{"id":59754,"date":"2021-10-09T06:59:32","date_gmt":"2021-10-09T11:59:32","guid":{"rendered":"https:\/\/olduvai.ca\/?p=59754"},"modified":"2021-10-09T06:59:32","modified_gmt":"2021-10-09T11:59:32","slug":"lifes-a-beach-until-the-tsunami-hits-four-waves-nobody-cares-about-yet","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=59754","title":{"rendered":"Life’s a Beach Until the Tsunami Hits: Four Waves Nobody Cares About–Yet"},"content":{"rendered":"

Life’s a Beach Until the Tsunami Hits: Four Waves Nobody Cares About–Yet<\/a><\/h3>\n

Four monster waves are about to crash onto the Fed’s beach party and sweep away the unwary revelers.<\/i><\/p>\n

Hey, is the water in the bay receding? Never mind, free drinks are on the Federal Reserve, so party on, life’s a beach, asset bubbles will never pop, we’re safe. Of course you are.<\/b>\u00a0The Fed is all-powerful and would never let a rogue wave turn all its precious phantom wealth into broken detritus.<\/p>\n

The water is fast receding and a wave is visible if you care to look, but nobody cares to look.<\/b>\u00a0Why bother? The Fed is invincible, that’s all you need to know to mint another fortune.<\/p>\n

Just to keep life interesting, let’s look anyway.<\/b>\u00a0Gordon Long and I discuss\u00a0four monster waves that are about to crash onto the Fed’s beach party<\/a>\u00a0and sweep away the unwary revelers:<\/p>\n

1. Declining liquidity<\/b>: while everyone is focused on the Fed’s ceaselessly repeated reassurance that the liquidity spigot will never be closed, never ever ever, so party on, asset bubbles will never pop, never ever ever, other central banks have already started reducing global liquidity while domestically, the Treasury General Account (TGA) is soaking up liquidity to fund the federal government’s monumental deficit spending.<\/p>\n

2. Declining global growth<\/b>: long before the pandemic swept ashore in 2020, global growth was faltering: the business cycle had not been abolished, despite Fed assurances that growth and asset bubbles will continue expanding until they reach Alpha Centuri and beyond (Dow one trillion, yowza baby!), growth by any conventional measure (PMI, ISM, industrial production, global trade flows, etc.) had stagnated or rolled over.<\/p>\n

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

Life’s a Beach Until the Tsunami Hits: Four Waves Nobody Cares About–Yet Four monster waves are about to crash onto the Fed’s beach party and sweep away the unwary revelers. Hey, is the water in the bay receding? Never mind, free drinks are on the Federal Reserve, so party on, life’s a beach, asset bubbles […]<\/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":[24078,195,303,391,534,587,3237,3650],"class_list":["post-59754","post","type-post","status-publish","format-standard","hentry","category-economics","tag-charles-hugh-smith-2","tag-debt","tag-fed","tag-growth","tag-monetary-policy","tag-of-two-minds","tag-supply-chains","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/59754","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=59754"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/59754\/revisions"}],"predecessor-version":[{"id":59755,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/59754\/revisions\/59755"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=59754"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=59754"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=59754"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}