As we await the next move of central banks on the interest rate front, it’s worth noting that the current financial environment, characterized as it is by over 40 years of falling interest rates, is very different from the rising rate environment that lasted from 1947 to 1981. Protecting oneself from the fallout is not going to be as simple as some might think.

[Dollar debasement] encourages the growth of unsustainable models that will lead to bankruptcies when times change. This is a hard one for many investors to see. They think of themselves as smart enough to sell the stock. But the fact is someone owns it all the way down to zero. And some banks lend to these failing enterprises, and at the end of the day may realize pennies on the dollar. The Fed’s credit cycle destroys capital. Keynes and Lenin understood that it generally impoverishes everyone, though they knew that it “actually enriches some.” Even if you are one of the few who are enriched by trading this cycle, you should be aware that it’s destroying the civilization in which you live.

When the left-wing corporate media starts to become aware of the fact that the economy may not be as rosy as they imagined it to be, you know that efforts to hide the economic consequences of Covid mandates, supply chain snarls and the war in the Ukraine are failing.

“You know, I said there’s storm clouds but I’m going to change it … it’s a hurricane,” Dimon said Wednesday at a financial conference in New York. While conditions seem “fine” at the moment, nobody knows if the hurricane is “a minor one or Superstorm Sandy,” he added.

“You’d better brace yourself,” Dimon told the roomful of analysts and investors. “JPMorgan is bracing ourselves and we’re going to be very conservative with our balance sheet.”