QE is not inflationary, so they say. However the gulf between assets and earners have never been wider. How do asset values grow larger than GDP growth in the modern era? The age of the abundance of cheap stuff that distracted The Help is over. If you see it, you’ve caught your tail. Now what? Crickets.
Can you guess what happened in 1972 that lead to the divergence?
I’d seen the 2nd and 3rd graphs before, but the first graph was new to me and is quite significant. So how will they maintain that ongoing crime and keep The Help in their place? Glad you asked…
There is a new weapon in town. ECB has a new weapon in the TPI (Transmission Protection Instrument). ECB’S PRESIDENT LAGARDE: “SOME TPI TERMS WILL STAY UNPUBLISHED.” So basically stealth money printer go brrrrrr, and you can never leave. Raising rates for The Help while continuing to support financial assets at all costs. It is also a defragmentation tool to fight EU exits – Countries will be eligible for TPI ONLY if they comply with EU’s fiscal rules. A-la-cart QE for the southerners because the north doesn’t need to know.
Let’s say there’s some QT going on somewhere (which ultimately means more QE really) + rate hikes. The ol’ petrol to assets and damp blanket to employment. But QE plus rate hikes concurrently? See first graph for the reason.
Figured out that the great reset is code for global communism yet? Misery shared equally amongst The Help.
Defined Benefit, if you want to identify the privileged on the Animal Farm.
Meanwhile Sri Lanka introduces fuel rationing via QR code. Yeah vaccine passports being put to good use.
Nevertheless God is good.
The Lord is my helper, and I will not fear what man shall do unto me. Hebrews 13:6 KJV Bible
Not investment advice, educational / entertainment purposes only.