Geoff Elliott: What about the unwinding of stimulus. What do you think of the Fed has obviously been printing a lot of money effectively, and clearly with the twin of the gas boom and a low US dollar has really helped spark recovery.
Jeff Immelt: We're in kind of an unprecedented territory in terms of the amount of leverage on the US balance sheet, so we've never kind of been where we are today, so whether that drives inflation or where it goes, I don't think anybody knows. I think from a company standpoint, what it just means is that all of us are going to carry more cash. In other words, I think all of us are going to have a safety cushion, as these things get unwound, just to be careful, because I think we are in kind of unprecedented territory.
We clearly don't see inflation today. The capital markets are clearly benign today around the deficit and things like that. There are no Bond vigilantes, or other external factors that are going to change the game. So that's what we watch.
Jeff Immelt: We're in kind of an unprecedented territory in terms of the amount of leverage on the US balance sheet, so we've never kind of been where we are today, so whether that drives inflation or where it goes, I don't think anybody knows. I think from a company standpoint, what it just means is that all of us are going to carry more cash. In other words, I think all of us are going to have a safety cushion, as these things get unwound, just to be careful, because I think we are in kind of unprecedented territory.
We clearly don't see inflation today. The capital markets are clearly benign today around the deficit and things like that. There are no Bond vigilantes, or other external factors that are going to change the game. So that's what we watch.
Source: theaustralian
