“The guaranteed basic income discussion is an important one. I think that conversation is one we should continue to have and think about.”
What’s universal basic income, you ask? Think helicopter money and magic money tree, on steroids.
And with that all discussions about rate hikes, “taperings”, or anything else for that matter is moot, because the only way the conversation about guaranteed basic income – where the Treasury sells unlimited amounts of debt to “fund” UBI, debt which is purchased by the Fed – makes any sense is if the Fed ensures that rates can never again rise. Which is why all those traders panicking about rising yields, or CTAs who are now shorting 10Y yields, and as the following chart from Goldman confirms, they are – just as we said they would once yields rose above 1.10%…]