The lockdown disaster with its liquidity pump was followed by the sharpest rise in interest rates ever, with central bankers everywhere trying to catch the inflationary devil that they had unleashed in conjunction with their spending-happy politicians.

Now the coordinated turnaround downwards. This is all taking place against the geopolitical backdrop of the looming bankruptcy of states such as the UK, which are deeply involved in financing the chaotic state of Ukraine (and are hoping for reparation payments in the event of Russia's defeat) and which debt is accelerating.

Fiscal policy here, as in the USA and the EU, has slipped into a state of uncontrollable acceleration if we do not want to embark on the difficult path of credit deflation with all its consequences. Hard assets such as gold and bitcoin indicate what is to come: massive debasement of money to fill the gigantic gaps in state budgets that are more and more visible to the public now. When inflation returns (and it will return, wait for the US elections and its aftermath) it will be interesting to see the reaction of the central planners in the central banks: will interest rates shoot up again erratically during a recession and looming state bancruptcies?