So, we should crash and burn from a cold economy and hot inflation simultaneously. Can anyone say “stagflation” loud enough for Powell to hear it? There is nothing the Fed can do that will work here.
We are living in a post-truth society where billions spent on pointless wars are “not a whole lot of money.” But the piper will be paid and the debt will be cleared.
The Milkshake Theory assumes that the dollar will always remain the reserve currency and thus serve as a safe haven. But what happens if the world loses faith in the dollar?
President Joe Biden recently called for a ban on so-called “shrinkflation.” That refers to the practice of manufacturers of food and other products shrinking their portion sizes. Shrinkflation is just a symptom of an underlying problem.
All of this central planning has done wonders for growth in the government sector and for the FIRE economy. The wealthy, with connections to government and Wall Street, have grown wealthier.
You can certainly argue that the economic picture is nothing like the stagflationary years of the 1970s. But the warning signs are clearly there - as evidenced by the services PMI report and other recent economic data.
Even though Powell claimed he couldn’t see the “flation,” every one of those Fed reports was filled with comments by business leaders saying that inflation was strangling them.
Moriarty points out that engaging in meaningless wars has historically led to the bankruptcy of empires, including the United States, and the current trajectory risks global bankruptcy. Gold bugs will benefit, as long as we all stay safe.
Mike Maharrey interviews Saleha Mohsin, a senior correspondent at Bloomberg News and author of the new book "Paper Soldiers: How the Weaponization of the Dollar Changed the World Order."
Nothing was said which indicates the timeline for a change in direction for interest rates has shortened. When it comes to cuts in interest rates, investors stubbornly cling to the notion that “no” means “yes”.
