RE: RE: The first earns it, the second enjoys it and the third destroys it
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RE: The first earns it, the second enjoys it and the third destroys it

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1y

sounds like you’re equating compouding in productive businesses with interest on sovereign debt, but those are different engines. Central banks set policy rates to manage inflation and employment, not to cap long run equity cash flows and and reinvested dividends. Private returns can outpace noise for decades even while the state keeps debt stable when growth runs at or above funding costs. Are you saying a persistent equity risk premium cannot exist by design?