Jorma

Cliffs

So a year ago the RRP slush fund was at $2.3TN so oops, guess the Fed won't need to do QE after all. In fact QT just kept on going. Well the slush fund is down nearly a trillion bucks now and $1.4TN is still a hefty sum but it can't be counted on go to fill a sudden hole like SVB. The Fed and FHLB dumped $700bn there however and presto, problem solved. I don't see why we can't have another year of the same. The same being no need to start QEinfinity. Eventually there is going to be QEinfinty we can agree? Right? Besides nobody is against it. Hell, I'm not sure I'm against it.

OMG we haven't been this low for 3 weeks.

What a bore. I just stare at the weekly and monthly TNX and DXY charts. At this juncture do they want King Dollar? I guess it depends on who they are but the banks always opt for more money and this rally in rates is getting long in the tooth. Maybe it won't be in their hands going forward though.

It isn't market efficiency, it's liquidity sufficiency.

I've been checking the news like most mornings but I don't see anything unusual. https://duckduckgo.com/?q=world+weekly+news&atb=v348-1&ia=images&iax=images

I'd like to see Jerry and Janet perform Jackson.

This is the 10th trading day of August. Eight of nine have closed red in the ES. That doesn't happen too often.

The Duke Brothers are standing just offstage.

WTF is a buyback program? Oh, the Treasury.

Since the BOE is now absolutely backing the Gilt market and the Fed now arranges the backing of 100% of bank deposits, why in the world or even how can there be a panic? Anyway the saving of the guilt/pound, by printing, has been a blockbuster hit in the markets. Of course.

https://www.youtube.com/watch?v=ZBAijg5Betw&ab_channel=JeanMallart

My mind has been frozen ever since the tax data diverged from the employment data. Since I live in a place where the employment situation is better than it has been since 1969 with plenty of industrial and commercial development ongoing the tax numbers make zero sense, but of course it's one place, Michigan. Still, it makes no sense. My mind freezes up.

Judging by the trends I expect VIX to reach zero and stocks will achieve a permanently high plateau.

Double entry bookkeeping for central banks and banks has just outlived it’s usefulness I’m afraid. It can’t keep up with the demand for money anymore. You know double entry bookkeeping rose with the Age of Reason, but that’s all over per Kellyanne Conway and alternative facts, so why not double entry bookkeeping too? The foundation of Lee’s work, or Noland or others with our odd views, is the balance sheet view of the system. The mechanism. The thing is nobody cares about the balance sheet. Just show us the money. We are muddling through right now until the Fed has to do QE Infinity, because it’s demanded, by everyone. The mechanism isn't a machine. There are no rules. It's human behavior. Meanwhile the melting snow is still roaring down the mountains in the High Sierra’s.