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A great piece by economist Mike Moffatt today in Medium:https://medium.com/@MikePMoffatt/interest-on-federal-debt-the-double-whammy-hypothesis-and-putting-my-money-where-my-mouth-is-584a9aeab326
I’m supposed to be impressed by a $100 wager? If he is wrong, his $100 won’t be worth much anyway.I would be a lot more impressed if he said he was putting a few 100K of his own money into 10 year government bonds at O.5%
If you invest $100 K in a ten year government bond at 0.5 % that has your interest taxed at 25% and inflation averages 2%, after 10 years, your 100K will have been been worth less than 85K. Does that sound like a good investment?
https://www.marketwatch.com/story/here-are-four-reasons-why-investors-buy-negative-yielding-bonds-2019-08-21
Point out where he's wrong. This is our current debt service level:
In the seventies that level was below 2% and the same justification was used to borrow more and by the nineties it was over 6%. You believe that can never happen again. I don't.
OPPO
before the waldo would even consider listening... does that azzhole 'Jesse Brown' have anything to do with OPPO - directly (as a part of the podcast) or indirectly by way of editing/tailoring what's discussed/presented?
He doesn't have a hand in the contest AFAIK.Does it really take one bad story for you to bear such a grudge against a news outlet though ? Do you spit on the ground when you see the Globe and Mail newspaper box ?
All of them are speculative plays, no different from investing in the stock markets only with less potential upside. What is actually happening with these huge deficits is central banks are loaning to governments at artificially low interest rates. In other words, printing money.I'm still waiting to hear if that expert is putting his own money into 10 year government bonds.
All the articles i've read state mr Trudeau will be introducing quite the spendy mcspendster of a spending plan during and/or following the Throne Speech, complete with lots of green initiates. I can see why Morneau and him butted heads.