Courtesy of EconMatters
We delve into market theory in this video, mainly focusing on the Bond Market regarding whether in theory Bond Prices can rise year after year pushing yields lower each year for infinity. We point to the necessary components for pulling this idea off, and what separates Japan and China from the US and Europe in this regard, and what is the likely match or catalyst that blows this whole monetary experiment up. We think it is some form of inflation, but it could be some other exogenous event outside the financial system, or even debt levels themselves. But we don`t think the current finance model employed by central bankers is sustainable forever.
