Are assets overvalued? what next? Question to Warren Buffet and Charlie M @ BRK AGM

Warren - "Zero rates. Interest rates, basically, are to the value of assets, what gravity is to matter. If I could reduce gravity, it’s pull by about 80%, I’d be in the Tokyo Olympics jumping".

Charlie - "I think the modern monetary theorists are more confident they ought to be. I don’t think we, any of us know what’s going to happen with this stuff. I do think there’s a good chance that this extreme conduct is more feasible than everybody thought. But I do know if you keep just doing it without any limit, it will end in disaster."

Real Wealth - Energy is constant there is no change since the beginning of the universe - Scientific law (Thermodynamics). Any perceived increase in real wealth is financed by some other form of energy (e.g climate change).

Imaginary Wealth - Interest rates exist only in our imagination. Imagination is unlimited.

Where will it end? At the checkout counter, we trade imagination for real stuff. Inflation is akin to "Kick" in the movie Inception that breaks the dream (Zero interest rates).

Unlike the movie, MMT consequences are unknown.

Views are personal and certainly not an investment advice.

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