Loading ...THE FAT LADY HASN’T SUNG YET
But as I have explained before, the debt explosion is not finished until the fat lady sings. And sadly a lot will happen before she finally sings.
Because like most economic eras, this one will finish with a number of spectacular events, many of which will take place concurrently.
Only a few months ago, Powell and Lagarde were singing from the same hymn sheet about transitory inflation.
But as these Central Bank chiefs prove consistently, they are always wrong. For years they are trying to get inflation to two percent and then, all of a sudden, it is approaching 10% and they don’t understand what has hit them.
They haven’t even understood that Keynesianism was dead before it started.
Even a monkey would understand that if you print $10s of trillions and keep interest rates at zero or negative for years, the end result will be spectacular inflation.
Initially we saw unprecedented asset inflation in stocks, bonds and property but it was always clear that the exponential increase in money supply would eventually reach consumer prices.
THE PERFECT STORM
What is coming next is the inevitable perfect storm.
A perfect storm means that everything that can go wrong will go wrong. And that is not just obvious failures in many parts of society but also totally unforeseen consequences.
Let’s just look at some of the obvious events that will take place in the next few years: