Cathie Wood cries for help in an open letter penned to the Federal Reserve recommending policymakers should swiftly pivot to easing to avoid a deflationary depression. 

“The Fed is making a policy error that will cause deflation,” wrote Cathie Wood’s Ark in an open letter to the Fed.

Fed tightening has handed investors an uninvestable market offering no sanctuary, so Cathie Wood cries for help

Back in May, the market was coined uninvestable as central banks imploded the bubble of everything, which they created from more than a decade of unprecedented easing policy, sending M2, the money supply, and asset prices into orbit. Unprecedented monetary easing in the wake of the 2008 financial crisis, the greatest financial experiment in the history of finance, the extended and pretend era was a fairy tale that would end in tightening and the implosion of the bubble of everything. 

“The Fed is making a policy error that will cause deflation”


Unlike the 2008 financial collapse, the coming financial calamity offers no sanctuary, and there is no escaping the pain.

So US capital markets (the S&P 500 is down -24%, for the 4th worst year on record, only 1931, 1974, and 2002 were worse; and 10Y TSYs are down -17% for the worst year on record… 1987 second worse, and bonds were down -10%) and the US economy has been left reeling. The cryptos and NASDAQ, the technology-heavy sector are all in the deep red. 

Cathie Wood cries for help as currencies around the globe implode

Every currency measured against the USD is collapsing, G7 currencies are down by more than 20%, including the EURO, GBP, and Japanese Yen.

The Fed, western aligned fiat debt system crisis has been brewing for decades. 

The International Monetary System became dependent on a 100% fiat currency regime after President Richard M. Nixon depegged the USD from Gold in 1971. 

“the coming financial calamity offers no sanctuary, and there is no escaping the pain”


Fiat currency regimes are always unstable because humans want an easy life and are led by sociopathic leaders.   

So here is the cocktail; Democracy, where citizens will always elect the leader that promises la dolce vita, megalomaniac elected leaders hungry for power, wealth, and easily corrupted, mixed in with a monetary system that can print money without constraints.  

It is called the deficit blowout cocktail, characterized by endless wars.

But over decades, the parasitic fiat debt system exhausts the supply of low-hanging fruit, resource-rich countries to pervert, conquer plunder, and pillage. Confessions of an Economic Hit Man by CIA insider John Perkins reveals all.  

Eventually, the stakes become more dangerous, reckless, and potentially apocalyptic, picking a war with the world’s largest nuclear power, Russia.

“central bank tightening has revealed who is swimming naked. It is the pension funds” – Wealth Training Company

Cathie Wood cries for help, but the system is facing more than deflation. It is facing a systemic crisis

We mentioned before, the UK sovereign debt crisis that the system was so overleveraged that central banks will eventually pivot.

But we had no idea of the desperate, pitiful state of pension funds.

Pension fund managers are the most conservative investors, and typically manage funds deploying minimal risk strategies. After all, they have to meet the immediate obligation of their retirees. 

But central bank tightening has revealed who is swimming naked. It is the pension funds.

So the UK sovereign bond crisis has exposed how desperate conservative funds are to meet their current obligations. Pitiful gilt yields mean Uk pension fund managers have been borrowing money to buy on leverage even more gilts to make up for the low yields, to finance payouts.

So when the BOE hiked rates last month by just 50 basis points, it made servicing debt more burdensome, forcing pension funds to sell gilts in an illiquid market. But if pension funds and conservative investors are in trouble. So too are the banks. 

Let us spell this out. The fiat debt system is in meltdown. If central banks keep tightening, they will create more inflation by collapsing the supply chains. An economic depression causes supply chains to collapse, creating more shortages and higher prices. To maintain profits, producers react rationally by cutting output to keep prices buoyant, thereby maintaining profits. OPEC’s recent decision to cut production is an example.

But if real yields remain negative due to inflation, no rational investors will buy bonds. Put simply, central banks have no option but to buy sovereign debt, which means the ongoing debasement of the currency. It is QE to infinity by default. 

“The US and its sidekicks are at war with the world’s largest nuclear power Russia” – Ray Dalio

Cathie Wood cries for help, but the end game is a worthless currency

The end game will be a monetary crisis. The dominoes are already falling. Every currency against the USD is already collapsing.

King USD is the last domino to fall. If so, it will mark the end of the US-led western fiat debt system.

But before we got there, no Emperor surrendered without a fight. Millions could die in a war of hegemony. The colonies are already being sacrificed. 

The two great powers are at war with each other for survival. The US is fighting to keep its fiat debt system alive. Ukraine, a former Russian republic, is another resource war. 

Resource-rich Russia is facing an existential threat, its Naval flag ship blown up, its gas pipeline blown up, a significant logistic bridge blown up, and more than 10,000 dead Russian soldiers killed with western arms and special forces. 

The US and its sidekicks are at war with the world’s largest nuclear power Russia.

Cathie Wood cries for help, worrying about keeping her bubble assets buoyant in what she sees as a coming deflationary depression

But frankly, cry me a river. What will there be left, if the world emerges from the ashes of a war that could have been easily avoided?