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Tag Archives: quantitative tightening
Changes in Government Deposits and Money Supply
CHANGES IN GOVERNMENT DEPOSITS AND MONEY SUPPLY The US debt ceiling suspension, signed in February 2018, expires at the beginning of March this year. Some commentators are of the view that the US Treasury must carry out special measures if it expects a delay in raising the debt ceiling in March. The Treasury would have […]
A Survival Guide For 2019
A Survival Guide For 2019 How to safely navigate the ‘Year Of Instability’ As the first month of the year concludes, it’s becoming clear that 2019 will be a very different kind of year. The near-decade of ‘recovery’ following the Great Financial Crisis enjoyed a stability and tranquility that suddenly evaporated at the end of […]
We Are Entering The “Quantitative Failure” Narrative
We Are Entering The “Quantitative Failure” Narrative For a decade, the world brushed off any concerns about soaring global debt under the rug for a simple reason: between the Fed, the ECB and the BOJ, there was always a buyer of last resort, providing an implicit or, increasingly explicit backstop to bond prices, in the […]
Monday Musings on Monetization and Markets (or Fundamentals Don’t Matter, Liquidity Does)
Monday Musings on Monetization and Markets (or Fundamentals Don’t Matter, Liquidity Does) Being I’m not an economist nor associated with any financial or investment institutions nor do I have anything for you (dear reader) to buy or sell, I have total freedom to say what I please and freedom to share what I see. In that spirit, I […]
Fed’s Balance Sheet Reduction Reaches $402 Billion
Fed’s Balance Sheet Reduction Reaches $402 Billion The QE unwind has started to rattle some nerves. For the past two months, the sound of wailing and gnashing of teeth about the Fed’s QE unwind has been deafening. The Fed started the QE unwind in October 2017. As I covered it on a monthly basis, my […]
Drain, drain, drain…
Drain, drain, drain… Money from thin air going back whence it came from – circling the drain of a ‘no reinvestment’ black hole strategically placed in its way by the dollar-sucking vampire bat Ptenochirus Iagori Powelli. Our friend Michael Pollaro recently provided us with an update of outstanding Fed credit as of 26 December 2018. […]
Druckenmiller: “The Best Economist I Know Is Saying Something Is Not Right”
Druckenmiller: “The Best Economist I Know Is Saying Something Is Not Right” Stanley Druckenmiller established himself as one of the most successful hedge fund managers of his generation thanks to an uncanny ability for recognizing signals in asset prices that portended an coming recession. So when he warns about rough times ahead, it’s probably worth […]
Weekly Commentary: The Perils of Inflationism
Weekly Commentary: The Perils of Inflationism December 13 – Financial Times (Chris Giles and Claire Jones): “When the European Central Bank switches off its money-printing press at the turn of this year and stops buying fresh assets, it will mark the end of a decade-long global experiment in how to stave off economic meltdowns. Quantitative […]
The Fed Is Tightening More Than It Realizes
The Fed Is Tightening More Than It Realizes Before the 2008 collapse of Lehman Brothers, the Fed’s balance sheet stood at $925 billion—mostly U.S. Treasury securities. After 59 months of asset purchases to push down longer-term interest rates, it had ballooned to a peak of $4.5 trillion, including nearly $1.8 trillion in mortgage securities, in […]
Fed’s Balance Sheet Shrinks The Most Since Start Of QT; QE Unwind Hits $321 Billion
Fed’s Balance Sheet Shrinks The Most Since Start Of QT; QE Unwind Hits $321 Billion On Monday, when discussing the two key, opposing forces facing stocks this week, we said that while on one hand stock buybacks will make a triumphant return, as companies with $50bn of quarterly buybacks exited their blackout periods, and the […]
“Peak QE”: This Is What Share Of The Market Central Banks Now Own
“Peak QE”: This Is What Share Of The Market Central Banks Now Own After a decade of unprecedented liquidity injections by central banks to preserve the western financial system, global QE has peaked. First, the aggregate balance sheet of major central banks started to shrink earlier in the year, a reversal that took investors many […]
Blain: “We Are Finally Approaching The End Phase Of The 2008 Global Financial Crisis”
Blain: “We Are Finally Approaching The End Phase Of The 2008 Global Financial Crisis” Blain’s Morning Porridge, Submitted by Bill Blain “I found Rome a City of Bricks and left it a City of Marble.” In the Headlights this morning – see www.morningporridge.com for some of the stories I’m watching: Debt Leverage: Interesting quote I […]
QE Party Is Drying Up, Even at the Bank of Japan
QE Party Is Drying Up, Even at the Bank of Japan Despite repeated speeches to the contrary. As of September 30, total assets on the Bank of Japan’s elephantine balance sheet dropped by ¥5.4 trillion ($33 billion) from a month earlier, to ¥537 trillion ($4.87 trillion). It was the fourth month-over-month decline in a series […]
The Fed’s QE Unwind Reaches $285 Billion
The Fed’s QE Unwind Reaches $285 Billion The “up to” begins to matter for the first time. The Fed released its weekly balance sheet Thursday afternoon. Over the four-week period from September 6 through October 3, total assets on the Fed’s balance sheet dropped by $34 billion. This brought the decline since October 2017, when […]
The Fed’s In A Box And People Are Starting To Notice
The Fed’s In A Box And People Are Starting To Notice It’s long been an article of faith in the sound money community that the Fed, by bailing out every dysfunctional financial entity in sight, would eventually be forced to choose between the deflationary collapse of a mountain of bad debt and the inflationary chaos […]
