Sitting Ducks: Paycheck, Property, Pension

Mish introduces a new term, NIRP, negative interest rate policy, in his ongoing explication of the state of affairs.  I've noted here before the next 40 years will be bad for anyone depending on a paycheck, property or pensions.  So does he:

In their inane attempt to prevent consumer price deflation, the world's central banks have spawned massive asset bubbles in equities, junk bonds, and housing.
When those bubbles burst, they will spawn the extremely destructive asset deflation that central bankers ought to fear, but never do because central bankers never see the bubbles they create until they burst wide open.

The last forty years the hegemon helped their friends and punished workers, with inflationary policies.  There was no rational limit to how much asset-less backed credit could be lent.  That is bad enough, but it was lent at interest, even worse.  The result is a false economy, that is coming down, and the powers that be have no control over the freefall.

Due to credit deflation, as the powers that be come after your pay, pension and property, as you extend credit to customers the longer it takes for you to be paid, the harder the currency in which you are paid. Your accounts receivable are denominated in so many small amounts, they are not worth stealing plus the plan is to catch your money in the form of taxes on your profits.  But the laws that allow big biz to avoid paying taxes work for the self-employed too.

Best be self-employed, renting.  Get married if you are young, have kids, for in about 30 years there will be some great opportunities in real estate.  In the meantime small businesses will be the most pleasant place to be.

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