An issue I seldom see addressed is that everyone wants a high rate or return on investment, Stocks must go up 8% a year, houses must go up 8% a year, banks must give 5% and so on. At the same time we demand ZERO inflation, and the Fed obliges by turning the screws on inflation.
The way I see it this has resulted in a massive pressure cooker economy with bubbles blowing left right and center. Now the whole thing is starting to look more like a soufflé though.
My question to those wiser than I… How can you maintain huge investment growth and zero inflation?
