Central Bank Balance Sheets: The New Techno-Economic Warzone
“There’s absolutely, in my mind, no urgency to adjust the policy rate.” (Mary C. Daly)
Summary:
· The correlated CIOgnitive dissonance about the US Dollar, and Gold affirms the view that the former is the global reserve medium of “unsanctioned” commercial exchange but not the global reserve of economic value.
· The “CIOgnoscenti” has, so far, missed the key signal that the Fed intends to lead a developed central bank wave of macroprudential policy easing, in lieu of inflation-challenged monetary policy easing.
· The recently reported poor US bank earnings season signals that it is time for macro-prudential policy easing.
· Kashkari’s framing of Bitcoin, as the Criminally Barbarous Relic (CBRC) is consistent with the observation that the US Dollar is the global medium of “unsanctioned” commercial exchange but not the global reserve of economic value.
· The US Treasury has framed Crypto as the Criminally Barbarous Relic (CBRC).
· As with the Fed’s employment mandate, there is also tangible evidence that the inflation mandate has structurally changed, since the advent of COVID.
· The sticky Agflation component of Shrinkflation is not returning to pre-COVID levels.
· The sticky Agflation component of Shrinkflation is beginning to trend higher.
· Since the sticky Agflation component of Shrinkflation, is an economic headwind, it would be suicidal to tighten monetary policy to suppress it.
· The Fed is more likely to address the sticky Agflation component of Shrinkflation, by applying its Modern Monetary Monopsony Theory (MMMT) stimulus, to the Agricultural supply side, in accordance with Brimmer’s Law doctrine.
· The PBOC is already applying its Modern Monetary Monopsony Theory (MMMT) stimulus, to the technology supply side, in accordance with Brimmer’s Law doctrine and Xi Jinping Thought.
· The PBOC technology-focused application of Modern Monetary Monopsony Theory (MMMT) overtly vitiates Janet Yellen’s balanced growth initiative.
· Japan Inc. will on-shore Taiwan Inc.’s technology global supply chain node by 2030.
· Global “Techno-Economic War” macroeconomic fundamentals mean that G7 central banks will need to follow the Fed’s “Patriotic Monetary Policymaking” example of Modern Monetary Monopsony Theory (MMMT) stimulus.
· G7 “Patriotic Monetary Policymaking” will necessitate the political and fiscal domination of the application of Brimmer’s Law by each central bank.
· The political and fiscal domination of the application of Brimmer’s Law, in each G7country, implies the political and fiscal capture of each central bank by its elected branch of policymaking.
· The German fiscal breach of “Black Zero” will only be an economic stimulus if the Bundesbank caps the rise in yields, with its balance sheet, to prevent the crowding out of private sector consumption-driven economic growth.
· Lethal casus belli is being framed as legal casus belli for Eurozone fiscal and political union.
· The Central Bank (BOE) of the Ungoverned Kingdom (UK)will issue ration cards, in the form of CBDC, to avoid the fiscal war effort crowding out civilian consumption.
· The liability of UK CBDC will be “balanced” by the “asset” of war bonds on the BOE’s balance sheet.
· The Swiss National Bank (SNB) confirms that its unofficial mandate to return to solvency, through financial asset price inflation, takes priority over its price inflation mandate.
· Mary Daly’s “adjust” does not mean cut.
· Larry Summers is on the Key Signals forward curve,
· Mr. Market is on the Key Signals forward curve.
· One hand of “The Authority on Bonds” is on the Key Signals forward curve.
Extracts
· Ill-advised OPEC+ restraint supports US Swing Producer status and US Dollar global reserve medium of “unsanctioned” commercial exchange status.
· The US Dollar is the global reserve medium of “unsanctioned” commercial exchange, but it is not the global reserve of economic value.
(Source: the Author)
· The US Labour market has, structurally, changed since the advent of COVID.
(Source: the Author)
· A “Friend-Shored Japan” will substitute for China’s Belt and Road.
(Source: the Author)
· Japan replaces Taiwan as the first technological, legal, and commercial defense line in the ASEAN Techno-Economic Theatre of War.
· Japan is re-arming its regional allies.
(Source: the Author)
· The Fed’s mission has, hence, structurally, changed, since the advent of COVID, thereby, implying Political and Fiscal capture of the central bank.
(Source: the Author)
· The insolvent Swiss National Bank (SNB) intends to return to solvency by a process of financial asset price inflation rather than real economic price inflation.
· The action of the Swiss National Bank (SNB)is a global risk-on signal for developed economies’, ex-Ungoverned Kingdom (UK), asset prices.
· The action of the Swiss National Bank (SNB) confirms the recent behaviour of “He/She/They Gold”.
· The SNB will also embrace the digital currency debasement zeitgeist of the times.
· Rumour has it that the ECB also intends to return to solvency by the same method as the SNB.
(Source: the Author)