4/6 Meanwhile global liquidity never actually stopped expanding. Liquidity doesn’t hit markets instantly. There’s usually a 6–9 month lag between money being created and that money actually flowing into risk assets.

6/6 Doing a Volcker-style rate hike would break the system. Which leaves them with the option they always end up choosing: more liquidity. If stagflation really sticks around, the market that prices liquidity fastest might keep moving first. And we know how that will end.