Loading ...Money Supply Contracting
This guy gets it and the FED either doesn’t, or is collapsing the economy on purpose. He correctly points out it isn’t so much the interest rate increases, as the QT that is causing the drop in money supply. He also explains why this is not the same as the 70’s as far as the persistence level of the current inflation. This was because of the two year spike in money created from all the pandemic stimulus. It has already ended and dropped back to normal as far as the 12-18 month lag that shows up in inflation. As I have been saying for months Powell and the FED are either the stupidest bastards on the planet or are the evilist ones, because they are purposely driving us into a depression. https://www.investmentwatchblog.com/money-supply-is-officially-contracting-only-happened-four-times-in-150-years-depression-double-digit-unemployment-followed/
I think both points are wrong. Not stupid and not evil…. well not evil for just this brief interlude. I defer to Tom Luango and his explanation. I think he gets it right more than anyone. Main thesis is FED is at war with the ECB. Treasury is aligned with the ECB. FED is on a mission to wreck the Eurodollar market and the globalists and ultimately defend the USD to a point. They understand that the USD can’t remain king of the hill forever and are willing to stand along with other currencies in a reserve role.
But expect a rocky road ahead.
Regarding Collapsing money supply, Tom McClellan also get’s it. It’s finally causing this collapse. Think of it, one of the most indebted economies up against the most rapid increase in interest rates in history…. what could possibly go wrong.
Agree…Luongo’s thesis is playing out
Agree with both comments. A MUCH broader HISTORICAL perspective is in play here.
Also, any focus on M2 driven “depression” overlooks eurodollars and global credit of all sorts. As well as dollar shadow banking (buy now pay later), that escapes M2 tabulations.