Superb article. Appreciate you sharing the back-and-forth with your friend!
What's interesting is we do not think central bankers are hiding anything. In 2015 the IMF published a paper explaining that the central bankers HAD to use financial repression to try and get the debt under control. We updated the paper and observed that the post GFC period had destroyed more purchasing power than the inflation of the 1970s. The difference is we added debt this cycle instead of reducing it! We don't invest based on macro but the path forward, and the case for financial repression has been an official policy point for the developed world's central bankers since 2015. Your friend's musings seem to be RIGHT ON TARGET!
Superb article. Appreciate you sharing the back-and-forth with your friend!
What's interesting is we do not think central bankers are hiding anything. In 2015 the IMF published a paper explaining that the central bankers HAD to use financial repression to try and get the debt under control. We updated the paper and observed that the post GFC period had destroyed more purchasing power than the inflation of the 1970s. The difference is we added debt this cycle instead of reducing it! We don't invest based on macro but the path forward, and the case for financial repression has been an official policy point for the developed world's central bankers since 2015. Your friend's musings seem to be RIGHT ON TARGET!