Elon Musk takes over Twitter

To take this beyond Elon Musk (he is indicative of something bigger right now). A commercial real estate bubble looks to be starting to pop. ... Columbia Property Trust is defaulting on loans left and right in the last month. And that is with just 450 basis points of Fed hiking so far.

There was a read on PCE (the Fed's supposed preferred inflation reading) this morning, and it was hot, hot, hot. They have zero control and are not doing nearly enough. So the fantasy of them having tamed inflation is taking a hit right now. Which isn't surprising, considering how much money is still sloshing around from what they unleashed, chasing too few goods and services.

The problem is, if they actually bring their terminal rate up enough to deal with the inflation that is eating people up. ... it's going to be ugly for the global economy. They created a looming credit crisis if they tank the economy. ... and there is no way out because the rising prices are not going away with just their hopium strategy.

Keep this in mind. ... What is happening with PIMCO / Columbia Property Trust is just a preview of what is looming. You have so much debt that was taken on for more than a decade that was predicated on being able to roll over / refinance that debt in perpetuity at negative rates in real terms. Those debt loads grew bigger and bigger on the back of the distortions. MOST of that debt is still floating at artificially low rates, and won't be resetting until late 2023 to 2025, when there is going to be trillions of dollars of debt that needs to be refinanced -- much of it by entities that are operating as zombie companies; no earnings, no cash flow to service debt at what it should have cost. The world can not afford a terminal rate of 5 percent on their overnight rate, let alone anything higher, which is what it is going to take to tame the inflation tsunami they unleashed.

My best guess. ... having seen their BS play out multiple times. ... is that the nonsensical 2 percent inflation target (when their silly mandate is "stable prices") Ben Bernanke made up and that now gets talked about like it is some sort of scientific matter of necessity (as savers lose money in real terms), is going to get pushed up to a 3 or 4 percent inflation target. And Joe Q. is going to eat shit. We are all going to suffer as our purchasing power gets destroyed. Inflation is a more "hidden" tax than fiscal santity and allowing rates to float in a free market. ... and they are cowards so they always try to inflate away the debt they are responsible for on the backs of all of us. The problem is that there is no reason to believe that they will be able to avoid massive credit defaults (and the economic hit) even as inflation is raging. They sold a free lunch. ... and now they have zero control and are staring at stagflation.