'“There’s this perverse feedback loop in play between what the government is doing and what the Fed’s trying to achieve,” says Vincent Mortier, chief investment officer of French fund manager Amundi
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The Congressional Budget Office projects the government will run a deficit of 5% to 7% of gross domestic product every year for the next decade. For context, from the end of the World War II to the collapse of Lehman Brothers in 2008, the biggest deficit was 5.7% at the end of the double-dip recession of the early 1980s. The longest run of deficits over 5% was three years.'
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The idea that the central bank can skip rate increase because bond yields rose more than expected merits closer scrutiny, October 13, 2023
Context(Global Stagflation)(Inflation out of control) - 1970s-style stagflation .. repeating itself(Global Stagflation)(Inflation out of control) - Inflationary Psychology Has Set In. Dislodging It Won’t Be Easy.(Banking Reform - English/Dutch) '..a truly stable financial and monetary system for the twenty-first century..'