The Advent Of Inconvenient Truths
“Our choice now is a starker – and darker – one: how dangerous are we actually prepared to make our world?” (Charles III)
Summary:
· King Charles III marks the advent of global inconvenient truths.
· The Great Fraud of China is crumbling to reveal moral hazard and wealth confiscation.
· China’s attempted Global De-Dollarization has increased the global supply of, unwanted, Yuan and increased the global demand for scarce US Dollar Reserves, and, thereby, failed.
· The “highly likely” estimated probability that China will trigger an “Asian Debt Crisis rinse and repeat” is rising further.
· Mr. Market’s Editorial confirms that Emerging Markets’ financial instability, originating from China, is the lowest hanging fruit on the Tree of Liberty.
· POTUS and scarce US Dollar Reserves are “taking the African + out of OPEC+”.
· Brazil joining OPEC mas que nada.
· Chat GPT is teaching Mr. Algo, the global macro technical Alpha factor, that there is no “+ in OPEC+”.
· The SNB confirms that it is considering a return to solvency by a process of financial asset price inflation rather than real economic price inflation.
· The SNB’s return to solvency will require Swiss Franc debasement.
· The Global Reserve architecture is digitally advancing to contact, with the emerging global financial crisis, through the agency of the SNB, in a process that preserves the US Dollar Global Reserve Currency status.
· Al Gore has confirmed the “inconvenient truth” about the Ungoverned Kingdom’s (UK’s) “Friends-and-Family Shoring” strategy in relation to Energy Security and Climate Change.
Abstracts
· China is highly likely to be the trigger for an “Asian Debt Crisis rinse and repeat”.
(Source: the Author)
· The process by which US fiscal deficits finance Chinese trade surpluses, which then finance US investment in China, is strategically broken.
(Source: the Author)
· Non-G7 Risk-Off emerges out of Africa on the Sino-American Cold War front line.
· Non-G7 Risk-Off is causally identified with scarce US Dollar Reserves.
· The fire sale of African Crude, priced in US Dollars, to replenish depleted US Dollar Reserves, is “taking the + out of OPEC+”.
· The “Asian Debt Crisis rinse and repeat” is occurring in the Chinese Shadow Banking sector.
· China’s redirection of US Dollar reserve resources, from Belt and Road to the domestic economy, is an emerging market headwind.
· The BIS positions the BOK’s CBDC project as the response to the “Asian Debt Crisis rinse and repeat” that is currently being responded to with short-selling bans.
(Source: the Author)
· The Boston Fed’s new definition of full employment suggests that the USA should have a New Deal.
· A US New Deal requires a bigger fiscal deficit.
· A bigger US fiscal deficit requires a bigger Fed balance sheet.
· A bigger Fed balance sheet requires a global financial crisis.
· A global financial crisis requires China and Asia to “rinse and repeat”.
· A global financial crisis is an enabler of the US New Deal, rather than a threat to it, because of the Saltwater demand-side/ Freshwater supply-side US policy mix.
(Source: the Author)
· Capital flow data, and the wars in Ukraine and Gaza, illustrate how the USA has become a global source of scarce/expensive reserve currency.
· The global demand for reserve currency requires the liquidation of US Treasuries at the same time as the Fed is liquidating its balance sheet.
· Global financial instability will prompt the Fed to reverse course and start providing scarce reserve currency more abundantly and cheaply.
(Source and emphasis: the Author)
· The insolvent Swiss National Bank (SNB) intends to return to solvency by a process of financial asset price inflation rather than real economic price inflation.
· The action of the Swiss National Bank (SNB)is a global risk-on signal for developed economies’, ex-Ungoverned Kingdom (UK), asset prices.
· The action of the Swiss National Bank (SNB) confirms the recent behaviour of “He/She/They Gold”.
· The SNB will also embrace the digital currency debasement zeitgeist of the times.
· Rumour has it that the ECB also intends to return to solvency by the same method as the SNB.
(Source and emphasis by the Author)
· He/She/They Gold has the correct global macro view.
· He/She/They Gold envisions a debased currency polycule that is artificially inseminated by Modern Monetary Monopsony Theory (MMMT).
(Source: the Author)
· Mr. (Bond)Market is giving the “@1990s” thesis the “Mother of All Likes” with a Yield Curve Bull-Steepener.
· Mr. (Bond)Market’s price action is consistent with a new definition of full employment.
· Mrs. (Equity) Market is estranged from Mr. (Bond) Market, but he is right.
· A happily consummated re-union, of Mr. and Mrs. Market, will give birth to strongly and healthy correlated bond and equity market children.
· He/She/They Gold has the correct global macro view.
· He/She/They Gold envisions a debased currency polycule that is artificially inseminated by Modern Monetary Monopsony Theory (MMMT).
(Source: the Author)
· The Boston Fed’s new definition of full employment suggests that the USA should have a New Deal.
· A US New Deal requires a bigger fiscal deficit.
· A bigger US fiscal deficit requires a bigger Fed balance sheet.
· A bigger Fed balance sheet requires a global financial crisis.
· A global financial crisis requires China and Asia to “rinse and repeat”.
· A global financial crisis is an enabler of the US New Deal, rather than a threat to it, because of the Saltwater demand-side/ Freshwater supply-side US policy mix.
(Source: the Author)
· “Friends-and-Family Shoring” is the Ungoverned Kingdom’s (UK) Polycrisis strategy.
· Blue Horseshoe loves INFY, but he’s really got the hots for BP.
· Behind the next great fortune, in the Ungoverned Kingdom (UK), lie the lies about Energy Security.
· The Carbon Footprints in the Ungoverned Kingdom (UK) follow the VIP Lane, by way of a private jet, away from the Green Transition, to great fortune behind which lies the familiar/familial nepotism.
· Conflicted commercial and pecuniary extended family interest has been obscured behind a plausibly deniable cloud of Energy Security.
(Source: the Author)