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Victor Sperandeo. If The Gov't Can Fix It By Printing, It Will

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Victor Sperandeo interviewed by Micheal Covel recently.

Hard to argue with his assessment too much.

He makes the point that the long run interest rate since 1961 is 6.2% but that if the rate returned to that now, the US government would then be spending $1trn of the $3trn it collects annually on interest and that would, in his words, make some debt holders nervous

Listen here

Edited by JPJPJP

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Low rates are is the "new reality" until it isn't. I'm quite sure policy makers are aware what will happen if rates go up, which of course means they won't. No central banks is going to feck over the govt and bankrupt them.

I think now the only thing that will bring change is when the populace distrust the currency so much they refuse to use it. However I think that is a long long way off. However there are many possible scenarios how this will end, how knows we all may end up property millionaires yet!

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Low rates are is the "new reality" until it isn't. I'm quite sure policy makers are aware what will happen if rates go up, which of course means they won't. No central banks is going to feck over the govt and bankrupt them.

I think now the only thing that will bring change is when the populace distrust the currency so much they refuse to use it. However I think that is a long long way off. However there are many possible scenarios how this will end, how knows we all may end up property millionaires yet!

If cheap money was a panacea, we would have had low interest rates decades ago. It'll just lead to stagnation and malinvestment if that's the route they want to choose to protect asset prices (followed by civil unrest).

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Cheap money = expensive oil.

Expensive money = cheap oil.

There's no real choice post-Peak. The cost of energy has put a boundary constraint on the Krugmanites' ambitions.

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