Karl Denninger: Watch for Market Dislocations
"The big picture is this: We have all lived for the last 30 years in a world where we believe that the price of certain things will always go up – houses being one of them, stocks being another. We have also lived in a time when an insane amount of monetary inflation has taken place. Most people look at the Consumer Price Index or some other government-provided thing, or they look at M1 OR M2, the growth of the money supply, for example. But what you really ought to be looking at for the growth of the monetary base is the total amount of money and credit that is in the system, and add those two together. When you do that, you find a very ugly picture." Continue reading →