Aug

22

 In 2007, I think, I heard the Chair dismissing commodities in favor of stocks. That was based on hundred(s) years of past market performance.

We now get Sprott and half of analytical community preaching the reverse, following current decade's results. Both biases, in my view, were due to best (or most simple) assumption of everything staying constant.

What fascinates me: the FED's recent decision to try and keep ZERP constant next two years. This decision alone threw a monkey ranch into my regular logic and MO — and caused me to postpone my bearishness on Gold by additional 10% and a couple of weeks.

But really: how can capitalism adopt to the kind of interest rates meant by the supernatural canons alone! Don't permanent zero rates cause t in all market formulas peg to zero, thus rendering most market algebra dormant? Time has no value? This can't sustain, can it…

I dare hypothesize what may sustain it: baby-boomers. I notice that it's the countries most touched by baby-boomer economic cycle that mostly embark on zero-time-value course at this point in history. Who knew…


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