Tulip Bulbs In Geostationary Orbit—The Insanity Of Space X’s $1.7 Trillion Valuation

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Boy, do we have inflation! And we’re not referring merely to yesterday’s +4.2% Y/Y gain on the CPI and today’s +6.5% Y/Y rise in the PPI.

The ultimate inflationary eruption, in fact, is coming squarely at us in tomorrow’s absurd $1.7 trillion IPO of Space X. After all, the relentless central bank monetary inflation of the last several decades did not mainly end up on main street, and it most surely did not disappear silently into the equivalent of a financial black hole.

To the contrary, it flooded into Wall Street and the linked and related asset markets all around the planet, sending valuations soaring into the financial stratosphere.

And we do mean biblical flood of fiat credit. When the Greenspan era got rolling in 1990, the combined balance sheets of the Big Six central banks (Fed, ECB, BOJ, PBOC, BOE and Swiss central bank) totaled $2.0 trillion and represented just 14% of the GDP of their constituent economies.

But after the print-a-thons of the dotcom boom, the Great Financial Crisis of 2008-2009 and the pandemic era eruption of central bank bond-buying, the combined footings of the Big Six central banks stood at $32 trillion and 68% of their constituent GDP by 2022.