B' bye, Big Guy....

[ish mailian]

Not sure who the Man who pushes credit is, but I assume that he is
pushing credit on the People, um, so I guess the credit push is so
they can buy houses and fill them with stuff. Maybe the People Pull
the credit too. Maybe there's a push and a pull. Maybe interest rates,
real and nominal, and expectations about the real rate or inflation
can get more pushing or pulling or both. Maybe not. Maybe we will find
out after the UST 10 year goes negative if it ever does. I don't know,
though I've spent decades, since Volcker, convinced that what happened
would happen, to interest rates and inflation, and so I was "right"
about this, and, even when the crisis hit and smart people were
dumping the dollar and buying gold, I was right, but now I know I was
not right for any real or rational or mathematical or economic or
financial reason, none I can moor my yacht to anyway. Better lucky
than good or right. Humbling? Not really. Not anymore. Today I worship
the hammer.

On Mon, Dec 9, 2019 at 3:15 PM Charles Albert <cfalbert at gmail.com> wrote:
>
> I think a reasonable argument could be made that he killed it then...at a time when no one dared touch Ronnie, Ronnie knew enough not to lay hands on Stretch.
>
> The basket of goods looks very different now, and I don't see any single component moving the aggregate soon...it's probably another lever being wrenched from the control of central banks by Mr. Market.
>
> But let me ask you....if the alleged benefit of progress is supposed to include an abundance of Supply of essentials at ever declining prices, why is inflation "desirable"? Is that why The Man is pushing credit?
>
> love,
>
> cfa