by Karl Denninger, Market Ticker:
Biden has chosen, and Powell will be re-nominated for a second term.
Yes, the same man that has sent prices skyrocketing by backing Congressional “dump credit and pray” policies.
Of course he’s popular in Congress, with good cause. If he had said “Go to Hell” instead the choice would be 6% interest rates at the short end or Congress would have to cut it out. I remind you that a 6% short term interest rate means about 8% on the longer end of the curve, mortgage rates about the same and the ability of the US to continue to fund its debt binge gets cut off.
So what now?
TRUTH LIVES on at https://sgtreport.tv/
Well, the same choice is still there.
But there’s a problem with going along with it beyond his confirmation, which I expect will be a perfunctory matter: If he doesn’t tell Congress to go to Hell in the coming year inflation risks getting wildly out of control on a feedback basis, at which point he and Congress both get riots and possible civil unrest at a level that cities burn. If he does tell Congress to “go to Hell” then he gets all manner of finger-pointing, the market stops playing “nice” for indebted companies (that’s most of them), the scam-someone firms (that’s a lot of them) blow up entirely and the Democrats lose half their seats in the midterms.
I love watching someone sit on their own pile of logs that they doused with gasoline while people walk by and flick cigarette butts at them.
Sooner or later someone’s going to flick one that still has hots on the end of it.
Here we go.