FAST FIVE: "I've Never, Ever, Ever Seen Anything Like This Before"
Now, however, with fears that helicopter money will unleash a tsunami of so much debt not even the Fed will be able to contain it resulting in hyperinflation, everything is in flux, especially when it comes to triangulating pricing on the all important 10Y and 30Y Treasury.
“That would be detrimental to financial conditions and to the ability for the stimulus to feed through to the economy.
But the biggest fear – one we have warned about since 2009 – is that helicopter money, which was always the inevitable outcome of QE, will lead to hyperinflation, and the collapse of both the US Dollar, and the fiat system, of which it is the reserve currency.
“Will government bonds play the same role in your portfolio going forward as they have in the past?” he said.
Ultimately, as Bloomberg concludes, investors will have to find their bearings “in a crisis without recent historical parallel.” “It's very hard to look at this in a historical context and then apply an investment framework around it,” said BlackRock's Thiel.