#Brimmer’s Law: Giving Credit Where (And When) It Is Due, Whilst Tightening Monetary Policy, And Still Paying Unto Uncle Sam What Belongs To Uncle Sam ….
“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 IMF’s sponsored debate, about central bank monetary policy framework reform, has shifted back to the 1970s.
· Brutal application of “Volcker Doctrine” is being reviewed and revised for contemporary Polycrisis fundamentals.
· “Brimmer’s Law” is the rational explanation of the Fed’s current “absurd combination” of “Quantitative Tightening” and “Qualitative Easing”.
· Applying “Brimmer’s Law” may lead to the soft landing that the blind application of “Volcker’s Law” precludes.
· Contemporary “Brimmer’s Law” includes sectoral/national security parameters in addition to credit ratings.
· The “Guardians”, of “Brimmer’s Law”, feel confident enough, in their observance, to quantitatively tighten global US Dollar liquidity again.
· In compliance with “Brimmer’s Law” canon, and its “Guardians’” recent edict, the New York Fed has quantitatively tightened, US Dollar liquidity, for a qualitatively selected cohort of counterparties.
· The Fed is now applying Patriotic Monetary Policymaking, by Qualitatively Easing, via the FHLB, to sustain the US housing market, which is consistent with Political Monetary Policymaking on the Democrats’ Presidential Cycle timeline.
· In pompous circumstance, the Viceroy of God’s Own Country decrees that Charles Rex (III)’s Fragmented Ungovernable Kingdom (F-UK) shall, henceforth, be re-entitled the Unicorn Kingdom (UK).
· Under oath, the UN declares that the Ungovernable Kingdom (UK) is committing a crime against humanity.
· The Ungovernable Kingdom’s (UK’s) crime against humanity, effectively, breaks the tie that binds the Special Relationship together.
· The Ungovernable Kingdom (UK) is, effectively, a pariah with predatory diplomatic, and economic, policies in transition, from being the “Poor Man of Europe”, to becoming the “Aspiring Poor Man of Asia”.
· The “Call of Duty” in the Perfidious Albion betrays allies rather than “national interest”.
· In the Perfidious Albion, “national interest” is for sale to the highest non-allied foreign bidder.
· Perfidiously procrastinating, about UK regional interest, whilst, physically, pimping UK “national interest”, globally, will provoke the anticipated Populist rebellion against perceived “Foreign Capital” and the government that enables it.
· The “Bitter Pill” of accepting being “worse off”, in order, to be cheaper to pimp out, to “Johnny Foreigners”, is, highly unlikely to be swallowed, whole, in the Unicorn Kingdom (UK) aka the Ungovernable Kingdom (UK).
· The “Bitter Pill”, of universally suffered poverty, is rich hypocrisy, since it comes from an insolvent central bank, that created the poverty, through the inept application of “Murphy’s Law”, during COVID, that now precludes the future application of “Brimmers’ Law”.
· The Food Bank of England is Qualitatively Easing in lieu of monetary policy easing from the Bank of England.
· The Viceroy of God’s Own Country’s “Call of Duty” is in his party’s “national interest”, in the General Election, hence, his willingness to risk a Conservative Party split by wavering from strict Brexit protocols.
· An elevated probability of a Conservative Party split is causal of an elevated probability of a Grand Coalition of the Right at election time.
· In the EU, national interest is not for sale, it is conflicted.
· The EU’s anti-climactic preserved fiscal status quo increases the climacteric probability of Fragmentation.
· The EU’s new fiscal compact is a bet that the global and Eurozone economies return to pre-COVID/pre-GFC modalities over the next four years.
· The EU’s new fiscal compact is contradicted by the BIS, the IMF, US “Friend-Shoring” etc. etc. etc.
· The ECB is only one year behind Key Signals in the discovery of the perverse monetary policy tightening effect of Oligopolist Greedflation fed by fiscal and monetary policy excess.
· “Ill-advised” OPEC+ spot price takers, and short-term inflation expectations, face further backwardation pressure from the “Custodians of Brimmer’s Law” cutting global US Dollar global liquidity output.
· The earnings season confirms that US Big Oil Inc. has right-sized, and “Friend-Shored”, to an aggressively independent price-competitive position as a Swing Producer.
· US Big Oil Inc. has confirmed that America has successfully pivoted away from risks in Ukraine, and the Middle East, to a position of energy security from which to face China.
Extracts
· “Cold Amazon” Vice Chair Brainard reminds that Fed monetary policymaking will always put patriotism before the dual mandate.
(Source: the Author)
· The Biden re-election campaign and global agenda, for 2023, are funded and loaded.
· The funded/loaded Biden re-election campaign will provide the assets for “the greatest Federal case of money laundering (and wire fraud), in US history, to occur, in 2023, on the Fed’s balance sheet (not on FTX’s)” aka the Fed’s myth of Insufficient Bank Reserves.
· The funded/loaded Biden re-election campaign will also provide the assets, and a Global Mandate, for the agency of the Masters of the Asset Class Universe.
(Source: the Author)
· UK change management’s attempt to play the Anglo-Saxon “Balance of Power”, to Macron’s “Balance of Power”, risks being viewed as “perfidious” in both Washington and the Elysee Palace.
(Source: the Author)
· For the “Record”, the Bank of England is the biggest fiscal drag on the UK Economy.
(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)