Jorma

The new president of Argentina has a foot planted in every alt economic school around. He's got a lot of feet evidently. What catches the eye is the elimination of the central bank. How? Got me. That is a populist idea that should scare some people straight. The new president has no party really, no way to legislate anything from what I hear. There are always guns.

Isn't the topic today wieners?

Central banks are going to go from tightening to QE overnight, soon.

I had to move someones car yesterday and NPR was on the radio and some guy was explaining that Treasury bond interest rates were determined by supply and demand. Who knew? I mean after 20 odd years of telling everyone that the Fed "sets rates". . I didn't catch the beginning or end to find out how a generation of opinion haver's rejected their primary belief "sets rates" with "supply and demand" overnight apparently without the slightest self awareness. I remember the last time in tuned NPR news on purpose,well almost tune in the News at all. It was the day Household International bought HSBC and the talking head on liberal NPR was so happy and excited like everyone. Everyone was excited. It was sick. Let's see, 21 years. Time flies.

Something like that. The Fed has only begun to print. That is if the system is to survive.

The Fed will provide liquidity at any time, under any party. Even if it comes to pass that the US is a single party state.

There are legions of securities which have found equilibrium at zero.

KISS https://fred.stlouisfed.org/series/M2NS

The music has stopped so why is everyone still dancing?

Yep. Buy death.

Duck Lake Channel into Lake Michigan. No ducks seen.

The duck test. https://en.wikipedia.org/wiki/Duck_test

Every time I start to think about the Dollar and currencies my head starts to hurt. Is there a cure Dr?

McCarthy got an offer he couldn't refuse so Treasury can go right on borrowing for 6 weeks.

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.