Blind Flight To Safety : Softly Landing Central Bank Insolvency

“Central bank profits and losses matter . . . but only when they matter.” (Seth Carpenter)

Summary:

·       The Exorbitant Privilege is under attack.

·       Energy Security diversification strategies both challenge and support the Exorbitant Privilege.

·       The probability is rising that the US Economy is stalling out as it makes an attempted soft-landing.

·       The safest US$ asset is the liability of an insolvent US Central Bank.

·       Fed insolvency is rapidly becoming a bigger problem than US inflation.

·       China is exporting deflation and détente.

(Source: CEBRA, caption by the Author)

The Curve is all about expectations. The Fed is consistently behind it.