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Monetary and fiscal policy typically seen in western economies is increasingly geared to favor the upper end. We're essentially returning to a re-jigged form of
by Gustomaximus 11y ago
Monetary and fiscal policy typically seen in western economies is increasingly geared to favor the upper end. We're essentially returning to a re-jigged form of trickle down economic policy without the openly admitting this. History has shown the effects this.
The optimist in me says it's cyclical and we'll adjust over the next few political cycles in the natural ebb & flow of policy. The pessimist says the US dollar/Fed is due a serous correction in the style of recent EU event with some seriously negative flow on effects so I should be buying gold.
Flip a coin?
- jazzyk 11y agoThe resultant (net) pattern of growth is the sum of cyclical and structural forces. The reason why this cycle is not performing as well as before (and the next cycle will not either) is because of serious structural problems (not only in the US) - mountains of debt (private, government) everywhere, financialization of many economies, very weak productivity growth, etc. So yes, gold could have been a good idea, but the above issues have already been priced in. And you can;t eat gold, in case of a major crisis/depression.
- Gustomaximus 11y agoBeing 'priced in' assumes the market is correct. From that logic we'd never have a crash, so not a fan of that catch phrase. Also you pretty much cant eat ANY investment unless you buy productive farmland. Unless going full prepper (which is more insurance than investment) investments are about 1) wealth presentation to see you through the event, or 2) being in a position to take profit from a negative event.