Summary

Michael discussed how global liquidity rather than traditional money supply now drives the economic and market cycle, explaining that modern financial systems are highly leveraged and increasingly shaped by funding, collateral and cross border flows beyond central banks. He pointed to tightening liquidity, rising refinancing pressures and deteriorating debt to liquidity dynamics, arguing that these conditions heighten the risk of financial instability while also creating the conditions for renewed inflation as the cycle turns into 2026.

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