"He knows very well that by this time next quarter, things are going to be very different."
You have me curious... it seems to contradict everything you said before it. I was nodding as you described the maintenance of the bullshit status quo and the lack of growth. So what will be "very different" in the next quarter? The level of resulting poverty? Fill me in.
We are seeing things starting to roll over. So the discussion about inflation will likely be different in 90 days if commodities continue to roll. Plus we are seeing MoM negativity on retail sales out of both Europe and the US. This is something to watch. In my view, it is likely to continue for a few reason. The unemployment stimulus is going away and people are aware of that so they will likely tighten. Also, there was a lot of pulling forward of demand as goods were bought in lieu of being able to spend on services.
I think inventory escalation we are seeing will result in a businesses realizing they overestimated the growth and will be caught with too much product on their shelves.
That is going to really change the discussion, something that ties into the Fed continuing on the same path.
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