The Fed is quietly taking control of more and more of the financial system and the economy. From Charles Hugh Smith at dailyreckoning.com:
For the past 22 years, every time the stock market whimpered, wheezed or whined, the Federal Reserve rushed to soothe the spoiled crybaby. There are two consequential results of the Fed as savior:
1. The Fed has perfected moral hazard: everyone from the money manager betting billions to the punters gambling their stimmy money is absolutely confident I can’t lose because the Fed will always push the market higher…
2. Organic (i.e. non-manipulated) market forces have been extinguished. There is now only one consequential force, the Fed. All markets are now 100% dependent on the Fed responding to every bleat from every punter who’s recklessly risky bet is about to go bad.
The Fed is now the perfect union of quasi-religious savior and Helicopter Parent: oh dear, our little darling got high and crashed the Porsche? Quick, let’s save our precious market from any consequences!
Authored by Charles Hugh Smith via OfTwoMinds blog, The Fed sees itself as trapped by the incompetence and greed of the other players and by its own policy extremes that were little more than expedient “saves” of a system that is…
… Ethereum is taking the spotlight courtesy of the EIB. In an article published earlier on Tuesday, Bloomberg detailed the…
Many threats are obvious and popularly understood; however, many others are self-inflicted, uncomfortable to acknowledge, or come hidden under the guise of opportunity. These threats can register the greatest damage, as fewer defensive measures have been taken against them. In sum, it’s productive to worry about things that others (e.g., the media, colleagues) do not.
Below are the threats that I believe to be most present and not clear…
2. Crypto’s Assault on the USD …
The US dollars is printed by US government at little cost. It is keeps printing and force its citizens and weaker trading partners to accept its printed papers as its full payments for real, actual goods and full settlements for its debts.
The web site https://www.thebalance.com/who-owns-the-u-s-national-debt-3306124 shows that
Currently, the US government is in debt by 28.1 trillion US dollars. The public holds over $21 trillion, or almost 78%, of the national debt.(U.S. Department of the Treasury. “The Debt to the Penny,” Select “Data Tables.” Accessed April 7, 2021.)
Foreign: $7.07 trillion (in September 2020, Japan owned $1.28 trillion and China owned $1.06 trillion of U.S. debt, which is more than a third of foreign holdings
(U.S. Department of the Treasury. “Major Foreign Holders of Treasury Securities.” Accessed April 7, 2021.)
Forcing some weaker counter-parties (non-US nations) to be in disadvantageous position is coercion. Coercion against foreign nations of other races IS ACTUALLY RACIST.
Systemic Racism can only be dismantled when International Trades are based on real moneys like gold or on direct exchange of goods.
Comment by tonytran2015: No! I disagree here. There will be NO perceivable personal debt if the Fed just keeps printing the US dollars. It will only devaluate the US currency, make it undesirable in world trading and look similar to Venezualan currency.
“We will be in a boatload of trouble when we see interest rate spikes,” Democratic Rep. Dean Phillips says, …
Bond Market Calls Fed’s Bluff With Biggest Short Ever… The last few weeks have seen the short-end of the yield curve panic, pricing in more than 4 rate-hikes from Dec 2022 to Dec 2024… Source: Bloomberg And Bond yields have screamed higher in recent days as fears of rampant inflation and a Fed on the…
That the Treasury market is now projectile vomiting T-notes should come as a surprise to no one.
The action in the U.S. Treasury market yesterday reminded us of the classic “I Love Lucy” episode at the chocolate factory. As the conveyor belt churns out chocolate balls faster than Lucy and Ethel can handle them, they resort to stuffing them in their mouths, their hats, and their shirts. Lucy remarks: “I think we’re fighting a losing game.” (See video clip below.)
That was the scene in the Treasury market yesterday – too much supply and no where to stuff it, causing a sharp spike in yields which set off a stock market selloff that left the Dow down 559.8 points or 1.75 percent on the day, while the tech-heavy Nasdaq fared far worse, losing 478.5 points or 3.52 percent.
Comment by tonytran2015: Your fiat money (Part 2), Inflation is vicious to fiat money users, Why do people buy Treasury Bonds with Negative Interests ?, The “Mean Realizable Present Value” of a future income, QE may be just another scam to steal national wealth,
… Last November, if you bought an Australian government 10-year bond (essentially a government IOU) on the open market, you’d have been lucky to get an interest rate of 0.8 per cent. A fortnight ago, you could get a touch above 1.2 per cent. By Friday, it was just shy of 2 per cent….
…As new US President Joe Biden finalised his plan to splash around $US1.9 trillion on a stimulus package — the biggest on record — the market decided that all this stimulus, both monetary and fiscal, could only lead to one thing; inflation.
And that meant central banks would have to abandon their ultra-loose interest rate policies earlier than expected. The trickle of selling on bond markets suddenly swelled. By late last week, it was a tsunami. Bond prices collapsed forcing the yields — market interest rates — to soar.
The battle was on….