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Geopolitical Update: 10 difficult months for investors lie ahead

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By Christian Takushi Macro Economist – Switzerland 17 Dec 2021

12 min PODCAST: 10 difficult months for investors ahead

Investors are in for a rude 2022. Situation for Democrats is much worse than what the Financial Press and the Media are showing. This explains the pressure Pres. Biden is putting on his new FED chief to bring inflation under control within 10 months. The Mid Terms 2022 are already turning Washington in a horrible battlefield. That the liberal press may not want to show it, is understandable, but that won’t protect investors.

“Wall Street, we’ve got a problem!”

FED chairman Powell has said “We’ve got a problem with inflation”, but since he won’t do nothing now and has only announced some hawkish measures for 2022, many investors think it is the old “trick”. They talked for 10 years to normalise monetary policy, FED did nothing. Investors know it has worked for 12 years: Buy the dips no matter what. They grew accustomed to the fact that political and geopolitical factors were mere noise. Not so this time.

Politics rules 2022: The FED is on a “short leash” held by President Biden and he won’t let the inflation-seeking FED hand over the House and the Senate to Republicans next year. Investors may believe that the FED and ECB have been fighting inflation, Biden knows better: central banks want more of it.

Americans are upset about higher consumer prices. Thus, Pres. Biden must have said to Chair Powell “the Fed funned this inflation for years, now you bring it under control”. This is why Powell II has nothing to do with Powell I. Once the Mid Term Elections are over, President Biden will let Powell have more leeway again in monetary policy.

G7 Central banks become Russia’s and China’s ally

During the next 10 months there will be more volatility for equities and other risk assets – the Dollar could break out on the upside and markets may build in expectations of more volatile interest rates. All that could make overpriced assets correct significantly.

Worse off, the enemies of the West are now closely monitoring our highly vulnerable indebted economies and stretched financial markets. I have ascertained they are studying plans that could help set off an implosion of our inflated wealth, inflated asset prices and vulnerable supply chain – Now, that is an enemy on its knees.

As I have been warning last year, OUR CENTRAL BANKS HAVE BECOME THE BIGGEST THREAT TO OUR NATIONAL SECURITY.

That is the background to the coming “heated” Winter and the 2022 Mid Term Elections.

Our enemies no longer have to rely on missiles or tanks to bring Western Europe to her knees. Our bankers did the work for them!

 

In 2022 the FED may have to sacrifice investors. Most of the shares are owned by the wealthy, not the people President Biden needs to reach in 2022.

By Christian Takushi, Macro Economist & Geopolitical Strategist, 17 Dec 2021 (public release delayed & truncated on 28 Nov 2021)

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Disclaimer: None of our comments should be interpreted or construed as an investment recommendation

A distinct broad approach to geopolitical research

(a) All nations & groups advance their geostrategic interests with all the means at their disposal

(b) A balance between Western linear-logical and Oriental circular-historical-religious thinking is crucial given the rise of Oriental powers

(c) As a geopolitical analyst with an economic mindset Takushi does research with little regard for political ideology and conspiracy theories

(d) Independent time series data aggregation & propriety risk models

(e) Takushi only writes/comments when his analysis deviates from Consensus

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