The 1947-48 experience was truly painful, maybe even terrifying. The US and Europe had just come out of a decade when the worst deflationary consequences were so widespread that the period immediately following quickly erupted into the worst conflagration in human history. Then, suddenly, consumer prices skyrocketed and it left many Americans wondering if there would ever be an end [...]
At first glance, or first exposure to this, there doesn’t seem to be any reason why all these so many pieces could be related. Outwardly, from the mainstream perspective, anyway, you’d think them random, and even if somehow correlated they’re supposed to be in the opposite way from what’s happened. Too much money, they said. It began with the Fed’s [...]
Now it’s the Russian’s fault. Belligerence surrounding Donbas and Ukraine, raw materials and energy supplies to Europe threatened by Putin’s coiled bear. Why wouldn’t markets grow worried?There’s always a reason why we shouldn’t take these things seriously, or quickly dismiss them out of hand as the temporary product of whichever political fear-of-the-day. This isn’t to write that these things aren’t [...]
The world seemed to have everything going for it, for once, everything coming up favorable for the first time seemingly in forever. There were vaccines, financial government interventions worldwide just recklessly chucking money at anyone with a pulse, an end to the pandemic even normalcy right in front of us. What could possibly have messed this up?It was around 11:15 [...]
Balance sheet capacity as an intangible (and deeply misunderstood) monetary property is the biggest motivating factor behind changes in or to the offshore, shadow ledger-money reserve system. The eurodollar. Since it is a distributed ledger shared amongst, and kept by, the big-bank global banking cabal, its members’ ability to expand their own individual balance sheets contributes to the overall increase [...]
With the first Federal Reserve rate hike widely anticipated (all but confirmed) for the March 15-16 FOMC meeting, this means that every one of the bill tenors with the exception of the 4-week are now inside that window. The 8-week maturity moved into it last week, on January 20, so its equivalent yield is now pricing higher alternative money rates [...]
It’s not hard to reason why there continues to be this conflict of interest (rates). On the one hand, impacting the short end of the yield curve, the unemployment rate has taken a tight grip on the FOMC’s limited imagination. The rate hikes are coming and the markets like all mainstream commentary agree that as it stands there’s nothing on [...]
It should be as simple as it sounds. Lower LT UST yields, less growth and inflation. Thus, higher LT UST yields, more growth and inflation. Right? If nominal levels are all there is to it, then simplicity rules the interpretation. Visiting with George Gammon last week, he confessed to committing this sin of omission. Rates have gone up, he reasoned [...]
Dark leverage, that’s the real stuff. In a ledger-based monetary system, money creation comes from expanding leverage. Simple. Clean. Obvious. How it gets done, that’s the genius, the beauty, and the disaster. Call it money of account, or ghost money, fictional currency, whatever. It’s the secret sauce which, when you see it, you just can’t un-see it. This is the [...]
How is that US Treasury rates out in the independent longer end of the yield curve have now “suffered” a seven percent CPI to go along with double taper and triple maybe quadruple (if the whispers are to be believed) rate hikes this year, yet have weathered all of that allegedly bond-busting brutality with barely a market fluctuation? The short [...]
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