The great debt crash

[errolanderson]

Strap-in . . . .

Failed Keynes economics and out-dated central bank policy built this debt monster. Now central banks feel they can hike rates (at about the worst time) all in-the-name of fighting inflation, which has already peaked. Inflation can control itself in an open market without help of central bank manipulation.

This is setting-the-stage for the ‘big debt crash’ (next 2 to 3 years) with sustained asset devaluation. Inflation you say? That may be the least of the market’s worries.

[ajl]

Article on lumber futures prices said they are now coming down as fast as they went up. Not seeing relief at the pumps yet though.

[jazz]

errol, I think the experiment in MMT is the culprit.

That experiment blew itself up in a mere 2 yrs. At least Keynesian theory lasted 50 yrs or so.

[biglentil]

Surprise surprise stagflation

[beaverdam]

Surprise surprise stagflation

[ATTACH]10615[/ATTACH]

Instead of "The Nasty Man", replace those words with "Justin Trudeau" !

[Austrian Economics]

Commodity prices went up for a whole host on non-monetary reasons: Covid lockdowns and the supply chain disruptions that went along with them, green energy mandates that block infrastructure projects, and now the war in the Ukraine.

Now that some of these bottlenecks are easing, commodity prices will fall to some extent. However, the war in the Ukraine looks to be setting in for the long haul and green energy boondoggles show no sign of letting up. That will keep upward pressure on prices.

Raising interest rates does nothing to fix any of this. In fact, it will make things worse by forcing some suppliers into bankruptcy or out of the market due to higher financing costs.

[errolanderson]

Great debt crash coming-in-hot . . . . Real estate is a bulls-eye.

Apparently, 20 percent of U.S. home listings have dropped their price over past month. Inventories have jumped 10 percent since March. Mortgage refinancing has tanked 75 percent over a year ago. Lumber prices remain in-a-skid.

[furrowtickler]

Like anything, high commodity prices are absolutely meaningless unless you have something to sell .
Gold could go to $10,000 per ounce or oil to $200, if you have none it just costs you money in real terms

[furrowtickler]

I could have a 50 million dollar liberty ticket , does that make me an instant millionaire????

About the same chances

[errolanderson]

'Inflation' is now being hit head-on by the 'Great Debt Crisis'. Asset casualties beginning to drop on the sidelines. Layoffs apt to pick up into next quarter.

Timing of interest rate hikes couldn't be worse. Central bankers and academia have been bred to preach Keynes economics.

My apologies for sounding pissed, I am . . . .