Pyramid Power

One summer never ends
One summer never begins
It keeps me standing still
It takes all my will
--The Motels

In order to really 'print money' in our current system, initial credit offered by the Fed needs to be pyramided many times thru the banking system via loans and leveraged investments. When the system is functioning, an initial dollar of credit can be levered 10 times or more.

It's not functioning right now.

Bank loans continue to fall. Until this trend reverses, hard to argue that we're seeing much in the way of inflationary forces.

The tone, instead, is one of deflation.

position in SPX