5th Economic Climate? Financial repression

[murphy_p_t]

from another thread:

Really, I want an ultra-safe method of making 6% a year. Is there another way to achieve this?

I don't think so. It's a problem for everyone, not just PP holders. I used to have a savings account that paid me 5%; no more. Bond investors have been tearing their hair out over the low yields. You an get municipal bonds at 6% or more in the USA, but those are obviously anything but "ultra-safe".

sounds like the expected result of "financial repression"?

maybe the 5th is "financial repression"?

https://en.wikipedia.org/wiki/Financial_repression

did HB ever refer to repression?

[brownehead]

HB said that lots of things can happen, but whatever it is it will always lead to one of the 4 economic conditions. So financial repression is no exception, it's just a policy that can be consequence or cause of one of the 4 economic climates.

[frommi]

All asset classes move in lockstep, how can that be great for the PP? In the longterm that will not work  . But congratulation to all PP holders for holding course. 

[happyspec]

All asset classes move in lockstep, how can that be great for the PP? In the longterm that will not work  . But congratulation to all PP holders for holding course. 

As we have seen yesterday stocks, bonds and gold simultaneously shot through the roof as BB announced that there will be no tapering  . IMHO this means that the announcement of tapering had the effect of tightening interest rates without having the effect of higher interest rates for our cash allocation. But if the Fed would have tapered the long-term interest rates could have moved up more and the Fed would some day have been forced to raise short-term rates too - and our cash allocation would have profited. But this decision would kill the economy and the refinancing of the US Budget. So the Fed recognized that it isn't such a good idea to take away the liquidity drug from the market. My conclusion: I think there is no 5th economic climate. But we live in times where the markets dictate the Fed not vice versa. BB is in the situation of the wizard's apprentice in Goethe's poem  . And I wonder how they will get out of the mess they initiated...