Bonds as an asset class will always be needed, and not just by insurance companies and pension funds but by aging boomers.
You know those adages about smelling the roses and chasing butterflies? The markets are my butterflies and my roses.
Slow growth and inflation have a tendency to accompany large deficits and increasing debt as a percentage of GDP.
When does money run out of time? The countdown begins when investable assets pose too much risk for too little return; when lenders desert credit markets for other alternatives such as cash or real assets.
Imperceptibly, the developed world's manufacturing base was gradually eroding and being replaced by securitized finance that destroyed itself and nearly its economies in 2008.
Favouring employment versus the financial markets is a decent policy; certainly not beneficial for the currency or the gilt market, but beneficial for the people.
