A.I.M. Users Bulletin Board

[ls7550]

I think the title should be updated because of inflation.....
A.I.M. For A Billion!!!!

UK inflation since the mid 1970's is around a 10-fold increase, so

AIM For a Decamillion

But yes that doesn't include any real gain uplift, so maybe

AIM For a Hectomillion

in reflection of a 5% real rate of return.

But in a era of yield curve control, printing money to buy Treasuries across the board to suppress yields, whilst inducing inflationary spikes (each additional new note devalues all other notes in circulation), and large debts are deflated away. With central banks having bought much of the debt and returning all interest paid to the Treasury, such 'debt' could just be torn up later to also reduce the debt.

Much of the debt is fake. Directed in order that people are more inclined to spend, promoting economic activity and raising the tax take. But where robots can churn out products 24/7 such that supply capacity is greater than demand. If people aren't earning because robots have them unemployed then economic activity will naturally stall.

In the UK debt is now 2 trillion+, but costs just 1% to service (20Bn/year) is largely fixed rate and has repayment (maturities) have been spread out over many decades. Costs much the same now as the service cost back in 2007, where 4% yields on 500Bn of debt = 20Bn/year. However there's been 40% inflation since then so in real terms the debt costs less now than in 2007.

Gold and long dated TIPS should do OK in years when interest rates remain low and inflation spikes. But do poorly in years when real yields are just mildly positive or negative. Stocks/bonds tend to do well when gold performs poorly. Perhaps a era when things move around a lot, but broadly average low rewards. Trading/volatility capture across a diverse range of assets can fill that gap, and AIM targets each of price appreciation, income and volatility capture/benefits.