BHP $100 Target !, page-119

PMI expansion is like a car, just starting to accelerate. If we use nitrogen (e.g cutting the rate), the acceleration will be much faster for sure for sure, no doubt, but:
* yields will explode, higher future mortgage rate or lower bank NIM, say goodbye to the Fed mandates
* real estate will rather have trouble (see today Real Estate (RE) red sea)
* etc

Gold spike may have told that it's inflation/fundamental economy >> yields, for now ...
But we don't want to see yields (which is much sensitive to change) running much faster >> inflation/fundamental economy, too fast to handle

Slow down mate. Let's just nurture the global PMI acceleration. I believe this is the ultimate goal of ALL. If succeed, I think the outcome will be much better. Just pay higher mortgage higher dividend (if working well of course)? The RE has been running so big anyway, with very long NIRP, not easy to maintain.

Above understanding might give a different view to see what is currently happening. The good thing is, I don't think we are in deflationary cycle, which is much painful and difficult to solve. We are just in pain because the economy is simply too good, LOL

This summer heat issue is not over yet, see the long yields, still very painful. The policy makers just need to come up with good decision to sail along the merely bumpy roads. IMO it's not that difficult to solve current long yields, above issue, but again, only they can decide "which one" and ultimately "when" ? Retailer take the pain of waiting.

IMO