Hard Landing, Soft Landing, Now No Landing. It All Means the Same…
The 'Great Inflate-up' is in full stride. Except, the aim now is for governments, central banks, and mainstream commentators to make the public think higher inflation is for their own good...
We’ve gone from ‘hard landing’…
To ‘soft landing’…
To now the potential for ‘no landing’!
What does this all mean?
In our view, it provides further proof of what we’ve called the ‘Great Inflate-up’.
We’ll explain more below…
Wars and bombs are going off everywhere.
The Middle East is in turmoil… again. And the rest of the world sticks its nose in.
It’s perhaps not surprising.
After all, every politician (outside the Middle East) at any point in time, assumes they are the ones who can fix the problem.
Bearing in mind, there have been more ‘fixes’ than you can shake a stick at for at least the past 100 years. And many more ‘fixes’ before that.
But hey-ho. We’ll give them their moment in fantasy land.
Meanwhile, as war and war spending continues, it puts an even bigger burden on the taxpayer… even more demands on the government to spend… and even more demands for taxes and debt.
That’s where we are today.
It requires a ‘Great Inflate-up’. That is, for governments and their central banks to encourage inflation so that it makes it easier for the government to continue borrowing and spending.
It’s why most central banks worldwide, have already begun a cycle of cutting interest rates. They hope that by cutting rates, economies won’t enter a recession and that inflated incomes and profits will result in higher tax incomes for government.
That’s plan. So how’s it working out?
For them, it’s working out well. But what’s good for the government and central bank isn’t necessarily good for the individual and consumer.
Bloomberg reports:1
‘Equity markets gained on optimism about the health of the US economy and speculation that stimulus will finally kick-start growth in China.
‘Benchmarks advanced across Asia, and European futures pointed to a stronger open, following Friday’s US payroll data. Treasury 10-year yields rose to hover just shy of the key 4% threshold as investors trimmed bets on big Federal Reserve interest-rate cuts. The euro, pound and most Asian currencies weakened against the dollar.
‘Trading is being shaped by signs of resilience in the world’s largest economy after employers added the most US jobs in six months in September. Wagers on a “no landing” scenario — where US growth momentum remains intact and inflation reignites — stand to boost the greenback while triggering a drop in haven assets. A gauge of Chinese stocks in Hong Kong jumped to the highest level in more than two years before mainland markets reopen Tuesday after a week-long holiday.’
We guess that’s just what they want.
The avoidance of any kind of financial crash… economic recession… or anything else that will cause panic and disquiet among the population.
Much better if the public doesn’t realize its government is fleecing them under the pretence that they’re looking out for their interests.
Whether the plan works or not is something we’ll only know after it appears to work… or after it’s obvious it hasn’t worked.
As for the timeframe on that, it’s anyone’s guess.
What we can be certain about is the ‘Great Inflate-up’ of government- and central bank-induced inflation is well under way.
And with that will come the reset of inflation expectations. That has already started too. Expect it to begin getting louder.
We look forward to seeing you back here tomorrow.
Kris Sayce
Editor, Crack of Doom
Issue 41 of 10,000
(We believe in the importance of setting goals. And we figure what better way than to set a big goal from the beginning. If all goes to plan, our final issue of Crack of Doom will be sometime in the 2060’s!)
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Catherine Bosley, ‘Stocks Rise on Optimism Over ‘No-Landing’ Scenario: Markets Wrap, Bloomberg (Web Page, 7 October 2024) <https://www.bloomberg.com/news/articles/2024-10-06/asian-stocks-eye-early-gains-after-us-jobs-report-markets-wrap>.