because, according to all those macro experts, the effect takes 12 to 18 months to unfold. we are now a little over 12 months since they started hiking. we will see….i am also like you a little surprised. but you can see how the interest expenditures of the US is going crazy. they need their bills paid, and the cost is acceleraring
Discussion
True. The effects on the real economy should take 12-18 months but one would expect the risk markets, which are discounting mechanisms, to be declining in advance of this but so far they have not.
Interesting. IDK about these dynamics but curious what Preston has to say about it. I personally think, we can keep thinking rationally all we want, but the US FIAT system is SO BIG and the FED is so powerful, they can literally do what they want without any consequences. They bail everybody out who will knock on their door. We won’t even notice. We could see a ‘never recession’.