4 Comments
Jul 31, 2022·edited Jul 31, 2022

i often am not sure if the outcome will be a deflationary or hyperinflationary crisis. perhaps many years of unchecked inflation followed by a hammer Volker-type blow. That would also break the numerator though - real gdp growth so debt may still be elevated. I do not know if a crisis is inflationary or deflationary . Traditionally, war has been inflationary. Philip Fisher always wrote never sell on a war scare as war is inflationary. However does that apply to a nuclear war? or an asteroid hitting the planet?

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Which is more important, FOMC rates or Fed assets? If price inflation is resulting from the flood of money from QE, then isn't the better solution selling off the assets now? And why is the Fed still paying interest in reserves?

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CASH hasn’t been trash as Ray Dalio likes publicly push. With sit’n becoming crystal clear FED QT process is draining cash away from system when folks are looking for cash to survive basics of life, it destroys not only trust in judgement of so called experts ( that generate untold 100s of millions of fees for being tight or wrong), it systematically destroys trust in institutions to relieve citizens of their distraught. Well done piece. Disheartening nonetheless. Lots more pain in the way for the common folks.

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