As long as borrowing stress remains elevated, many asset prices are likely to remain choppy.
This is why the Fed is ending balance sheet reduction, but simply ending it is not necessarily sufficient....
I remember all the reading and studying after 2008 and following everything Ron Paul said. Now, Paul was not necessarily wrong about anything but this fiat experiment/era has proven WAY more resilient than us nay sayers thought.
If you look at it objectively, Powell and the other Chairs have actually done a great job with the fiscal shit sandwich they were dealt.
That being said, math is math and increasing debt seems to be unsustainable. The question is, can they pull off inflating of debt, removing themselves slowly from USD dominance, and re shore manufacturing to balance out import/exports?
The answer is, yes and we are seeing that shift live. However, it is a patient in ICU that is one false move or slip up in dosage away from calamity. I could be wrong again like I was from 2008 to 2025 and it does collapse but at this point, I’m not betting against “them” anymore.
If you look at it objectively, Powell and the other Chairs have actually done a great job with the fiscal shit sandwich they were dealt.
That being said, math is math and increasing debt seems to be unsustainable. The question is, can they pull off inflating of debt, removing themselves slowly from USD dominance, and re shore manufacturing to balance out import/exports?
The answer is, yes and we are seeing that shift live. However, it is a patient in ICU that is one false move or slip up in dosage away from calamity. I could be wrong again like I was from 2008 to 2025 and it does collapse but at this point, I’m not betting against “them” anymore.
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