“Finally, the U.S. got very rich by doing QE. But the license for QE came from the ‘lowflation’ regime enabled by cheap exports coming from Russia and China. Naturally, the top of the global economic food chain – the U.S. – doesn’t want the lowflation regime to end, but if Chimerica and Eurussia are over as unions, the lowflation regime will have to end, period. As we noted in our prior dispatch, the special relationship between China and Russia (‘Chussia’) is a powerful one: a marriage of commodities and industry, uniting the largest commodity producer (Russia) and the factory of the world (China), potentially in control of Eurasia.”
USAGOLD note: Pozsar’s latest and a must-read for forward thinkers…… We are in an economic war, he says. Forget the BRICS and focus instead on TRICKS (Turkey, Russia, Iran, China, and North Korea) – the alliance of the sanctioned. “Forecasts of a rapid deceleration of inflation are naively optimistic,” he warns.
Sweden, Austria start bailing out energy companies triggering Europe’s “Minsky Moment”
“Prime minister Magdalena Andersson said the government would offer hundreds of billions of kroner in support to electricity producers, the FT reported. The PM warned that, left unchecked, rising collateral demands for electricity producers could ripple through the main Nasdaq Clearing market in Stockholm and, in the worst case, spark a financial crisis….”
USAGOLD note: Russia cut off natural gas flow through the Nordstream pipeline “indefinitely” late last week due to what it called a “technical fault,” according to a report over the weekend from Financial Times.
Image attribution: Maulucioni, CC BY-SA 4.0