Issue 93  June 17th 2022

The European Central Bank is Trapped. Here’s Why.

Several of the major central banks are stuck in a trap of their own making.

This includes the US Federal Reserve, the Bank of Japan, the European Central Bank, and others.

The credit-based global financial system we have constructed and participated in over the past century has to continually grow or die. It’s like a game of musical chairs that we have to keep adding people and chairs to in order for it to never stop...

Full force of central banks siphoning world liquidity

Coordinated or not ahead of this month's G7 summit, global central banks are accelerating interest rate hikes but also actively draining the giant pool of cash swilling around world markets and buoying currencies to stymie imported inflation...

A perfect storm in banking is brewing

Now that interest rates are rising with much further to go, the global banking system faces a crisis on a scale like no other in history. Central banks loaded with financial securities acquired through QE face growing losses, and their balance sheet liabilities are now significantly greater...

Even after Admitting She Underestimated Inflation, Janet Yellen Still Doesn't Understand What It Is

According to the June 1, 2022, Financial Times, Janet Yellen, the US Treasury secretary conceded she was wrong last year about the path inflation would take. Yellen told CNN:

"There have been unanticipated and large shocks to the economy that have boosted energy and food prices and supply bottlenecks that have affected our economy badly that I didn’t fully understand, but we recognize that now."

To be able to say something meaningful about inflation...