Authored by GoldFix ZH Edit
This is what globalism dying sounds like. But be careful what you wish for.
We are seeing increasingly vocal pushback against Powell’s policies from non-American economists. The first of which was Micheal Every, who we read actively via his ZeroHedge posts and noted several times in this space his growing concern for the end of neo-liberalism and the return of a more mercantilist world.
Recall from Neo-Liberalism is Dying
Our real problem is [ ] not just about inflation or rates, which are just painful symptoms, but rather a paradigmatic failure across the political-economy. The more we only write about inflation and rates, the deeper the hole we dig. -Michael Every
We thought then, and continue to think Neo-Liberalist policies, and those who most benefit from the concurrent global trade it affords most (ourselves included), are feeling the pain of de-globalization for sure. And that as dominoes fall, it will eventually come to roost on American shores, albeit muted by our weakened but still in place global currency status.
Simply put, the pinch of shrinking supply chains, and the financial deleveraging associated with our global collateral crisis, is now being felt by those allies least positioned to implement a back-up plan economically.
…Now comes a second UK economist with a slightly sharper axe to grind.
Today, UBS’ Chief economist lays into Powell’s policies from the viewpoint that Powell (Lawyer, not Economist) and company are not laying out a path or plan, but instead are “data dependent” which appears a dodge to him (and to us as well)— especially in light of the complete unreliability of said data.
One notable comment to that effect:
This [ ] is what happens when economists are not in charge.Not so much leadership as dithering.It's difficult to know what the economic vision of the US Federal Reserve Chair or the ECB President actually is. Previous central bankers, who have been economists, have been capable of articulating an intellectual framework for policy.
The points made are valid. And the complaints are getting more vocal in the EU. Even more so in the UK perhaps. People want a narrative to hold onto. But Powell only says: 2% Inflation or Bust over and over.
IF UBS and RABOBANK are right no doubt they will rightly dance on Powell’s grave when something breaks beyond fiscal repair. But as long as something American does not break, we’re not sure Powell cares as much anymore. All of this represents a growing economic rift between the US and its fellow G7 partners.
Here is another choice quote:
Powell and Lagarde, and the people who thought, let's appoint lawyers to do an economist's job, have only themselves to blame.
Europe is feeling real pressure from both Powell’s policies and his newfound desire to keep them guessing and let the market sort it out.That is making the Economist Guild very unhappy on both sides of the Atlantic. We cannot help but look at this through the lens of our geopolitically savvy friend Tom Luongo.
What it boils down to is: We are entering the anger stage of the death of Globalism as voiced by US partner countries. What effect will that have on future cooperation economically and geopolitically during an interminable war in Ukraine.
Follow along transcript attached.
Continues here ...
Free Posts To Your Mailbox
