Right up to that point, stubborn inflation and an economy still showing signs of life were expected to force the Fed to continue its inflation fight. But then something broke.

Each successive crisis or government imperative doubles the cost of bailing out the economy. And each bailout creates more dependence and fragility. It allows unavoidable risks to fester and grow.

This is the setup for the hyperinflationary crack up boom - skyrocketing stock prices alongside skyrocketing inflation - I’ve viewed as inevitable ever since the Federal Reserve abandoned any and all constraints on money supply back in 2008.

Now, I know it’s tempting to point to the usual suspects listed above. But they ultimately draw power from voters. Voters that never fail to fall for political schemes, solutions, pandering, and burden shifting.

The past weeks regulatory unwinding of Silvergate, Silicon Valley Bank, and Signature Bank have exposed the extreme fragility of a system far too reliant on free money.

Perhaps the Pivoters saw an FOMC vulnerable to populist political pressure that favored economic growth over price stability. Maybe they knew the U.S. economy was too fragile to handle 5% interest rates leaving the Fed no option but to relent.

Sell those bonds when the price is down, however, and mark-to-market losses eat into the bank’s equity. And given that bank equity typically runs at about 10% of bank assets, equity can get wiped out pretty quick. All it takes is a 10% drop in bond prices to wipe a bank’s equity ledger clean.

Powell wants data? He's about to get it. Here's what's coming down the pike.

The scientific method gave us a way to understand objective reality. Nothing has done more to pull humanity out of ignorance and suffering than systematically observing and questioning our environment to create testable hypotheses. But science doesn’t explain the price of money.