Money supply economists argue inflation is nailed on, even if Central Banks and Governments taper QE and hold back further fiscal spending binges. But the consequences of the last 12 years of monetary experimentation, the massive inflation in financial asset prices, the changed investment environment, and rising inequality mean the coming crisis really will be different this time. Maybe it’s not inflation we should fear, but its much more evil and thuggish sibling – Stagflation.
Nothing to worry about… except Pandemic, Bonds, Inflation or Deflation, Record Container Prices and Geopolitics? Is there any chance of compromise and a deal on the US infrastructure package everyone agrees is necessary – or will it sink into the partisan swamp? And Cathie Wood talks up her investment strategies – but what’s the substance behind the leading Zeitgeist Investor?
Forget the noise from crashing crypto – the big issue for markets is cutting through the buzz of contradictions to perceive the real picture presented by the threats of: inflation, taper tantrum and price sustainability. This is going to be an “interesting” summer.. (If it ever stops raining…)
Across the Occidental Economy there seems a trend towards political failure as polarization, sleaze and opportunism takes hold, even as electorates suffer from increasing inequality and declining prospects. As the threat of post-pandemic inflation rises, the ingredients are all there for further instability and labour strife. It’s all happening as the geo-political spheres of influence between China and the West are being redrawn.
Blain’s Morning Porridge – Aug 25 2020: Economy “In Irons” “ There are three ways to make a living on…