Interesting links

• Richer Report gives examples how ZIRP and fiscal suppression is going to do to the residential housing market what it has already done to equities and many other asset classes. Stockman is the first person to warn about this trend. You can read some of his stuff here. The basic problem is that with debt so much cheaper than equity, both because the central banks push down rates and because debt gets a favourable tax treatment. The result is a cratering of capital investment and a flood of debt issuance used to buy back shares. The latest developments are the worst yet:

• Nordea research points out that we’re already in a MMT world. Bizarrely, Rishi Sunak is still talking about “balancing the books” for the UK. The only way this can happen is by dropping real value of the debt, and the only way to do this is to drop the real value of the currency. GBP and USD have to fall against real assets and probably against JPY (probably CHF too).