Episode 2

Barron’s, July 29, 2019, by Randall Forsyth

https://www.barrons.com/articles/the-feds-coming-rate-cut-could-be-a-blunder-51564187667

Do the opposite of the Great Depression. Instead of letting banks fail, bail out Wall Street. Instead of trying to balance the budget we ran mega-deficits. Instead of letting money supply shrink, Fed slashed interest rates to zero quintupled the size of its balance sheet.

Deflation is the real enemy. Ask Japan. Strong yen hurt them. Trump will do what he can to drive dollar down.

Barron’s, July 29, 2019, by Jack Hough

https://www.barrons.com/articles/why-some-investors-are-buying-bonds-that-lose-money-51564179385

Greece missed IMF deadline in 2015, now below US 10 year yields. Switzerland’s 50-year yield went negative, it and Denmark all maturities below zero.

Poor predictor of trouble for stocks. Japan and Germany in 2016. Both stock markets up modestly. US hit 1.37%, our market up huge.