Finance & Fury Podcast

Welcome to Finance and Fury We live through transformational times – new environment for finance and investing   We are fast reaching the limits of monetary printing - markets are still trying to work out how to price that in Past model – print money Get GDP growth through aggregate demand increase – mainly consumption Therefore – due to velocity of money (turnover) – get multiplier effect – more times money changes hands the bigger the effect = $1 might lead to $3.2 Trouble is that turns out inflation is mostly driven by behaviours/psychological phenomenon GDP growth, inflation, productivity are all missing in action despite 9 years of declining rates and 6 years of monetary doping and financial engineering the world over. If you increase money supply – money needs to go somewhere – sometimes through existing off investment managers or pension funds or new bonds issued from the bank RBA will give CBA $1bn of newly printed money – in return gets CBA Bond to the value of $1bn with a coupon Bank uses n