Everything That’s Wrong With Everything
“Is the economy improving or stagnating? Are businesses hiring or firing? Is the stock market a buy or a sell? Will monetary inflation prevail over debt deflation?
Quite honestly, we don’t know the answers to these questions. Nonetheless, we have some ideas on what we think the answers should be. More important than what we think, however, is what’s going on…and how it’s making thoughtful ruminations on markets and political economies such a muddled mess…
“We have Monetary Anarchy running riot, where the elastic band between the real economy and the current liquidity-fuelled markets is stretched further and further beyond credulity,” noted Bob Janjuah, head of tactical asset allocation at Nomura, earlier this week.
No doubt, things are going haywire. Just look around. Bubbles are inflating nearly everywhere. Stocks, oil, food, copper…you name it, all are going up. In fact, two days ago we paid $4.27 per gallon for gas. Yet, at the same time, the actual economy’s hardly improving.
Like Janjuah, we think monetary policy has something to do with it.”
Via Alt Market