Global liquidity (via the G5 credit impulse + US fiscal impulses) has eroded significantly over the last year

*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

P1 pic.twitter.com/WIVfXbDp4Q

— 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

P3 pic.twitter.com/q7vTeR9qRL

— Adem Tumerkan (@RadicalAdem) March 31, 2022