How to Invest in A Rising Rate Environment?
(Updated on 12/27/2021) To see broad and persistent price inflation in an economy, we generally need two things . The first is a persistent rise in broad money supply , and the second is a physical constraint on our ability to produce more commodities, goods, or services cheaply . ― Lyn Alden Declines in the working population relative to the nonworking population is an inflationary force. ― Jesse Felder After all, populism , protectionism and deficit spending are all inflation ary . ― Deutsche Bank's Aleksandar Kocic Inflation Awakening (July 2018) ―Pimco In truth, inflation is all about the destruction of confidence in a fiat currency’s purchasing power . And there is no better way to do that than for the government to massively increase the supply of money and place it directly into the hands of its citizenry. In other words, helicopter money and Modern Monetary Theory (MMT) were deployed—and in a big way. The result was the largest increase of inflation in 40 ...