Faber News Flow

In retrospect, it was inevitable: after European growth hit a brick wall in October and early November after a second round of partial (or full) lockdowns were imposed, with even the ECB warning that Q4 GDP may turn negative after the record rebound in Q3, it was only a matter of time before the US - which is now experiencing a second round of creeping lockdowns across the coastal states - suffered the same fate. As we showed earlier, the Citi econ surprise index has clearly pointed the way, having swung sharply lower (as one would expect after the biggest - and shortest - economic collapse since the Great Depression) in recent months, as the economy caught up to trendline on the back of trillions in fiscal stimulus. Furthermore, with the US entering 2021 without any firm commitment for another much needed round of fiscal stimulus - which we hope everyone realizes is  the only reason  why the economy did not disintegrate in the summer and fall - even as the rising number of covid cases