How do you think about yields moving higher when interest expense is already such a big budget item? It seems like there would be more incentive to implement yield curve control then to let yields rise past a certain point.
Inflation has been higher than expected from service (read labour) inflation. The surprise is how weak energy prices have remained - but the technological improvements there have been impressive... but I do see widening spread between raw commodiites and refined products opening up. Perhaps we don't need raw commodity prices to rise?
How do energy prices, for example fit in, will they allow "cakeism" ie: boosting household income while avoiding taxing capital?
Energy prices have stayed low, but electricity prices are rising... perhaps we are in a new world already....
How do you think about yields moving higher when interest expense is already such a big budget item? It seems like there would be more incentive to implement yield curve control then to let yields rise past a certain point.
That why I have gold as a hedge.... if rates are suppressed, gold should do well
Makes all kind of sense, has been a brilliant trade so far. Kudos.
Would this environment also lead to higher commodity prices in general which in turn would feed back to a higher inflation rate?
Inflation has been higher than expected from service (read labour) inflation. The surprise is how weak energy prices have remained - but the technological improvements there have been impressive... but I do see widening spread between raw commodiites and refined products opening up. Perhaps we don't need raw commodity prices to rise?