There are those people who will remain convinced forever forward that the Federal Reserve is run by evil geniuses absolutely intent upon robbing the free peoples of the United States of their financial freedom. As evidence, they point to one unsuccessful, controversial monetary policy after another, none of them effective at accomplishing their main task of putting the economic and [...]
Since we highlighted the action in T-bills yesterday and the day before, it’s worth at least mentioning what TIC had to say about the instruments. Foreigners had been reducing their holdings of them not out of growing distaste but rather the opposite. There’s not nearly as many of them, not enough for what’s demanded, the Treasury Department quite purposefully (and [...]
Before getting into the why of the dollar’s stubbornly high exchange value in the face of so much “money printing”, we need to first go back and undertake a decent enough review of the guts maybe even the central focus of the global (euro)dollar system. I’ve written before that the repo market is the lender of last resort, not central [...]
It was chaos. Rumors of not one but two large European banks being pushed to the brink. Money market funds worried about breaking the buck rapidly pulling cash out from under any global name. The FOMC debating what would’ve been a repo-like bailout, even though $1.6 trillion of bank reserves had been “added” to the system. What was most damaging [...]
On March 2, the Bank of Japan leapt into the stock market, Haruhiko Kuroda burnishing his Superman cape as he flew in to rescue the Nikkei. Purchasing a record amount of ETF’s that day, shares in Tokyo surged. It was a clear message, or so everyone thought. Don’t fight the Fed nor the Bank of Japan, not when they can [...]
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