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Originally Posted by NoRush993/951
The dialogue on this thread is all good and thought provoking. Quite an enjoyable read.
In the course of all my readings, I think today's world money flows correlate more closely with the mid 1920's than any other period in time. NIRP is affecting and influencing professional money decisions of pooled capital and redirecting it our way. More along the path of Chinese money driving up Vancouver real estate prices to beyond believable prices, but on a much larger scale. Remember the first goal of a professional money manager is not to lose capital. NIRP insures loses so investment will seek a positive yield no matter how little, as it is better than a loss. The managers are paid on monthly/quarterly/yearly periods and they don't get paid for losses. They will not accept negative bond and cash deposit rates. As long as Europe and Japan have negative yields, all the displaced capital from QE bond buybacks will flow our way. Remember that the EU also is buying corporate bonds and that freed capital is not staying in Europe. Dow 40,000 in your lifetime. And again you will not read that on Yahoo.
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Pension funds have projected their viability rates at an 8% return. The FED set it up so that institutional investors have a means of making a positive return. Hence Equities are the only real game left in town. The FED also bought up all that mortgage back paper and if you look around certain areas there is a lot of shadow inventory sitting vacant. Yet they are building more...
It is all essentially a rigged game, and the data to justify their moves is smoke and mirrors with a wink and a nod to the savvy guyz who dig below the headline news to seek the truth of the economy. So they ain't really hidin nothin.
The picture ain't a purty pig with lipstick on it neither.
Timeline....at some point either there will be so many USD's floating around the world that they will be regurgitated or their will no longer be buyers of the bond paper they are printing....
The US is set to really start paying off on SS, Medicare and Prescription Drugs as the Boomer retire. .with lower tax revenues they will have to print bonds to the tune of a Trillion a year starting in 2017 or 2018? How long will it be before the buyers knees buckle.. Ohhh yeah I almost forgot the FED can be buyin up that paper on the sly....till they get to 7 Trillion on their balance sheet and then?????
So the game of musical chairs can go on for a few more years...till you cross the threshold of some magic number where a guy will wake up and say...WAIT A FKIN MINUTE HERE??? Wats this shyte of 25 Trillion on the books and how are they gona pay for it???.. Let us call it the awaking or an epiphany.
Lets say 2022....give or take a year or two..this ain't rocket science ya know...
So it goes the USA is like Wimpy who ate the Hamburger yesteryear and has to pay back the money he borrowed to buy it today. Only he ain't got the money.... So no more Burgers for Wimpy and no money for the lender...everybody gets fked except for the dead guyz in the cemetery who lived the life on your dime.