Is fiscal stimulus on the horizon? Kevin Muir, market strategist at East West Investment Management and author of “The Macro Tourist,” argues that the declining efficacy of monetary policy will force governments to run-up even larger budget deficits. In the face of central bank impotence, he predicts that politicians across the political spectrum will turn to Modern Monetary Theory, or MMT, to avert a disaster. Muir suggests that this flood of spending poses serious inflation risks and that a monetary “day-of-reckoning” is forthcoming, but not imminent. He argues that this trend makes negative yielding sovereign debt highly imprudent — particularly in Europe, where he sees a “sovereign debt bubble.” Filmed on October 4th, 2019 in Toronto.
future inflation.
I think that those that were expecting higher bond, sorry, higher yields because of higher
rates in the US, I think they’re mistaken, that will not be the trigger.
In fact, the trigger will be a Fed that is too easy and doesn’t actually chase the market
higher.
That is what the true bond bear market will be created was when we finally get the inflation
and the Fed should be raising rates and they deem that they can’t afford to because there’s
too much debt out there.
That will create a self-fulfilling inflationary loop in my opinion.