War and Interest Rates

aug 1

• By extension, Russia and China have been the main “guarantors of macro peace”,
  providing all the cheap stuff that was the source of deflation fears in the West,
  which, in turn, gave central banks the license for years of money printing (QE)

• But make no mistake about it: the risk of the Fed hiking to 5% or 6% is very real,
  and ditto the risk of rates cresting there despite economic and asset price pain.