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@ David Wrong
2025-06-08 18:25:52
https://www.zerohedge.com/markets/hartnett-existential-question-ai-inflationary-or-deflationary
Paging Dr. nostr:nprofile1qqsg86qcm7lve6jkkr64z4mt8lfe57jsu8vpty6r2qpk37sgtnxevjcpzdmhxw309akx7cmpd35x7um58g6rsd3eqy28wumn8ghj7ct9va5hxtn4w3ux7tn0dejsgxtdrz
"AI = bullish bonds if... U-rate rises allowing productivity (trend = 1.5%) up, unit labor costs down (trend), and inflation falls
AI = bearish if... AI causes equity bubble (= higher yields), higher oil prices given energy needs, forces governments to combat AI unemployment via higher deficits/Fed to support deficits via QE/YCC (US dollar negative); most bond investors believe best to navigate via yield curve steepeners"