We’ve gone and really done it this time.
Doug Noland
The Warsh Fed
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.
Gradually Transitioning to Suddenly
How does one go broke? Well, it’s famously stated as “gradually then suddenly”. Suddenly is feeling increasingly imminent.