Thanks for your comment Harry. Right now, more than ever, cash is the only safe haven asset. Gold if you don't trust the system. Your point about the tulip bubble reminds us that investors are not always rational. Buying a negative yielding bond doesn’t seem so crazy when put into context of buying a flower for what it would cost to clothe, feed and house a small Dutch village for a lifetime. Still crazy nonetheless.
On Go big, go now! -
Thank you both. To your question Norman I think option 1 or 2 below is where we will ultimately get to but to quote Winston Churchill: “You can always count on the Americans to do the right thing, after they have exhausted all the other possibilities.” Debt forgiveness of corporates I think is probably a step too far at this stage. Having said that, stranger things have happened!
Thank you all for your comments. I do feel for the RBA – expected to perform miracles while the government focuses needlessly on its surplus target. Some serious redistribution needs to occur and the RBA doesn’t have the tools to do it.
On Why 1pc won’t do it -