Comments on: How to Protect Your Portfolio from the Fed http://www.getreallist.com/how-to-protect-your-portfolio-from-the-fed.html Deal With Reality or It Will Deal With You Mon, 02 Jan 2012 04:09:51 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Gregor http://www.getreallist.com/how-to-protect-your-portfolio-from-the-fed.html/comment-page-1#comment-819 Gregor Thu, 26 Mar 2009 02:05:35 +0000 http://www.getreallist.com/?p=1032#comment-819 We have reached a structural limitation in the UK and US sovereign debt markets as the vicious delta of exploding supply and falling inward capital flows (from decreased global trade) take their toll and force monetization. Monetization is of course advertised as a policy lever to get rates lower. Actually, I believe the structure of flows indicates that monetization has come to stop-gap the shortfall in inward flows. Unless the world re-boots soon, and gets trade going and trade flows, we will move on to the next phase of the crisis, and it will be all about national balance sheets. I suspect that the food and grain area are flashpoints where a the first signs of hyperinflation could express themselves. Hyperinflation is both a structural but also a behavioral phenomenon. It could be triggered tomorrow, actually, if the entire world decided to stop buying our debt and the FED had to monetize every new treasury issued. Not saying that will happen. Of course. (cough!) Best, G We have reached a structural limitation in the UK and US sovereign debt markets as the vicious delta of exploding supply and falling inward capital flows (from decreased global trade) take their toll and force monetization. Monetization is of course advertised as a policy lever to get rates lower. Actually, I believe the structure of flows indicates that monetization has come to stop-gap the shortfall in inward flows.

Unless the world re-boots soon, and gets trade going and trade flows, we will move on to the next phase of the crisis, and it will be all about national balance sheets.

I suspect that the food and grain area are flashpoints where a the first signs of hyperinflation could express themselves. Hyperinflation is both a structural but also a behavioral phenomenon. It could be triggered tomorrow, actually, if the entire world decided to stop buying our debt and the FED had to monetize every new treasury issued.

Not saying that will happen. Of course. (cough!)

Best,

G

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