The biggest problem is that we're looking at stagflation.
Stagflation at first looks like everyone' doing well because there's lots of money going around, but the problem is that there's lots of money going around. Look at the PPI and producers have been eating more and more price increases without passing them on fully, eventually everyone is going to realize that inflation is here to stay for a while, and then prices are going to rise and wages are going to rise, and the beast of inflation will be unleashed.
That being said, main street has been stagnating for 20 years. I think it'll be Wall Street that gets the real hit from the upcoming pain. Lots of zombie companies that look good for GDP but will die when they actually have to produce a good or service of value to pay off the debt service that's risen 300%.
The fed is pretending that it's doing an unprecedented amount to deal with this, but they aren't. Volker did an unprecedented amount. It hurt, but he brought inflation under control by causing big pain. Powell doesn't have the balls to fight inflation. He's going to keep nudging the needle until something breaks then he'll retreat right back into QE and zero or subzero interest rates because the people holding his leash will force him to.
Stagflation at first looks like everyone' doing well because there's lots of money going around, but the problem is that there's lots of money going around. Look at the PPI and producers have been eating more and more price increases without passing them on fully, eventually everyone is going to realize that inflation is here to stay for a while, and then prices are going to rise and wages are going to rise, and the beast of inflation will be unleashed.
That being said, main street has been stagnating for 20 years. I think it'll be Wall Street that gets the real hit from the upcoming pain. Lots of zombie companies that look good for GDP but will die when they actually have to produce a good or service of value to pay off the debt service that's risen 300%.
The fed is pretending that it's doing an unprecedented amount to deal with this, but they aren't. Volker did an unprecedented amount. It hurt, but he brought inflation under control by causing big pain. Powell doesn't have the balls to fight inflation. He's going to keep nudging the needle until something breaks then he'll retreat right back into QE and zero or subzero interest rates because the people holding his leash will force him to.
I mean... The dumpster fire is right there. These conditions are the sort of thing that ends empires consistently throughout history. Having one thing going for you isn't enough if so many massive problems exist.
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The way the hegemony works, there'll be no shelter. The end of previous eras had global consequences. We're already seeing all the other dominos falling.
The most important thing is to understand that you can't save the world, so save yourself instead. During the fall of Rome, the people of Rome didn't die, they just became something different and had to find a way to survive and thrive in a new era.
The most important thing is to understand that you can't save the world, so save yourself instead. During the fall of Rome, the people of Rome didn't die, they just became something different and had to find a way to survive and thrive in a new era.