The World Blog by humble servant.

American democracy in action is as perturbing and frustrating to watch for a US citizen as it is confounding to outsiders. It's become especially true in this age of extreme partisan politics, where legislation is prepared, debated, stalled, passed, or killed through parliamentary procedures and processes that are opaque even to those participating in them. Rare are the moments of bipartisan agreement, when the democratic processes appear to flow seamlessly, allowing critical legislation to be enacted in a timely fashion. However, when Democrat House Speaker Nancy Pelosi pushed through a massive $40 billion appropriations bill for aid to Ukraine, she did so in a single day. The text of the proposed legislation was released in the morning, a ‘debate’ was held throughout the day (in actuality, little more than a series of speeches by lawmakers on why this legislation was so important), and then a vote was taken that saw the bill approved by a 368-57 margin. It was then sent on to t...

The liquidity crisis this time is COMPLICATED. This time we do not have the traditional speculative boom which has produced inflation. This time we have shortages and there is NO WAY a central bank can prevent this type of inflation by raising interest rates. If anything, it will only propel the shortages so we have the ironic situation that economic decline is unfolding into 2023, but the shortages will get worse causing even higher inflation ahead. Hence, capital is retreating out of confusion creating a period of low tide. But the standard impact is DEFLATION but that means demand is declining relative to supply. Now we have a decline in supply because of the regulations and war. Consequently, prices will rise even in a recession because it is a shortage of supply, not a decline in demand. It is this lack of understanding that is creating the liquidity crisis.