But the bottom line is that what began as ‘monetary’ inflation as usual, has mutated outside of the monetary and into the real world, which the Fed will find not so friendly a place..
Retail was a bloody mess! But revenue looked pretty good … considering! So, what was all the red about, and why all the screaming on the stock exchange?
So far, the answer seems to be “confidence”. All central bankers and politicians are on a single mission to reassure markets that they have a plan to get this under control.
So for this week, understand first that we are about to experience the most serious energy supply crunch since 1973 and the economic and financial impacts are almost incalculable.
In recent testimony before the British Parliament, BoE governor Bailey admitted he felt “helpless” in the face of what has become runaway inflation. “It’s a very, very difficult place for us to be in."
