Originally posted at Capitalstool
Uncle Warren I presume thinks that the printing priesthood will eventually pivot back to the big print.
The simple fact is that in order to control inflation (eventually….somewhere in the distant future ) the Eccles temple acolytes need to create more inflation in the present.
They cannot control inflation now because the cash flow needed to service the interest rate required is simply too great,
The numbers don’t add up.
It would create a hard default situation….to be avoided at all costs.
But if they create enough inflation then cash flow will increase enough so the numbers do add up.
And then they will increase the rate enough to control inflation…and there will be no hard default.
And in the meantime the common shareholders of Oxy will get $3-4 billion of inflationary wealth transfer a year.
So why not be the common shareholder.
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