kind of off topic but have you ever written any explainers about currency swap lines? I've never heard anyone explain exactly how they work, and i cant find anything that explains it well.
This is a dizzying report. Can't say that I understand our crazy economic machinations, but you have laid it out clearly so I can get a grasp. It's a very elaborate hide-the-pea scheme and that seems to be the point. If it was an isolated system, the gambit could likely continue.
The Rube Goldberg Perpetual Machine might be able to spin 10 more dishes and add a yoga pose but climate chaos will end its magic. Then things get very real.
Of course no one knows the precise timeline, but get used to "Faster than expected."
Why is it that more and more our free market economy is starting to look a lot more like an authoritarian country manipulating bond prices, creating incentives for large banks to buy more debt to make more money while the little guy gets $5 bread, if he’s lucky.
What happened to our so called free market economy? It doesn’t seem any different than the financials of Russia or China at this point.
I as a citizen did not sign up for any of this.
How is it that all these baby boomers get to run up all this debt get rich go on a die ina couple years and my generation is forced to foot the bill.
How did we sign up for this?
What happened to a free market economy that Greenspan went on and on about.
It’s time to break things and rebuild. Not putting plaster on cracks in the foundation. This is bullshit.
I've yet to really understand this article. Really insightful, thank you! Any book, article or web where I can look more deeply into how a central bank works, and which mechanism they have? I want to understand the more technical part.
This describes how Bernie felt not long before the end. It's hard work having to cover your tracks and continuously borrow from Peter to pay Paul not to mention tiring and wasteful.
There will be a sense of relief when it cannot continue any more for whatever reason.
"After the crisis turned into calm, regulators removed SLR relief in March 2021. Banks dumped their Treasuries en masse, as it hindered their profitability once again."
I think this is a little bit confusing, cos they didn't dumped treasuries. What they did was to buy treasuries at a slower pace. As long as yoy percent change is positive, treasuries held in banks' are increasing. Correct me if I'm wrong. Thanks in advance.
It sounds like the pressure release valve is inflation. The Fed can always buy enough bonds to keep a ceiling on rates, the question is whether the populace would be ok with whatever inflation rate that would be take to make that happen.
One would think that the Forever Money Spigot would eventually flood every single Financial Asset with Funny Money(TM) to the point of senescence, yet, the Great Ponzi continues. There WILL come a point when other Countries just say "No Mas..." and at that point, you had better have some hard assets on your person or your Year will be a very tough one.
kind of off topic but have you ever written any explainers about currency swap lines? I've never heard anyone explain exactly how they work, and i cant find anything that explains it well.
will do
This is a dizzying report. Can't say that I understand our crazy economic machinations, but you have laid it out clearly so I can get a grasp. It's a very elaborate hide-the-pea scheme and that seems to be the point. If it was an isolated system, the gambit could likely continue.
The Rube Goldberg Perpetual Machine might be able to spin 10 more dishes and add a yoga pose but climate chaos will end its magic. Then things get very real.
Of course no one knows the precise timeline, but get used to "Faster than expected."
Wheeee!
Awesome Work!
Why is it that more and more our free market economy is starting to look a lot more like an authoritarian country manipulating bond prices, creating incentives for large banks to buy more debt to make more money while the little guy gets $5 bread, if he’s lucky.
What happened to our so called free market economy? It doesn’t seem any different than the financials of Russia or China at this point.
I as a citizen did not sign up for any of this.
How is it that all these baby boomers get to run up all this debt get rich go on a die ina couple years and my generation is forced to foot the bill.
How did we sign up for this?
What happened to a free market economy that Greenspan went on and on about.
It’s time to break things and rebuild. Not putting plaster on cracks in the foundation. This is bullshit.
Don't be captured by the narrative, Greenspan never believed in any of that "free-market economy" nonsense he rambled about. When it mattered he did what all bankers do, he bailed out his friends and those "in power". https://www.richmondfed.org/publications/research/econ_focus/2017/q1/federal_reserve
I've yet to really understand this article. Really insightful, thank you! Any book, article or web where I can look more deeply into how a central bank works, and which mechanism they have? I want to understand the more technical part.
This describes how Bernie felt not long before the end. It's hard work having to cover your tracks and continuously borrow from Peter to pay Paul not to mention tiring and wasteful.
There will be a sense of relief when it cannot continue any more for whatever reason.
"After the crisis turned into calm, regulators removed SLR relief in March 2021. Banks dumped their Treasuries en masse, as it hindered their profitability once again."
I think this is a little bit confusing, cos they didn't dumped treasuries. What they did was to buy treasuries at a slower pace. As long as yoy percent change is positive, treasuries held in banks' are increasing. Correct me if I'm wrong. Thanks in advance.
Maybe it's a bit silly question but what will happen with the price of USA Bonds if that intervention happens?
They will rise sharply.
So is purchasing 30 Yr USTs the no-brainer move here? Or is it a question of being impossible to determine an entry point?
So it will be hard to choose maturity because who knows what part of the yield curve they decide to control.
I am buying 5 year duration corps of good companies / companies with moral hazard imbedded in them.
It sounds like the pressure release valve is inflation. The Fed can always buy enough bonds to keep a ceiling on rates, the question is whether the populace would be ok with whatever inflation rate that would be take to make that happen.
Are SDR's ( special drawing rights) still in the mix to counter a sovereign debt crisis, for those who are eligible.
One would think that the Forever Money Spigot would eventually flood every single Financial Asset with Funny Money(TM) to the point of senescence, yet, the Great Ponzi continues. There WILL come a point when other Countries just say "No Mas..." and at that point, you had better have some hard assets on your person or your Year will be a very tough one.