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Keeping it Simple | Ep. 8: Inflation Nerd Death Match!

Keeping it Simple with Simplify Asset Management

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Is It Possible to Expect Negative Nominal Rates?

There is a reason why in europe and japan, the entire financial systemde ands safe and liquid instruments that outright cost them money. It's because the liquidity premium has gotten so high, and therefore the inflation growth recovery potential so low. So if the c p to rets to positive, that wouldn't take ther their bretall positive. But i don't think it changes anything material you oivt back the liquidity premium. A dirted curve, absolutely. And its nige ba lot about safe ascet shortage, you know, collateral scarcity. Until something happens in that, in that sense, we're kind of stock. There's really no way around it.

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