Free Republic

Below we consider the classic (and oh-so predictable) tactics of debt-soaked nations facing a showdown (corner) between tanking markets and ripping inflation. Ultimately, I see a stagflationary end-game in which both occur, but for the near-term, prepare for more inflation, as it’s the option all debt-soaked sovereigns are eternally forced to take. The Cruelest MonthT.S. Elliot famously described April as the cruelest month, but the recent (and ever-unfolding) events of May seem far crueler. As we have warned from the very onset of this otherwise avoidable war in Ukraine, the backfiring of Western sanctions against Putin (de-dollarization, inflationary tailwinds and...

We have heard to the nth degree what President Soetoro thinks he inherited from the Bush administration. Our ears bled from the incessant whining from Soetoro and Democrats, “ What we inherited, what we inherited.” Sounding like schoolyard children tattling on one another. Whatever one says about President Bush he did not practice the puerile pursuit of finger pointing. But was this because he inherited surpluses, balanced budgets and a world of peace from the Clinton administration? According to Nancy Pelosi, that is just the case. But she is wrong. Bush didn’t inherit a peaceful world from President Clinton on...