Hello and welcome to Broconomics.

Now, there has been grumbling, grumbling in the comments that I have strayed too long from, you know,

the boring business of, you know, markets and investing in economics and all that sort of stuff. So, so here I am returning with a bit of an update on the market, what's going on, and we can talk about all those lovely things that we like to talk about here on Brokeconomics, such as, you know, the liquidity and PMIs and et cetera and so forth and see if we can make an assessment of what's actually sort of going on at the moment. Now, just to recap some of the core, let's do it as a kind of a bit of a recap of the

core arguments. And that is that the investment markets are not just, you know, doing the old

fashion discounting earnings or looking at confidence. It's as much as, well, I mean, it is still

those things, but it's also about the water level that floats all boats. It's about liquidity.

So what is happening there and what is happening to the debt machine, which is, well, first of all,

of keeping the various sovereigns machine, which is, well, first of all, of keeping the various sovereigns

funded, which the sovereigns like very much the governments of the world like. But also by

necessarily doing that, they're creating an environment in which asset prices can't really help

but rise.

So some specifics on that.

The Fed ended SOMA, which if I remember correctly, is system open market account,

something like that. But basically they ended the running off of QE that they had previously done. So I think that ended late last

year from memory. So, you know, the balance sheet reduction in the US has, has ended. That's not

the case in the UK. And we come to the UK later as well. So global liquidity for that and other factors that we talk about is rising again.

And that's good for assets, especially assets that can't just be printed.

So physical stuff, land, manufacturing, gold, Bitcoin, none of that can be printed. Energy. Energy

is something that we're going to want to talk about. The issue is, however, right, if the dollar is

falling, which it is, and equities are rising, which they are, and gold's rising, and Bitcoin's

rising, well, it's rising a bit anyway. And bond volatility is yet falling and yields are looking managed.

Well, that does sort of smell like, you know, a liquidity injection.

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