquidity for risk takers devaluation is easy profits for banks and for us beach boys baby boomers. A vampire way to recapitalize the broken financial system at the expense of the real economy. You like Brazil, Argentina, ok, study what they did in the 1980s, because this is what OECD is doing now: the lost decade. 1929 also was V shaped, if you look 5 years time series, this time is becoming more like the 1970s after the Vietnam blood and the arab oil revenge. Markets are not overpriced measured in real or even Euro, or troy oz., they are doing 1000s % in cruzados or argentina pesos of the 1980s, this is the virtuous cycle you are promoting. Just tell me one government that escaped hyperinflation voluntarily:
ok, Paul Volker 1983, but he is old to repeat the trick again and you need Pinochet to do the right thing and take a 15 % GDP healthy contraction selling your assets Rudy Dornbush overshooting style and getting out of the current mess in great style. Guts anyone? Naaa, you will be bleeding Japanese style for years as ChinAmerica Republican dream starts vanishing and sovereign Chinese CDS starts balloon fly in the sunset pink sky.