Loading ...3-7–Rick Ackerman==DEFLATIONARY collapse
Fed Chairman Powell’s every utterance has been the obsessive focus of economists and pundits who make their living taking the central bank’s monetary quackery seriously. Does anyone actually believe that credit stimulus will produce an economy healthy enough to service the trillions of dollars in debt we’ve accumulated desperately trying to keep an asset bubble from deflating? The effort is not only doomed, it is likely to to produce a DEFLATIONARY collapse featuring a strong dollar and crushing real rates of interest. Sound impossible? Not with everyone on the ‘inflation’ side of the bet, it isn’t. Even $10Tr-$20Tr of helicopter money is just a drop in the bucket compared to the deflationary juggernaut represented by global trade in financial derivatives. It is $2 quadrillion in size, every penny of it effectively a short position against the dollar. If you think the short-squeeze run-up in Gamestop shares was crazy, wait till you see the world’s desperate bet on inflation unwind.