Sumary of Nothing Is Real: A Visual Journey Through Market Absurdity:
- com,When it comes to modern markets, risk assets and the now normalized yet twisted tango of fiscal and monetary policy gone wild, it’s safe (rather than sensational) to simply confess that nothing is real.
- an “official” YoY CPI (inflation) growth rate of 5.4%, and…an S&P reaching all-time highs above 4000,…despite negative annual GDP rates, and… consumer sentiment tanking,… it’s likely they’d ask me to return my diplomas.
- Because everything I (and all the rest of us) had been taught long ago was that rising risk assets reflect healthy economic growth, vigorous natural demand and a robust confidence in continued productivity and hence free-market price discovery.
- Angry crowds, however, typically have no time for hard policy facts, economic history or founding father ideals;
- From where I sit in terms of both history and economics (at least until these subjects are equally “canceled” from the modern curriculum), falling GDP as indicated above effects all our lives far more than falling statues or controversial children’s books.
- But as we’ve written so many times, the powers-that-be are clever little foxes, and even crashing GDP and skyrocketing debt, which are objectively time-proven cancers for society, can be a boon for their false narrative of governmental or central bank “guidance,” which is nothing more than increasing social control hiding behind a Covid mask.