"Mr Bernanke [and now his successor at the Fed, Janet Yellen] is wilfully trying to debase the Dollar. He will succeed. His colleagues at the ECB purport to be against such measures. This will not last long for they, too, will resort to coin-clipping. They too will fail. Today is Greece and Ireland. Tomorrow is Spain. Next month is Britain, France and a host of others. The following month is China, Japan, America and so forth. It may take years but the whole culture of credit and debt will fail. This is reality. We just do not know how or when."
"Falling prices or price deflation are not the cause of economic and financial crises, but their consequences – and at the same time, their cure."
"The most important thing to remember is that inflation is not an act of God, that inflation is not a catastrophe of the elements or a disease that comes like the plague. Inflation is a policy."
- Question: what happens to bond prices when interest rates rise?
- Second question: what happens to the stock market when a 30-year bull run in bonds turns into a bear market?
- Third question: what is the next likely move in UK interest rates? Take your time.