As my fellow Substack commentator Sage Hana said so accurately, “It's a mixed up, muddled up shook up world.”
Nowhere is the truth of that line from The Kinks 1970 hit “Lola” more evident than in financial markets, which, if you believe Goldman Sachs, are tight to the point of causing recession and stagflation.
As the following chart from Goldman Sachs, which compiles the most widely used financial conditions indexes, shows, financial conditions are at the tightest in two years, driven by soaring energy prices, sliding stocks and the market fallout from the Ukraine-Russia conflict. In fact, if one excludes the March 2020 chaos, the last time financial conditions were this tight, the Fed Funds rate was about to hit the past cycle high of 2.50%.
Get that? All the pandemic era “quantitative easing” and other monetary stimulus have led to the tightest financial conditions since 2019. Loose money policies have produced tight financial markets.
And Goldman Sachs is serious. They really believe that inflation is something other than a monetary phenomenon (when that's all it ever is).
No wonder the world is screwed up, when the “experts” produce irrational malarkey such as this.
Don't they call the start of a recession after we're already past it? I think we entered that territory months ago when the inflation started nailing us and we're just really feeling it now.
Not to get political but what's the Democrats play here going into midterms? Winning against covid doesn't save them. "Banning" Russian oil punishes the working class. Everything Biden and Co is doing seems to be foot on the gas and screw the election because why not.
I guess my point there is... are we even in election season because it doesn't feel like it.
There is a school of thought that the realities of fiat money printing and other global banking chicanery were the real "cause" of the pandemic.
The sustainability of the current system is no longer tenable.
Max Keiser has been beating this drum for a long while, too.
Dr. Mike Yeadon laid this out pretty well, borrowing heavily on Catherine Austin-Fitts.
It really is a mixed up muddled up shook up world. Feels bleak, Peter. Feels dark.