QUESTION: Marty, It was a fantastic WEC. You tied it all together brilliantly and how the real issue is this liquidity crisis. Suddenly the ECB came out and said that inflation will not subside given a recession. It appears they were watching the WEC. Do you think that the ECB is at least listening now?
ANSWER: For Christine Lagarde to publicly state that a “mild recession” will not reduce inflation is admitting that inflation has been instigated by COVID lockdowns that disrupted the supply chain and unleashed shortages. The Bank of England has come out and stated that we will see the longest recession in 100 years.
The ECB has just forced banks to repay their loans withdrawing $300 billion euros from the banking system in a desperate effort to stop inflation. This will not help for Legarde knows that even an economic recession will not prevent this type of inflation that is more akin to the STAGFLATION of the ’70s where costs rose thanks to the OPEC crisis and where we have the COVID Crisis that created shortages mixed with the climate change zealots determined to end fossil fuels despite the fact there are no alternatives. How do you even make steel without coal?
Everything is now unfolding on schedule. We are facing 2023 which will be known as the year of chaos.