Who would have thought that inflation, defined as an increase in prices, is creatively described using countless other words? It is as if monetary policymakers do not want to call a black cat black because it clashes with their agenda of tightening in a bust, even if that means putting most of the population in the poor house. Fiction and invention are the fabric of life, so let’s look at how policymakers resort to creative...
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Central banks tightening in a bust could worsen the economic recession and trigger depression. Central bank monetary policy was intended to even out the boom, bust economic cycle. So during a recession, central banks would ease liquidity conditions providing a safety net to cushion an economy in free fall. US GDP has fallen for two consecutive quarters – 1.6% during the first quarter of 2022 and 0.6% the next. Two consecutive...
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The escalating war in Europe could be the most significant concern for investors in the coming weeks and months. It is the world order cycle that has got me worried. The First anniversary of the Russian invasion of Ukraine approaches, which has morphed into the worst armed conflict in Europe since WW11 as soldiers fight in bitter freezing conditions for every street, every building, and every staircase in armed and hand-to-hand...
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Has synchronizing the clocks become the undeclared policy of the second Dark Ages? The second hand of the Doomsday Clock and the Debt Clock are moving in tandem toward a catalytic event, an implosion. The Doomsday Clock, a gauge created by heavyweight intellects, atomic scientists, academics, and intellectuals has been ticking for 75 years. January 24, 2022, the clock was set at 90 seconds until midnight — the closest to the hour it...
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What is the state of post-pandemic air travel? Policy reaction to the pandemic, which entailed lockdowns and only allowing people out to buy their necessities had a devastating impact on many industries. However, some industries were worse impacted than others. Hospitality and air travel experienced the worst downturn in their history. The aviation industry, as a whole, suffered an estimated $370 billion loss in global revenue...
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What will be the fallout in 2023 with more than 13 trillion USD of wealth vanishing from investment portfolios in 2022 and when central banks abruptly terminate an emergency or an accommodative monetary policy, which has been more than a decade-long pillar of support? When the structural pillar of a building is removed, the building crashes. Fed chair Powell knew that terminating more than a decade of accommodative monetary policy in...
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