Feds Have Economy on Life Support

Our faith is weakening. That is, our faith that the government will be able to cause inflation, sooner or later. Let's review our own narrative: deflation now, inflation later. It's very simple. Maybe too simple. After a half a century of credit expansion, we now have a credit contraction. In this sense, everything is happening as it should. There was a crash and credit crunch at the end of last year. Then, the feds panicked. They fought back with monetary and fiscal stimulus. Rates were