“The world is being wracked by an economic war that’s undermining the deflationary relationships that have prevailed in recent decades where Russia and China supplied cheap goods and services to more developed nations such as the US and those in Europe, he said.”
USAGOLD note: Pozsar sees the economic war between the West, Russian and China as fertile ground for inflation. “War is inflationary,” he says. He foresees the Fed ramping up rates to 5%-6% in order to contain it and an L-shaped recession. He believes demand needs to be restricted in order to square with reduced supply from Russia and China. This latest from Pozsar, widely respected for views on monetary policy, is likely to receive considerable attention on Wall Street and beyond.