Blackbeard Research: Misunderstood Dynamics Of Negative Yields – Investment Watch
Money standardizes the value of currency. If the supply of currency grows at a rate which exceeds the growth of aggregate economic contributions, the value of economic contributions is hence diluted. That may sound backwards, so think of it in terms of an annual futures curve: If one unit of spot labor is $100, and one unit of 3-year future labor is $300, the spot labor is worth less (ignoring present value calculations). However, very few of us have the option to defer labor 3 years into the future, hence we complete labor at present compensation, in effect “selling the spot, buying the fu...
Source: investmentwatchblog.com