by Mark O’Byrne
The Telegraph’s Ambrose Evans Pritchard reports that “the risk of a US recession next year is rising fast” and that “the Federal Reserve has no margin for error”.
[…] AEP is quite well connected and very well informed on such matters and hence the need to consider what he is saying and more importantly prepare:
“Liquidity is suddenly drying up. Early warning indicators from US ‘flow of funds’ data point to an incipent squeeze, the long-feared capitulation after five successive quarters of declining corporate profits.
Yet the Fed is methodically draining money through ‘reverse repos’ regardless. It has set the course for a rise in interest rates in December and seems to be on automatic pilot.”