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Killer Bunny

Bearhandkie (bernanke)

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Doesn't that mean he'll allow inflation to run riot and interest rates will not actually rise as we would want? And, I can't bear to think, assets will rise in value...

I understand he has said he'll drop money from helicopters and that he'll target inflation like EU/UK.

So what's the real story?

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Doesn't that mean he'll allow inflation to run riot and interest rates will not actually rise as we would want? And, I can't bear to think, assets will rise in value...

I understand he has said he'll drop money from helicopters and that he'll target inflation like EU/UK.

So what's the real story?

Nobody wants deflation.

That quote about the Helicopter thing is slightly out of context. Generally this man is an inflation Hawk. He is also a conservative. If you want the USA to continue to put up and hold interest rates at a level where they will fight inflation off, this guy is your man. He is a straight talker who lets the numbers do the work and does not even appear to be that comfortable in front of camera.Less politcs more economics.

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He seems both anti-deflationaryand anti-inflationary. A potential goldilocks governor - who will try to keep things "not too hot, not too cold, but just right".

But he is on record as being against aggressive asset bubble popping. See this speech a few years ago: http://216.239.59.104/search?q=cache:2-wbu...+bernanke&hl=en

My money is on him continuing to tighten rates a la Greenspan to check inflation slowly, by stealth and then target a 2.5/3% inflation rate. I do not see him popping the US housing bubble directly - I think US rates another 1% or more above where they are now will do it on fundamentals.

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Thanks D and T

I hope you are both right and I have faith in my fellow HPCers.

There is no doubt at all in mind that a further 1% in US will probably mean 5% in UK and then all of us who STR'd are off to the races.

That Stephen Roach article in press above is mindblowing.

Be still my beating heart...

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Doesn't that mean he'll allow inflation to run riot and interest rates will not actually rise as we would want? And, I can't bear to think, assets will rise in value...

I understand he has said he'll drop money from helicopters and that he'll target inflation like EU/UK.

So what's the real story?

All governments like to print money. It's the easy way out. All they need is an excuse. Deflation gives them that excuse.

Edited by Milkshock

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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