The top 10% holds ~65% of all financial assets but only ~8% of the debt. The bottom 90% holds 92% of the debt but only 35% of the assets. This highly unequal distribution of wealth and debt presents a problem for a politician in a democracy. While the politicians endeavour with great resolve to do all in their power to make the rich richer, they need to get elected by garnering support from the broke plebes. This is why when inflation shows up, it’s a problem.
And this one:
The Houthis have declared they will attack any ship of any nation that supports Israel. They believe Israel’s Gaza war is a genocidal exercise that is being prosecuted by war criminals such as Israeli Prime Minister “Bibi” Netanyahu. In solidarity with their Muslim and Arab kin, they are using $2,000 drones to attack merchant ships. The fact that a cheap drone can completely incapacitate a multi-hundred-million dollar vessel is the definition of asymmetric warfare. Ponder this: in order to nullify a $2,000 drone, the US must launch a missile costing $2.1 million. Even if the Houthis never hit a single target, every drone they send costs the US 1,000 times more to defend. Mathematically, this is an unwinnable war for the US.
As usual, I don't understand most of Arthur Hayes's post, but as usual it's evocative and full of portents.