#Brimmer’s Law (2): Don’t shoot the Central Banker, shoot his/her/their balance sheet …
“In my own view, a central bank should not be indifferent to the changing composition of bank credit.” (Fed Reserve Board Governor Andrew Brimmer)
Summary:
· The well-capitalized/solvent “Masters of the Asset Class Universe” are blaming bond market volatility, rather than the insolvent central banks that created it, for the demise of the 60/40 portfolio.
· The well-capitalized/solvent “Masters of the Asset Class Universe” have not thanked the insolvent central banks for transferring monetary policymaking functions to them via the agency of elevated bond market volatility.
· The Swiss National Bank’s (SNB’s) current solvency implies the optimal structure, for solvent central bank balance sheets, and “Masters of the Asset Class Universe” portfolios, in the IMF’s new Structural “Fragmentation” monetary policy framework paradigm.
· Through applying “Brimmer’s Law”, the Fed is converging on the optimal new Structural “Fragmentation” monetary policy framework balance sheet.
· IBM’s recent AI, structural (productivity-driven) strategic transformation has just tipped the Fed’s balance of risks in favor of its employment mandate.
· Jeremy Hunt’s pariah dog hunts, for global pariahs, with a light-touch/no-touch governance and regulatory regime.
· Jeremy Hunt’s pariah dog “butlers” the Perfidious Albion’s “Call of Duty” to sell “national interest” for the consideration, of party funding, to foreign masters.
· Jeremy Hunt’s pariah dog’s kennel is viewed as a casino, in which the House of the Taxpayer loses and the Master of the Asset Class Universe punter wins.
· If the preliminary results were indicative, then, the Ungovernable Kingdom (UK) will suffer weak coalition government outcomes from a general election.
· President Macron’s cold glass of Hemlock tastes like the Guinness that will toast a United Ireland and President Biden’s re-election.
· US Inc. has already begun to “Friend Shore” a United Ireland while leaving the UK waiting for a bilateral trade deal.
· Mr. Market is dynamically price-discovering the “Platts Brent Tweak”.
· In discovering the “Platts Brent Tweak”, Mr. Market will price-discover US Swing Producer Status dynamically.
· In discovering US Swing Producer status, Mr. Market will dynamically price-discover the Backwardation of higher short-term inflation expectations onto lower long-term inflation expectations.
· The latest FOMC decision confirms that the “Guardians of Brimmer’s Law” feel confident enough to “Quantitatively Tighten” global US Dollar liquidity, again, and “Qualitatively Ease” for qualitatively selected “Friend-Shoring” counterparties.
· Not all US Regional Banks are created equal, in US “Friend Shoring” terms, even though they may rank pari passu in “Brimmer’s Law” application terms.
· The latest Governing Council decision confirms that the ECB understands, the negative implications of, the fact that it is “Quantitatively Tightening”, one year behind the Key Signals “Oligopolist Greedflation” curve, and remains hoisted by its single mandate petard.
· The WHO downgrade upgrades the Whodunnit as the only COVID-related vector available to Polycrisismakers.
Extracts
· BlackRock’s AUMs will replace the Fed’s balance sheet as the main fiscal and monetary policy driver of US economic policy.
(Source: the Author)
· Marshall Wace is betting against the, UK Taxpayer-Owned, “House of the Aspiring Poor Man of Asia”.
(Source: the Author)
· OPEC’s “ill-advised” response to the “Platts Brent Tweak” reinforces the doctrine and dogma of US Friend Shoring, whilst, strengthening and rewarding the Exorbitant Privilege.
· OPEC’s “ill-advised” response to the “Platts’ Brent Tweak” makes the US economy relatively stronger than its trade partners and adversaries.
· The USA has been afforded Swing Producer status, hence, the opportunity to influence short-term inflation expectations in addition to even greater influence over long-term inflation expectations.
(Source: the Author)
