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Wednesday, 04/26/2023 8:10:44 AM

Wednesday, April 26, 2023 8:10:44 AM

Post# of 7894

And maybe it’s just me

But my FBI vocal stress analyzer (bullshit detector) just about throws a giggle fit when the talking heads start over emphasizing how “the banking system is just fine”

… just a few bad eggs

Nothing to worry about… move on

But…. The physics of the monetary disruption can’t be ignored

There is a price to be paid …



First Republic Bank, in the headlines for a few days is teetering on collapse

So far it appears that the financial system downturn is unwinding in an orderly manner

If “magic money” (any sort of central government M2 expansion) is used to patch the hole, it will just add to the problem in a broader sense

Fed injects money into the system

Bubble in valuation is created

Fed restricts M2

Economic breakdown starts

Bubble pops

Fed attempts to reinflate by some form of QE

Repeat over the decades

Here we are, doing it again

Middle and lower income families take the biggest hit through inflation and devaluation of the dollar

The biggest impact on GSPE going forward is the increased cost of financing which factors heavily into the structure of the next step

That first rung of the ladder is a bigger step

The prize that is targeted has grown in value as well

Being in a safe position overall keeps stress inputs low (for those who are affected)

Apparently, my neural network has very few stress receptors

They were crowded out by all of the receptors for joy, beauty, and love

smile

A GSPE success story will light those receptors up like a Christmas tree

Looking forward to it

Cheers

spec

- Foglifter -