Commentary
For three years, I’ve been amazed at the relative calm in the financial system. It truly did not seem believable to me that governments and central banks could utterly shatter all market functioning and flood the world with paper money and yet there be no structural consequences for the banks.
My only question was what would be the trigger and how would it unfold.
In retrospect, the whole thing is perfectly obvious.
Between the first week of March 2020 and exactly two years later, the Federal Reserve printed $6.5 trillion, at some point reaching a per annum increase of 26 percent. We’ve never experienced anything like this before. It also represented a complete reversal of Fed policy, which had been attempting a tightening for the prior six months….