The Great Distortion
Macro Mechanics9 Jul 2025

The Great Distortion

For more than fifteen years, the foundational language of capitalism—market prices—has been systematically miswritten. What began in 2008 as emergency life support for a global financial system on the brink of collapse has evolved into a permanent and perilous economic reality. Central banks slashed interest rates to zero and embarked on unprecedented asset‐purchase programs, while governments ran historically large budget deficits. These measures, never fully reversed, were reinforced during the COVID-19 pandemic, creating a world awash in cheap money and saturated with debt. Now, the strain of this policy trajectory is coming into sharp relief: asset values have become untethered from fundamentals, risk is underpriced, and the real economy is starved of dynamism.

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Episoder(15)

The G20's Political Divergence

The G20's Political Divergence

The Group of 20 was elevated to a leaders’ level summit in 2008 on the premise of urgent, coordinated action to steer the global economy back from the brink of collapse. For a time, it functioned as t...

4 Aug 202517min

The New Rules of Trade

The New Rules of Trade

In the final weeks of July 2025, the global economic landscape was fundamentally reshaped. Within days of each other, the United States finalized sweeping trade frameworks with two of its largest part...

30 Jul 202516min

The Future of the Dollar in Perspective

The Future of the Dollar in Perspective

The U.S. dollar holds a central, yet increasingly contested, position in the global financial system. Its future is not a single, predictable path but rather the likely outcome of a complex interplay ...

28 Jul 202515min

The Rise of the Pivotal Powers

The Rise of the Pivotal Powers

On a summer morning in Rio de Janeiro in mid-2025, the leaders of the BRICS nations convened for the bloc’s 17th summit. The scene was one of carefully choreographed cooperation, yet the air was thick...

25 Jul 202516min

From Treasury Scarcity to a Debt Deluge

From Treasury Scarcity to a Debt Deluge

In early 2001, Washington grappled with a problem that now feels like a dispatch from a parallel universe. Projections for budget surpluses were so vast that policymakers debated not how to rein in de...

21 Jul 202518min

The ‘Involution’ Economy

The ‘Involution’ Economy

In the expanding cities of China, the laws of economics appear to have been suspended. A consumer can walk into a showroom and drive away in a new electric vehicle for less than $10,000. On a secondha...

18 Jul 202516min

The Unending Duel

The Unending Duel

Two competing visions of the economic world have engaged in a profound and often bitter struggle for more than a century. This intellectual contest, most vividly embodied by the Keynesian and Austrian...

14 Jul 202518min

US's New Fiscal Architecture

US's New Fiscal Architecture

In a move that will define the second term of the Trump administration, the “One Big Beautiful Bill Act” (OBBBA) was signed into law on July 4, 2025, after a grueling, party-line battle in Congress. T...

11 Jul 202519min

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