It is mind-numbing even leaving aside duration considerations in bond investments to lend someone money for 0.50% for a 40-year-term. Seeing value being destroyed by the badly veiled idiocy the central bankers coined as "Q.E." - it must become clear that the inflection point has already been reached in the issuance of money as a measure …
It is mind-numbing even leaving aside duration considerations in bond investments to lend someone money for 0.50% for a 40-year-term. Seeing value being destroyed by the badly veiled idiocy the central bankers coined as "Q.E." - it must become clear that the inflection point has already been reached in the issuance of money as a measure of value.
It is now only created out of thin air to paint over the ever-increasing cracks of the dam holding back what's left of monetary policy.
The amount of near-catastrophical disasters is mounting rapdily since 2008 opened the floodgates to neverending increase of M2. Before Covid lockdowns we had the 2019 reverse repo spike that was barely contained. This ironically was caused by a lack of cash reserves (!) when we know there's too much of it bascially sloshing around, but as we know tied up in yield-seeking adventures of the risky kind more likely than lying around to cover for payments.
And now, the reverse repo will probably be another problem that will be harder to control since all the cash is now in waiting positions - for higher yields. It was a facility that got overblown by the same Fed / Central Bankers devising it to patch over the dam ready to burst:
It is mind-numbing even leaving aside duration considerations in bond investments to lend someone money for 0.50% for a 40-year-term. Seeing value being destroyed by the badly veiled idiocy the central bankers coined as "Q.E." - it must become clear that the inflection point has already been reached in the issuance of money as a measure of value.
It is now only created out of thin air to paint over the ever-increasing cracks of the dam holding back what's left of monetary policy.
The amount of near-catastrophical disasters is mounting rapdily since 2008 opened the floodgates to neverending increase of M2. Before Covid lockdowns we had the 2019 reverse repo spike that was barely contained. This ironically was caused by a lack of cash reserves (!) when we know there's too much of it bascially sloshing around, but as we know tied up in yield-seeking adventures of the risky kind more likely than lying around to cover for payments.
https://en.wikipedia.org/wiki/September_2019_events_in_the_U.S._repo_market
https://www.richmondfed.org/publications/research/econ_focus/2019/q4/opinion
And now, the reverse repo will probably be another problem that will be harder to control since all the cash is now in waiting positions - for higher yields. It was a facility that got overblown by the same Fed / Central Bankers devising it to patch over the dam ready to burst:
https://www.bloomberg.com/news/articles/2022-09-28/fed-reverse-repo-use-hits-fresh-record-as-investors-hide-in-cash
Indeed! In these exact points have been made at length here:
https://thelastbearstanding.substack.com/p/the-furnace
https://thelastbearstanding.substack.com/p/down-the-drain