{"id":61261,"date":"2022-01-03T08:10:22","date_gmt":"2022-01-03T13:10:22","guid":{"rendered":"https:\/\/olduvai.ca\/?p=61261"},"modified":"2022-01-03T08:10:22","modified_gmt":"2022-01-03T13:10:22","slug":"weekly-commentary-2021-year-in-review","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=61261","title":{"rendered":"Weekly Commentary: 2021 Year in Review"},"content":{"rendered":"

Weekly Commentary: 2021 Year in Review<\/a><\/h3>\n
\n
Books will be written chronicling 2021. I\u2019ll boil an extraordinary year\u2019s developments down to a few simple words: \u201cThings Ran Wild\u201d. Covid ran wild. Monetary inflation ran wild. Inflation, in general, ran completely wild. Speculation and asset inflation ran really wild. More insidiously, mal-investment and inequality turned wilder. Extreme weather ran wild. Bucking the trend, confidence in Washington policymaking ran – into a wall.<\/div>\n<\/div>\n
\nCovid running wild. With the hope for vaccines and a waning pandemic, few anticipated the tragedy of more than 475,000 Covid deaths (exceeding 2020). As the year comes to its conclusion, we are shocked by daily new cases exceeding 500,000 \u2013 and two million for the week. Globally, daily cases exceed two million.<\/p>\n

Inflation running wild. CPI surged 6.8% y-o-y in November, the strongest consumer price inflation since June 1982. Core PCE, the Fed\u2019s favored inflation gauge, rose above 6% for the first time since 1983. Surging food and energy prices, in particular, punish those who can least afford it.<\/p>\n

Monetary inflation running wild. Federal Reserve Credit expanded $1.391 TN over the past year, or 19%, to a record $8.742 TN. The Fed\u2019s balance sheet inflated an astonishing $5.015 TN, or 135%, in the 120 weeks since QE was restarted in September 2019. Federal Reserve Assets have now inflated 10-fold since the mortgage finance Bubble collapse.<\/p>\n

M2 \u201cmoney\u201d supply inflated another $2.478 TN (12 months through November) to a record $21.437 TN \u2013 with egregious two-year growth of $6.185 TN, or 40.6%. Bank Deposits surged $1.957 TN over the past year (12.1%), with two-year growth of $4.812 TN (36%). Money Fund Assets rose another $408 billion y-o-y, or 9.5%, to $4.70 TN. The myth that QE effects remain well contained within Treasury and securities markets has been debunked.<\/p>\n

In the seven pandemic quarters through Q3 2021, Non-Financial Debt surged $9.183 TN, or 16.8%, in history\u2019s greatest Credit expansion.
\n\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Weekly Commentary: 2021 Year in Review Books will be written chronicling 2021. I\u2019ll boil an extraordinary year\u2019s developments down to a few simple words: \u201cThings Ran Wild\u201d. Covid ran wild. Monetary inflation ran wild. Inflation, in general, ran completely wild. Speculation and asset inflation ran really wild. More insidiously, mal-investment and inequality turned wilder. Extreme […]<\/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":[21032,124,7756,7783,16861,303,538,607,13351,3650],"class_list":["post-61261","post","type-post","status-publish","format-standard","hentry","category-economics","tag-21032","tag-central-banks","tag-credit-bubble-bulletin","tag-credit-expansion","tag-doug-noland","tag-fed","tag-money-printing","tag-pandemic","tag-price-inflation","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/61261","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=61261"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/61261\/revisions"}],"predecessor-version":[{"id":61262,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/61261\/revisions\/61262"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=61261"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=61261"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=61261"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}