Do you remember when ‘spin’ was a new idea and ‘spin-doctors’ were a new concept? Well, here we are 25 or so years later and it has become hard to believe anything. This is a bad situation made worse by finding ourselves with a novel and worrying business configuration. What just happened and where are we heading?
As I am sure my audience of engineers love to do, I will try and simplify as much as possible. Covid and actions to combat it have brought us to a point where inflation is baked into the global economy and interest rates are going up. For some time to come, the sovereign deficits of the major global economies are going to grow, while that ‘real’ GDP - after adjusting for inflation - is set to fall.
You will likely hear the word ‘reset’ a lot going forwards when it comes to markets, economics and even politics, but there will be no such thing. We are not going back to a previous state, there will be rebalancing to get matters to a new equilibrium...