Stock market crash just getting started

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So says BofA. I agree. The ‘Fed put’ is now the ‘Fed call’ unless or until inflation is brought under control. As Chair Powel has said, that only happens by him downsizing demand to fit with limited supply. That means a Us demand hiccup is inevitable, which will immediately spill over to Europe and China where domestic demand is already on its knees owing to war, energy, property and OMICRON shocks.

I am still skeptical of the structural persistence of inflation and the commodity supercycle notion though acknowledge Ukraine means it will take longer for supply-side adjustments. 

At this stage that is immaterial. The Fed is going to break everything, including commodities.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.