Deus Ex Machina

Published on: January 28th, 2021

Persuading the fiscal authorities to pick up the baton has been a long haul but with monetary ammo low, it must now fill the gap. Covid has provided the crisis necessary to bite the bullet. But what about burgeoning deficits and debt to GDP? Doesn’t that preclude fiscal expansion? Julian discusses that, like a deus ex machina, academics have come up with a solution, rewriting the economic rules to order. The post-Covid fiscal orthodoxy has arrived: The Infinite Horizon.

Comments

  • SS
    Shanthi S.
    31 January 2021 @ 07:38
    Has to be the case. Brilliant and beautifully written.
    • PC
      Paul C.
      20 February 2021 @ 08:35
      Couldn't agree more... this is why we subscribe - we won't read a piece like this anywhere else... RV mines for a truth rather than BS.
  • DR
    Derrick R.
    1 February 2021 @ 13:17
    So, 2023 SPY calls?
  • MW
    Michael W.
    30 January 2021 @ 19:51
    My summation of this brilliantly detailed report: Party on, Wayne!
  • KA
    Kelly A.
    30 January 2021 @ 17:34
    Julian is brilliant, as always. I love Julian. Alas for me, I don't know how to invest or plan or position based on this report. Can anyone enlighten me? thank you.
  • JG
    Johan G.
    30 January 2021 @ 15:54
    Thanks Julian, very interesting, and I suspect you are spot on regarding G7 policy going forward. Lucy Hunts analysis on debt comes to my mind; marginal productivity of debt is hardly going to improve going forward, and that will be pretty bad for growth prospects. Brave New World, but do we really have any good alternative?
  • JW
    J W.
    28 January 2021 @ 19:35
    I wonder if this was merely a big and well articulated set-up for Julian to finally accept the sound money theory and buy into Bitcoin ! :-)
    • HM
      Harry M. | Real Vision
      29 January 2021 @ 15:40
      I think JB likes Bitcoin but just doesn't know as much about it as RP. No matter how bullish he was, he wouldn't be as bullish bitcoin as RP. But yes, this is definitely a bitcoin bullish item.
    • JW
      J W.
      29 January 2021 @ 20:28
      Glad he moved on from gathering bushels of wheat :-)
  • MH
    Malcolm H.
    28 January 2021 @ 19:03
    Thanks for a clear explanation of where governments are going, why they are going there and how economists are supporting them. The long term consequences - political, economic and investment - are profound and concerning. As is so often the case, the public must hope for the best while preparing for something less.
    • HM
      Harry M. | Real Vision
      29 January 2021 @ 15:42
      Quite! And thank you.
  • rm
    roland m.
    28 January 2021 @ 17:04
    Wrong link?
    • rm
      roland m.
      28 January 2021 @ 17:06
      Nm, works