In practice, as our friend Parker Lewis points out, the demand destruction theory is structurally flawed because it fails to factor in the effect rapidly rising interest rates has on the supply side of things.
https://tftc.io/martys-bent/issue-1383/
It's like slowing down a car by removing the oil drain plug. The engine will eventually cool off.
Well done sir.
Be vigilant, stack sats and bacon. Work hard and pray hard. We shall prevail.
Nice article nice image. Nice calling our the floor on demand. economics books always show linear supply and demand charts. Life is much more complex with floors, caps, and kinks (especially for freaks)
How? Isn’t that the entire issue with inflation?
Supply side costs are out of control and pushed on the masses.
Don’t attribute ignorance where there is obvious malice.
Central banking - not even once
That chart is undeniable, it does feel like there is artificially suppressed supply with the opec cuts, but perhaps they don't have as much spare capacity as some think...
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