“If we [Saudi Arabia] don’t take any reform measures, and if the global economy stays the same, then we’re doomed to bankruptcy in three to four years...”
Paul A. Volcker, who will forever be etched in the history books for leading the Fed's brute-force campaign to subdue inflation in the early ’80s, has died on Sunday in New York. He was 92.
The new reality raises the possibility that large global firms may turn their ecosystems into their own spheres of influence, a dynamic that could matter for the FAANMGs and BATs of the world.
Gold is a particularly good diversifier for investors with long term investment horizon... especially if conversations around MMT become more widespread...
...the one thing you should not dismiss, and cannot make an excuse for, is the massive deviation between the market and corporate profits after tax. The only other time in history the difference was this great was in 1999...
"One common pushback to our forecast is that government data paint a bleak picture of corporate profitability and S&P 500 profits may 'catch down'." - David Kostin
Though different from the longer-term QE operations the Fed actioned between 2009–2014 that inflated stock, government and corporate bond prices, the result is the same. An artificial stock market rally. And more debt...
“We’re trying to get a little bit ahead. You need to be mindful of the tools you have, the ground you’re fighting over, and, thirdly, who you’re fighting against.”
Economics is 50% math and 50% psychology. The math says we are in the middle of a crash. The psychological orientation has been on the opposite end of spectrum, but is now slowly moving to meet with reality.
