When I speak to leaders from all walks of life, I feel like people are paralyzed right now. They note that inflation is returning in earnest for the first time in decades, forcing central banks to raise interest rates at a rate not seen since the early 1980s, and financial behavior marks a fundamental break with the past. But they don’t act. After living with easy money in their hands for so long, they find it hard to imagine functioning any other way. There’s a term for this state of mind: zeteophobia, or the paralysis in the face of decisions that could change the course of your life.

“There’s a term for this state of mind: zeteophobia, or the paralysis you feel when making decisions that could change the course of life.”

So many people continue to act the way they used to, hoping that somehow they don’t have to deal with the change. Assuming central banks will come back to the rescue anyway, investors continue to pump money into where it’s worked for the last decade — tech funds, private equity, and private equity risk. Governments continue to borrow to spend and owners refuse to sell as if easy money is about to return.

But the monetary tightening is not a temporary shock. The new inflation norm is closer to 4% than 2%. Interest rates will therefore not fall to zero. As this situation solidifies, the tycoons, corporations, currencies and countries that thrived on easy money will be squeezed out to give way to new winners. Some things will improve. The days of digital coins and pompous TV shows […]

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