RE:RE:RE:RE:RE:RE:Next week earnings ...I certainly agree with your last point - VET is my biggest holding. But I think that your portrayal of gov'ts either having to roll over debt or write it off / inflate it away is a bit simplistic. What many governments are increasingly doing it seems is getting their central banks to buy government bonds. Half of Japan's massive national debt is held by its central bank. There is no interest burden, no clear inflationary implications and no actual requirement to pay it back. My suspicion is that increasingly Canada and the U.S. national governments will follow that route. Hard to know how far this approach can go, as it eventually could have currency implications. But if everyone does it, maybe not.
Oldnagger wrote: Governments never pay back debt.They always either roll it over with more debt (Ponzi scheme ?? ) or ultimately write it off (infation) The great debate of our time is which method will government use ?
My guess is both . A very good reason to hold real assets rather than cash. The only hazard is to not get caught with too much debt in times of rising interest rates'
All the foolish people who invested in Cryptocurrencies and /or vastly over-priced stocks are going to be badly hurt (started already)
inflation rates are long term cyclical . Just look at the period after WW2 that finally ended by High interest rates in 1987. Will this time be different ?? I think not !! Going to cash may be a good strategy for periods of short inflation. I seriously doubt that is the current case. Wishing and hoping is not an investment strategy
Investing in VET is an investment strategy and a very safe one at that !!