Not exact matches
HERERA: You know, one of the
things you focused on
under our green light section was
inflation.
Crippling price
inflation that has been intentionally
under reported by government statistics will be a
thing of the past.
Under -
inflation is what makes
things go scary (not considering snow and ice).
If you own
things denominated in dollars, those assets will lose value
under inflation.
This is not such a bad
thing since
inflation is
under control and real rates are still expected to be good.
Putting every
thing we earn into a saving account or T - bills, because the long run risk there is that we might
under perform
inflation.
If the US Treasury thinks it can get
things under control, the rational
thing to do is to stuff the long TIPS buyers with as much product as they can gulp before it becomes obvious that low
inflation will continue because the government will soon balance the budget and pay down debt, as they did after WWII.
But if the US Treasury can't get
things under control, the long TIPS buyers will do well, as they have the most sensitivity to rising forward
inflation expectations.