No monetary or fiscal policy will pull the World out of The Deep Depression.
Di Zeit: "Can the right monetary and fiscal policy keep the US out of a recession?"
Alan Greenspan: "Probably not. Global forces can now override most anything that monetary and fiscal policy can do.
Long-term real interest rates have significantly more impact on the core of economic activity than the individual actions of nations. Central banks have increasingly lost their capacity to influence the longer end of the market.
Two to three decades, ago central banks were dominant throughout the maturity schedule. Thus, the more important question is the direction of long-term real interest rates."
Chairman Alan Greenspan The Great Irony of Success.
ZEIT online, January 30tn, 2008
Strategy for The Crash.
The use of that strategy is not straight forward and it can be risky to implement.
In order to cater to the needs of those who don't necessarily have the
theoretical knowledge or some practical knowledge of financial Markets
or are reasonable enough to be content with what they have, The Yield
Curve designed a fool proof alternative.
The Prudent Strategy:
Sell all your long-term assets at the Market as soon as possible and in any case before we call The Crash.
At the Market means the best price you can get at the moment you decide to sell.
I promise you will be able to recover them at a cheaper price after The Crash.
To be sure, My Yield Curve shall not recognize ownership of any assets purchased before The Crash.
Long-term assets include: real estate, businesses, stocks, debt (money you are own).
It does not include Treasury Bills.
Don't bother for tax credits. If you are lucky enough to be able to pay taxes.
Shalom P. Hamou
Tel Aviv, Ramat Aviv, Israel
I am the youngest economist at My Yield Curve.
Since spring of 1994 I have been working on economic depressions.
I am writing The Tract The Religious Interpretation of (more...)
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