Great quote from Paul Volcker: “We give government the right to print money because we trust elected officials not to abuse that right, not to debase that currency by inflating. Foreigners hold our dollars because they trust our pledge that...

Gita Gopinath Speech 5/7/24 – Geopolitics and its Impact on Global Trade and the Dollar “Looking at global FX reserves, the most notable development during 2022-23 has been an increase of gold purchases by central banks.” “Gold...

Way too much ink has already been spilled about the QRA this week. The fact that such a focus has been played on it suggests that the Overton Window on US government debt growth sustainability is becoming more top of mind for investors and is...

Fed Minutes are out and there are a bunch of hawkish headlines which really shouldn’t be that surprising given I have continued to suggest that Powell doesn’t speak for the entirety of the committee when he gets up there.  Given that I think...

With the US government’s structural fiscal train running full steam ahead with no hope of tax hikes or spending cuts to slow it down, the strike price of the Fed’s “put” to add liquidity back into the market is much lower than...

I put together a post two months ago which walked through my thoughts about how we could see a top in equity markets. You can see it here from March 13th, 2024: How Does the SPX/NQ Bubble Pop? I would say many of the concepts I thought about two months...

The Fed and market bulls have been making the case that the immaculate disinflation/”golden path” could be achieved via a productivity boom that was upon us, driven by the combination of AI and immigration putting downward pressure on...

As everyone is I am sure well aware by now, Treasury is going to give its Quarterly Refunding Announcements this week which will go through the total amount of borrowings the Treasury will do for the 2Q and 3Q, the expected level of quarter ending cash in...

Live shot below of investors searching for the level of the Fed & Treasury “put” strike prices to save them from a risk asset price correction.   View the 1 images of this gallery on the original article Investors, aka petulant children,...

I think one of the major reasons why the Fed has found itself in a box here where both raising rates and cutting rates may make it more difficult to achieve their dual mandate is because of the way they have dealt with the reduction of their balance sheet...