Monetary disorder evolved to become deeply systemic. It was on full display this week, especially Friday. The mania and the frog in the pot syndrome. Instability has been percolating (fragilities building) for so long that we’re numb to it all. In the markets, it’s more than comfortably – it has become exuberantly, manically numb.
We’ve gone and really done it this time.
Unfortunately, there will be no growing our way out of today’s pickle. In theory, economies can inflate away over-indebtedness. In reality, efforts to inflate out of Bubbles ensure only greater and more destructive Bubble excess. And it is fundamental to my analysis that prolonging “Terminal Phase Excess” courts disaster.