Finally: Bad News Is "Bad" News!

“Globalization is slowing or reversing.  If this trend continues, we will lose its significant deflationary influence.  (Importantly, consumer durables prices declined by 40% over 1995-2020, thanks to less-expensive imports.  I estimate that this took 0.6% per year off the rate of inflation”- Howard Marks.

Zoltan Pozsar has been writing extensively about the transforming geopolitical landscape. There is no doubt that we are catapulting to a multi-polar world; in fact those who have been reading my substack or Linkedin posts since last year know that I have repeatedly been reminding them that the pillars of deflationary forces (Globalization, Cheap Russian energy, cheap Chinese labor and labor market in the US) of the last two decades are undergoing severe decline.

This week, China stunned the world when it announced its population shrank for the first time in six decades.

Source: Blo…