Taps Coogan – March 3rd, 2021
Enjoy The Sounding Line? Click here to subscribe for free.
Enjoy The Sounding Line? Click here to subscribe.
Lyn Alden Investment Research founder Lyn Alden recently spoke with Macro Voices‘ Erik Townsend in a wide ranging interview in which she warns that investors should not expect the Fed to save the bond market from rising yields, at least not until they cause more obvious problems in the markets or economy.
She also delivers one the of best argued cases for a ‘reflationary’ outlook with rising commodity prices and higher inflation. According to Ms. Alden, we are entering an era of “fiscal domination,” where fiscal policy becomes more important and more dynamic than monetary policy, something that we started to discuss here.
Enjoy the full discussion below:
Would you like to be notified when we publish a new article on The Sounding Line? Click here to subscribe for free. The Sounding Line is now ad free and 100% reader supported. Thank you to everyone who has donated.
Would you like to be notified when we publish a new article on The Sounding Line? Click here to subscribe for free.
“Fiscal dominantion” tends to go alongside financial repression, where interest rates are held down below the rate of inflation, thereby transferring resources from savers to borrowers. This happened in the 1940s & 1950s in the US and the UK. In that case it was a transfer from the middle class (who had purchased “War Loan” and “Liberty Bonds” out of a sense of patriotism, and to provide for their old age) to the young and the impecunious. This era was one of rapidly rising incomes and productivity. No such prospect is in sight today, so pulling this off politically will… Read more »
Very well said.