{"id":53604,"date":"2020-06-11T08:43:45","date_gmt":"2020-06-11T13:43:45","guid":{"rendered":"https:\/\/olduvai.ca\/?p=53604"},"modified":"2020-06-11T08:43:50","modified_gmt":"2020-06-11T13:43:50","slug":"blains-morning-porridge-june-11-2020-the-illusion-wears-thin","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=53604","title":{"rendered":"Blain’s Morning Porridge – June 11 2020: The illusion wears thin"},"content":{"rendered":"\n

Blain’s Morning Porridge – June 11 2020: The illusion wears thin<\/a><\/h3>\n\n\n\n
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\u201cIt is the system that deserves to be blamed. What those who wish to perpetuate the system deserve is another question.\u201d<\/em><\/p>\n\n\n\n

The Fed did exactly what was expected \u2013 nay, demanded! Asset purchase volumes will be maintained while rates will remain near zero for the next 2 years. Hallelujah! The market shrugged aside indications a second virus wave is hitting across parts of the US and Europe\u2026 <\/p>\n\n\n\n

If Fed-Head Jay Powell has said anything else, there would have been a hissy-fit mini-taper-tantrum. The dominant force on markets will remain central banks juicing markets \u2013 and all the entails in terms of distortion. The immediate lesson for investors is \u2013 keep buying! The Fed and the other CBs have got your back. They can\u2019t afford for markets to stumble.<\/p>\n\n\n\n

Problem is\u2026 little the Fed said is likely to change the reality of the coming recession. The downturn might not be as deep or as bad as we originally feared, but whatever nonsense some analysts are spouting in terms of hopes for a V-Shape recovery\u2026 recession is coming. It might be less damaging, and less long-lived than we fear\u2026 But.. <\/strong><\/p>\n\n\n\n

There is a new and growing dimension to this crisis\u2026<\/strong><\/p>\n\n\n\n

The Black Lives Matter demonstrations around the globe highlight the threat of social unrest, and political dislocation. When the virus kicked in, I commented a few times how lockdown frustrations and hot summer nights could be a recipe for riots. But, what\u2019s happened is much more fundamental \u2013 and should be a critical concern for investors in terms of how it changes the political narrative.  <\/p>\n\n\n\n

Unrest is a political issue \u2013 and politics have a seriously underestimated ability to roil markets. <\/p>\n\n\n\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

Blain’s Morning Porridge – June 11 2020: The illusion wears thin \u201cIt is the system that deserves to be blamed. What those who wish to perpetuate the system deserve is another question.\u201d The Fed did exactly what was expected \u2013 nay, demanded! Asset purchase volumes will be maintained while rates will remain near zero for […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[1726,15674,23143,7783,303,1849,538,657],"class_list":["post-53604","post","type-post","status-publish","format-standard","hentry","category-economics","tag-asset-prices","tag-bill-blain","tag-blains-morning-porridge","tag-credit-expansion","tag-fed","tag-financial-markets","tag-money-printing","tag-protests"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/53604","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=53604"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/53604\/revisions"}],"predecessor-version":[{"id":53605,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/53604\/revisions\/53605"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=53604"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=53604"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=53604"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}