bank reserves

It’s Starting To Dawn On People There Is No Global Economic Dawn Lit By China

By Jeffrey P. Snider|2022-06-21T20:04:45-04:00June 21st, 2022|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Xi Jinping’s earlier “stimulus” promises had originally stimulated the Keynesian-addled imaginations of Western observers and Economists. Hearing only that single word, they didn’t appear much interested in any of its details. Like how Emperors facing increasingly grave difficulties historically tend to stimulate their own capacity for remaining Emperor above everything else.For a very brief moment, as Shanghai reopened, there were [...]

A Volcker Pan Recession

By Jeffrey P. Snider|2022-06-08T20:37:01-04:00June 8th, 2022|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

The Volcker Myth is simple because there isn’t math for it just voodoo economics (to borrow George HW Bush’s phrase). In theory, the FOMC finally realized after more than a decade of currency devastation and its economic, financial, and social consequences, hey, inflation and money. Once Paul Volcker took over in ’79, he acted on the belated realization, seeking to [...]

Xi’s National Security ‘Stimulus’ Reaches The People’s Bank of China

By Jeffrey P. Snider|2022-05-20T17:37:15-04:00May 20th, 2022|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Xi Jinping’s true aim, in my view, isn’t to severely limit the spread of the coronavirus, seeking its ultimate eradication, rather to curtail dissent particularly any views contrary to his handling of China’s increasingly desperate economy. Mao’s Xi’s purpose is to completely eliminate all opposition. This intentional security policy has now been extended to the People’s Bank of China itself. [...]

Collateral Shortage…From *A* Fed Perspective
Collateral Shortage…From *A* Fed Perspective

Collateral Shortage…From A Fed Perspective

By Jeffrey P. Snider|2022-05-03T20:32:04-04:00May 3rd, 2022|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

It’s never just one thing or another. Take, for example, collateral scarcity. By itself, it’s already a problem but it may not be enough to bring the whole system to reverse. A good illustration would be 2017. Throughout that whole year, T-bill rates (4-week, in particular) kept indicating this very shortfall, especially the repeated instances when equivalent bill yields would [...]

Do I Owe Christine Lagarde An Apology?

By Jeffrey P. Snider|2022-04-29T17:59:22-04:00April 29th, 2022|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

I may have to rethink my opinion of Christine Lagarde. It just may be that after helming one serious debacle after another, she – unlike most in her position – may have learned a thing or two about being too quick to call it a day. Premature celebrations were the hallmark of central banks throughout the last fifteen years, including, [...]

The (less) Dollars Behind Xi’s Shanghai of Shanghai

By Jeffrey P. Snider|2022-04-19T20:29:36-04:00April 19th, 2022|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

What everyone is saying, because it’s convenient, is that China’s zero-COVID policies are going to harm the economy. No. Economic harm of the past is the reason for the zero-COVID policies. As I showed yesterday, the cracking down didn’t just show up around 2020, begun right out in the open years beforehand, born from the scattering ashes of globally synchronized [...]

I Told You It *Wasn’t* Money Printing; How The Fed Helped Cause, But Can’t Solve, Our Current ‘Inflation’
I Told You It *Wasn’t* Money Printing; How The Fed Helped Cause, But Can’t Solve, Our Current ‘Inflation’

I Told You It Wasn’t Money Printing; How The Fed Helped Cause, But Can’t Solve, Our Current ‘Inflation’

By Jeffrey P. Snider|2022-04-19T17:38:29-04:00April 19th, 2022|Bonds, Commodities, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Trust the Fed. Ha! It’s one thing for money dealers to look upon Jay Powell’s stash of bank reserves with remarkable disdain, more immediately damning when effects of the same liquidity premiums in the real economy create serious frictions leaving the entire world exposed to the consequences. When all is said and done, the Federal Reserve has created its own [...]

Curve Wars: Short Follows Long Because It’s Never Just One Part or One Curve

By Jeffrey P. Snider|2022-04-04T17:52:51-04:00April 4th, 2022|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Why is the yield curve so steep up at its front? The obvious answer is “rate hikes” and while technically true this leaves out an important set of historical facts. These are that the agency responsible for the rate hikes will, undoubtedly, stick with them regardless of actual conditions on the ground until a forward time when doing so could [...]

Are Central Bankers About To Spike The Ball At The 30-yard line (again)?
Are Central Bankers About To Spike The Ball At The 30-yard line (again)?

Are Central Bankers About To Spike The Ball At The 30-yard line (again)?

By Jeffrey P. Snider|2022-02-22T18:50:50-05:00February 22nd, 2022|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Nobody, and I mean nobody, does premature celebrations like central bankers. When it comes to their non-money monetary policies and the inflation they seek to create from them, time and again officials in every jurisdiction spike the ball at least 30 yards before they reach the endzone. Whenever one or another consumer price measure ticks up, or accelerates dramatically as [...]

The Real Money Doesn’t Spread Inflation

By Jeffrey P. Snider|2022-02-21T18:38:16-05:00February 21st, 2022|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

It was the clash of all clashes, the textbook up against practice in a real world falling apart. Theory’s chance to save the day and prove itself, what should’ve been the legend’s finest hour. Time to put up, or... On the one side, there was the “money” we’re all told is easily created, and on the other what may have [...]

Collateral Shortage…From A Fed Perspective

I Told You It Wasn’t Money Printing; How The Fed Helped Cause, But Can’t Solve, Our Current ‘Inflation’

Are Central Bankers About To Spike The Ball At The 30-yard line (again)?

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