On the precipice of a financial crisis

Just want to go on record…

Ruffer  is merely one example 

EU is in trouble from Russia sanctions blowback and loss of nordstream 

COVID cases are at a high plateau going into fall/winter 

Worse situation than anything in my lifetime.  Don’t know how to make systemic changes so maybe just get prepared to hunker down again.

Yves Smith discusses…

rapidly accelerating real economy crisis, which is exacerbated by central bank tightening as pretty much the only line of defense against inflation that is almost entirely the result of a a multi-fronted supply shock.1 Needless to say, the Fed raising interest rates (which Bernanke recognized as necessary in 2014 to tame bubbly asset prices but then lost his nerve) does nothing to get more chips from China or magically cure Covid-afflicted staffers so they can show up at work. But it will whack all sorts of speculators and financial firms who have wrong-footed their interest rate positions.

Nouriel Roubini 

thinks we are on the verge, stagflation rampant

Satyajit Das  has similar analysis 

Noise – day-to-day gyrations and speculation- masks the fact that a major re-set, the largest since 2007, may be underway.

The first driver is that magical economic thinking and era of ultra-cheap money is coming to a close.

The second factor is the brutal destruction of ludicrous financial fantasies. Everything and everywhere asset price bubbles, fuelled by decades of debt financed consumption and investments and low cost of funds, now face their most rigorous examination.

few are, for the most part, unwilling to acknowledge conflicting priorities. Additional investment in public services and cost of living assistance is incompatible with lower taxes and sound public finances. Deregulation and interventionism on pet issues are inconsistent. Sacrifices and lower living standards are firmly rejected.