'The pace of global recoveries since 1975 has been slower and weaker..' - '..when a central bank’s inflation view becomes a joke..'

'The pace of global recoveries since 1975 has been slower and weaker, consistently evey time, according to the OECD. Recoveries take longer and happen slower. At the same time, periods of crisis are less aggressive albeit more frequent than prior to 1975. Another interesting evidence of the crises and recoveries since 1975 is that almost all economies end the recession period with more debt than before.'

- Daniel Lacalle, The Bubble Of Everything: How A Debt-Driven Economy Creates More Frequent Crises, March 11, 2021



'..Over the past three decades, the monetary management focus shifted to asset prices. Central banks managed rates to ensure ever-rising securities prices, and when they eventually had no further to go with rate cuts resorted to money-printing and liquidity injections directly into the markets. Spurred by the pandemic, their reckless monetary inflation and attendant asset Bubbles became Uncontrollable. Moreover, inflationary dynamics jumped from the asset markets to engulf commodities, producer and consumer prices.'

'It’s never good for credibility when a central bank’s inflation view becomes a joke (even within the bank’s own organization!).

..

The Fed has made a mockery of its overarching responsibility for ensuring monetary stability. And even the heads of the Wall Street firms have begun prodding the Fed to reduce accommodation, increasingly concerned by the inflationary backdrop.

..

..Over the past three decades, the monetary management focus shifted to asset prices. Central banks managed rates to ensure ever-rising securities prices, and when they eventually had no further to go with rate cuts resorted to money-printing and liquidity injections directly into the markets. Spurred by the pandemic, their reckless monetary inflation and attendant asset Bubbles became Uncontrollable. Moreover, inflationary dynamics jumped from the asset markets to engulf commodities, producer and consumer prices.

Policymakers would like to believe the situation is Controllable; they want to believe the system will return to the way it was. But the genie is out of the bottle, and inflationary dynamics will not be conveniently abandoning the real economy and heading back to the comfortable confines of asset prices.

- Doug Noland, Controllable, October 15, 2021



Context

A $5 Trillion Property Bust in China has Huge Implications for Commodities, October 11, 2021

(An economic Ponzi scheme) – Evergrande Moment – ‘China Evergrande is not ‘too big to fail’, says Global Times editor’

('The "Manic-Depressive" Economy) - 'It’s turning into a debacle..'