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No Escape From ‘Flattening Vortex’ As Long As ‘Resistance To Redistributive Forces’ Persists, Deutsche’s Kocic Warns
The yield curve has been caught in a "flattening vortex" for the better part of a decade and the only way out is non-Ricardian fiscal stimulus.
That's the message from Deutsche Bank's Aleksandar Kocic, as conveyed in an October 28 email to clients seen by Heisenberg Report.
As documented here earlier this month (and again last week in the context of the exploding budget deficit), the Trump administration's tax cuts have run into a classic Ricardian equivalence problem. Have a look:
Through
Yah just can’t concentrate the wealth of nations into the hands of a few pricks — it’s just not a good idea — and only moronic crook-like people can believe that it results in anything good, except for the only possibility which is to make wealthy people richer and poor people poorer. The GOP/trump tax cuts and gangster approach to economics as a distributive force is based on a crayon scrawl by a 3rd grade bully with a super low IQ!
Also see: Schwarzschild showed that any mass could become a black hole if that mass were compressed into a sufficiently small sphere–a sphere with a radius R, which we now call the Schwarzschild radius. To calculate the Schwarzschild radius of any object–a planet, a galaxy, even an apple–all you need to know is the mass to be compressed.
https://www.pbs.org/wgbh/nova/article/the-schwarzschild-radius-natures-breaking-point/