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24 sats \ 0 replies \ @TomK OP 18 Sep \ on: Fed: The Puppy Chasing Its Destiny econ
The now officially launched cycle of interest rate cuts by the Federal Reserve, flanked by its subordinate central banks in the western hemisphere, could, if everything goes very badly, end in a major fireworks display. This would happen precisely when the BRICS countries, which are clearly forming an energy and resource-strong political bloc, generate pricing power and then encounter a sick fiat money competition that has to keep printing money against its own decline. What this means for inflation in the future, commodity prices and supply chains, we cannot even guess now. Perhaps we don't even want to!