tag:blogger.com,1999:blog-7131761677406025498.post7780498235518176377..comments2023-10-22T07:29:23.630-04:00Comments on EconBlog Review: More Stress in Global Markets As Interest Rates and Copper Continue to Break Down "DoctoRx"http://www.blogger.com/profile/07864962793726539567noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-7131761677406025498.post-23733608369016280192013-04-05T13:54:34.041-04:002013-04-05T13:54:34.041-04:00Thank you Doctor. It's good to see you are ba...Thank you Doctor. It's good to see you are back writing. It does seem that commodity drops and increasing bond prices might be in the cards near term, and nothing is impossible. I'm not a money manager and defer to your greater experience and wisdom on such matters. From reading your articles over the past few years I reckon you do not generally advocate "buy and hold" strategies in this environment.<br /><br />Longer term, "something's gotta give." We are not experiencing a repeat of the 1980's by any stretch, not that you said that. Political and economic conditions in the US and worldwide are vastly different than just 30 years ago.<br /><br />A currency shock involving the US dollar is a definite risk (but not a certainty) under the present indefinite QE/slow or no growth/uncontrolled gov't spending scenario. This scenario does not seem about to change. Such was not the case in the 1980's. Those holding dollar-denominated bonds long term,now at historically low interest rates, may end up being decimated -- and not necessarily by any substantial rise in interest rates. Steady inflation over the long term is quite sufficient to decimate dollar-denominated holdings. <br /><br /> Jonathan Jaechhttps://www.blogger.com/profile/10379443520888976176noreply@blogger.comtag:blogger.com,1999:blog-7131761677406025498.post-988314892178988752013-04-03T20:51:53.873-04:002013-04-03T20:51:53.873-04:00I'm not predicting deflation. But commodities...I'm not predicting deflation. But commodities can drop and bond prices rise during a period of monetary and price inflation. Remember the '80s?"DoctoRx"https://www.blogger.com/profile/07864962793726539567noreply@blogger.comtag:blogger.com,1999:blog-7131761677406025498.post-6191507145543014512013-04-03T15:45:12.196-04:002013-04-03T15:45:12.196-04:00If the Fed via QE is indefinitely buying a substan...If the Fed via QE is indefinitely buying a substantial portion of US Treasuries with newly created money, and there is no other credit bubble seemingly about to burst, how can the US economy be on the verge of another so-called deflationary episode? Your thoughts please.<br /><br />Bitcoin has been massively out performing FRNs lately, that should tell you something.Jonathan Jaechhttps://www.blogger.com/profile/10379443520888976176noreply@blogger.com