{"id":53694,"date":"2020-06-15T10:08:53","date_gmt":"2020-06-15T15:08:53","guid":{"rendered":"https:\/\/olduvai.ca\/?p=53694"},"modified":"2020-06-15T10:08:58","modified_gmt":"2020-06-15T15:08:58","slug":"us-money-supply-the-pandemic-moonshot","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=53694","title":{"rendered":"US Money Supply \u2013 The Pandemic Moonshot"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/acting-man.com\/?p=55271\">US Money Supply \u2013 The Pandemic Moonshot<\/a><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Printing Until the Cows Come Home\u2026<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It started out with Jay Powell planting a happy little money tree in 2019 to keep the repo market from suffering a terminal seizure. This essentially led to a restoration of the status quo ante \u201cQT\u201d (the mythical beast known as \u201cquantitative tightening\u201d that was briefly glimpsed in 2018\/19). Thus the roach motel theory of QE was confirmed: once a central bank resorts to QE, a return to \u201cstandard monetary policy\u201d becomes impossible. You can check in, but you can never leave.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" src=\"https:\/\/acting-man.com\/blog\/media\/2020\/06\/Bob-Ross-Powell-6.jpg\" alt=\"\" class=\"wp-image-55278\"\/><\/figure><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Phase 1: Jay Powell plants a happy little money tree to rescue the repo market from itself (from: \u201c<em>The Joy of Printing<\/em>\u201d).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It is easy to see why. Any attempt to seriously reduce outstanding central bank credit will bring about the very situation QE was intended to prevent, i.e., falling asset prices and an economic bust. Seemingly no-one in officialdom ever stops to ask why that should be so. What happened to \u201cself-sustaining recoveries\u201d and \u201cachieving escape velocity\u201d? Could it be the economy is neither a&nbsp;<em>perpetuum mobile<\/em>&nbsp;nor a space ship?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Before we consider this question, here is what has happened since then: shortly after the double-plus-uncool novel SARS-2 corona-virus traversed several ponds and made landfall in the US, Mr. Powell and his fellow merry pranksters decided to water the money tree with super-gro. Or maybe it was hyper-gro:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><a href=\"https:\/\/acting-man.com\/blog\/media\/2020\/06\/1-Total-Fed-Assets-2-ann.png\" target=\"_blank\" rel=\"noreferrer noopener\"><img decoding=\"async\" src=\"https:\/\/acting-man.com\/blog\/media\/2020\/06\/1-Total-Fed-Assets-2-ann-1024x530.png\" alt=\"\" class=\"wp-image-55272\"\/><\/a><\/figure><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">The \u201cQE\u201d roach motel, illustrated by the history of the Fed\u2019s balance sheet.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That is a rather noteworthy bout of inflation. Readers may have noticed that in the realms of finance and economics there has also been an inflation of verbiage describing never before seen extremes.&nbsp; By its very nature, one would normally not expect to hear the term \u201cunprecedented\u201d very often, but it has become disconcertingly commonplace in connection with monetary pumping, deficit spending and debt growth.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>US Money Supply \u2013 The Pandemic Moonshot Printing Until the Cows Come Home\u2026 It started out with Jay Powell planting a happy little money tree in 2019 to keep the repo market from suffering a terminal seizure. This essentially led to a restoration of the status quo ante \u201cQT\u201d (the mythical beast known as \u201cquantitative [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[24143,7783,303,431,6170,661,662,8625],"class_list":["post-53694","post","type-post","status-publish","format-standard","hentry","category-economics","tag-acting-man-2","tag-credit-expansion","tag-fed","tag-interest-rates","tag-pater-tenebrarum","tag-qe","tag-quantitative-easing","tag-quantitative-tightening"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/53694","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=53694"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/53694\/revisions"}],"predecessor-version":[{"id":53695,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/53694\/revisions\/53695"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=53694"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=53694"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=53694"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}