Article Image

IPFS News Link • Central Banks/Banking

This Is Economic War - Central Banks Are The West's Paladins

• https://www.zerohedge.com by Bill Blain

Trying to strip out noise from facts has never been so complex! It's time to resort to the rarest of all commodities; Common Sense – to work out how this will likely play out. There will be clear winners – and one massive loser – and significant economic pain before we get there.

At times like this its worth recalling two of my most overused market mantras:

The market has but one objective – to inflict the maximum amount of pain on the maximum number of participants, and

Things are never as bad as you fear – but never as good as you hope.

After that quick reminder of short, sharp and contradictory market common sense… what are markets telling us this morning? My opening bid for Chelski is £1 and give it to the fans… even if Chelsea supporters are definitionally delusional jibbering idiots (in my humble opinion). ? (Seriously… I wonder which Middle East prince will pick it up…)

There is so much noise, froth, sturm und drang as the news for Ukraine whips up all kinds of confusing signals threatening to undermine the markets. It's a good idea to Stop. Look. Listen. Think. Try to figure out the likely, unlikely and very unlikely consequences. There is an incredible amount of information, disinformation, news and views out there – the trick is understanding what is real, likely and possible and discounting what is not.

After thinking about it.. I find myself surprisingly bullish… even though we are, de-facto, engaged in economic war with Russia. To ensure it does not turn hot across the whole of Europe – we need to fight it just like real war, putting the West's economies in full conflict mode and being prepared for economic pain inflicted back on us.


Agorist Hosting