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Okay, at least now I understand your angle. This might get us into the realm of MMT, which I know Klement hates en.wikipedia.org/wiki/M… .
I still find it hard to understand central bankers leaving their house every day and saying "goodbye, kids, I'm off to impoverish everyone and crush society." I'm 60, and for my whole life I've heard a…
Okay, at least now I understand your angle. This might get us into the realm of MMT, which I know Klement hates https://en.wikipedia.org/wiki/Modern_monetary_theory .
I still find it hard to understand central bankers leaving their house every day and saying "goodbye, kids, I'm off to impoverish everyone and crush society." I'm 60, and for my whole life I've heard about how we should all bury gold in our backyards and stock canned food due to high government deficits and "money printing". No one explains how you're supposed to buy goods and services with that ... "I'd like a tomato, pleaese, so let me slice a few shavings off of this gold bar to pay for it." Guy with a the tomato cart (and a gun) "how 'bout just hand me the whole bar!" Talk about inflation!
Agree with Joachim about MMT. It's like Marxism - empty but complicated enough for the unsophisticated to get lost in. For the rest, there is no easy answer, and it's more likely to get worse than get better in the short run. Keynes was right about one thing though, "In the long run we're all dead." Meantime hang on to at least some gold
Stocks are pieces of paper attached to ownership stakes in companies whose top and bottom lines can inflate right along with nominal price levels, so holding any bonds or cash in size appears to be suboptimal. As for gold, my point above stands ... if you're worried about the collapse of rule of law as to the enforcebility of property ownership and dividend rights to said pieces of equity paper, then I'd suggest you re-watch the "Mad Max" movies. I'm afraid that we all have Walter Mitty fantasies as to how we'll be the only properly-prepared survivors of a financial apocalypse... but remember, if you're the "prepper" laying in gold, canned food, firewood, diesel, and other self-sufficiency items, you're only hoarding supplies for whoever ends up being the best-armed bully on the block ;-)
There are no guarantees. But better to know what's coming than pretend the wizards are going to sort it all out and save everyone. It may well come to warlords - of one kind or another
Then sell that terraced house, sharpen up your skills at the local shooting range, and hunker down for the big one https://www.newyorker.com/magazine/2017/01/30/doomsday-prep-for-the-super-rich .
Have you been researching me ?-)
Nope, just a wild guess. Worries about monetary collapes tend to be inversely proportional to how much arable land the worrier tends to own. Meanwhile, all the farmers in the countryside wish they had a terraced house in greater London, a big stock portfolio ... and time to fret about central bank policies ;-)
Horses for courses, as ever