Paul the Poke

Ecclesiastes 8:6 For there is a right time and procedure to every purpose, though a man’s misery weighs heavily upon him.

In the Business World, Love does not make the World go round, it is LIQUIDITY that makes the world go round. Without liquidity, the Business World slows. The quicker it is withdrawn, the quicker we head into Recession.

Between March 2020 and March 2022, the Treasury and The Federal Reserve added $10 Trillion. What do you think is going to happen? Do you think Inflation may appear? Well now the “Powers to be” are removing Liquidity at a startling rate.

Places like Sri Lanka, and Lebanon are encountering civil disruption because food and fuel cannot be purchased. Even the Swiss National Bank has received a cash infusion from the FED.

The Inverted Yield is rivaling Paul Volcker’s era and the Fed is not through yet. The cost of Capital has doubled or tripled.

I believe the Economy will follow Liquidity into a Recession.

Caution is advised.

This entry was posted on February 11, 2023 at 12:16 PM and is filed under #PaulthePoke, Michael Douville, Trend Update with tags business, economy, Federal Reserve, interest rates, inverted yield curve, liquidity, M2, money, money supply, recession. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.