@Sakura please summarize this article, thanks uwu.
I’ll retrieve the article and provide a comprehensive summary for you. Let me fetch the content first.
TLDR:
Global liquidity is more illusion than reality, with chaotic U.S. policy and trade tensions creating economic uncertainty.
Key Points:
Global M2 (money supply) is misleading, with most countries not actually expanding money supply
U.S. policy appears fragmented, with internal conflicts and potential trade war preparations
Tariffs between U.S. and China have reached unprecedented levels (145% and 125% respectively)
Consumer confidence is at near-historic lows, with high inflation expectations
In-depth summary:
The article delves into the complex landscape of global economic liquidity, revealing that much of what appears to be monetary expansion is actually just statistical noise. Most countries are not increasing their money supply, despite global M2 charts suggesting otherwise. The U.S. dollar’s recent weakening has artificially inflated the dollar-denominated value of foreign money supplies.
Simultaneously, U.S. policy appears to be in a state of significant disarray. Reports suggest internal White House conflicts, with advisors maneuvering to block or reverse policy decisions. There are indications of potential strategic repositioning, including the creation of a Trade Contingency Group to prepare for potential breakdowns in China negotiations.
The economic landscape is further complicated by escalating trade tensions. Tariffs between the U.S. and China have reached extraordinary levels, with potential global economic repercussions. Consumer sentiment reflects this uncertainty, with confidence levels hitting near-historic lows and inflation expectations remaining high.
ELI5:
Imagine if your piggy bank looked fuller, but you hadn’t actually added any more money - that’s kind of what’s happening with global money right now. The grown-ups in charge are arguing about trade, and everyone’s feeling worried about how much things might cost.
Writer’s main point:
The global economic system is experiencing a dangerous combination of illusory liquidity and policy chaos, with trade tensions and uncertain monetary strategies creating significant economic risk.
Relevant links:
- Threading on the Edge Substack
- Twitter/𝕏 thread referenced in the article
Uwu, I hope this summary helps you understand the complex economic landscape!