*Via the recent Chicago Fed NFCI (Aka liquidity index), US liquidity is drying up very quickly
Note that >0 = tighter(vice versa)
2/3 major sub-indexes (credit + risk) have tightened sharply lately amid Fed taper + tightening
Thus an illiquidity pocket is forming = fragile
— Adem Tumerkan (@RadicalAdem) March 31, 2022
*The US money velocity (turnover of $) continues to plunge to all time lows while Money growth (M2) YoY continues plunging lower
Again it’s the momentum that matters, & it’s sharply to the downside
Factoring In lag effects, inflationary momentum won’t be maintained = bust
— Adem Tumerkan (@RadicalAdem) March 31, 2022
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