Saturday, January 21, 2012

Gentle ben : Why not buy a couple trillion in treasury debt

When do you know you're out of a liquidity trap ?


When prices of products start rising faster
because wage rates are rising faster


So start buying till you see the wage acceleration
No don't pre empt
Don't stop when your rigged up models tell u
Wage acceleration is just around the next quarter

Wait till the accelerations are among us

Co lateral advantage

The wage to household debt ratio needs some quick improvement