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credit-based currency

TIC for September: Not Repo But ‘Further Flaws’

By |2019-11-19T12:15:42-05:00November 19th, 2019|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

The Treasury Department’s TIC for September 2019 finally arrived yesterday. Two months in arrears, it’s often torturous having to wait for the detailed cross border bank figures to show up for particularly noteworthy months. You might remember September for something going on in repo, and TIC is right where we’ve been tracking (trying to) global repo and collateral flows since [...]

TIC Points To ‘Dollar’ Redistribution As Much As Possible Supply

By |2017-12-18T12:59:25-05:00December 18th, 2017|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

We ended last week with a clear sign that global “dollars” are in (escalating) shortage. I would write “again” with that sentence but there is every indication that said shortage never really ended. It’s not like last year’s “reflation” was a switch from insufficient supply to sufficient, rather it was a relative change to a degree that isn’t easily established [...]

Chart of the Week: …ummmm

By |2017-12-15T12:53:42-05:00December 15th, 2017|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Back in early October, I noted that repo fails had jumped above $250 billion (combined “to receive” and “to deliver”) for three weeks straight. That wasn’t an auspicious result, as sustained collateral problems like that don’t correlate to happy things. It all began the week of September 5, in what seemed like a minor one-day nuisance over the 4-week bill [...]

Didn’t Notice the Proposed Changes To the SLR? Don’t Worry, Most Markets Didn’t Either

By |2017-07-11T16:14:20-04:00July 11th, 2017|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

The US Treasury released its first report (under Trump) on re-examining financial regulations and their impact on economic growth. The publication was little noticed because most people don’t much care about Supplemental Leverage Ratios (SLR), though they should. For decades, regulators allowed banks to operate under Basel rules as if capital ratios were sufficient criteria for identifying risks, only to [...]

The Implications of Federal Reserve Accounting in ‘Missing Money’

By |2016-01-26T16:32:00-05:00January 26th, 2016|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Someone emailed me this article published at Yahoo!Finance that purports the Fed’s tightening is going to send stocks soaring, the DJIA mentioned specifically heading toward 25,000. The way in which this thesis was derived is the object of inquiry, starting with the belief that QE4 (QE5 by my reckoning) is forthcoming. This is not due to the Fed realizing its [...]

Beyond The Semantics of ‘Missing Money’

By |2016-01-26T11:51:53-05:00January 26th, 2016|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Economists had noticed by the mid-1970’s that what they thought were steady money relationships with the economy had broken down. This divergence was not slight; how could it be given that the era still stands today as the Great Inflation? Ostensibly, a great deal of research on the topic was devoted to monetary policy implications which is a direct assault [...]

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