Developed Central Banking Tales Of “Holistic” Fiscal Domination, Kleptocracy And A Daring Return To Solvency
“A feat of daring can alter the whole conception of what is possible.” (Reprised by Christine Lagarde, originated by Graham Greene)
Summary:
· Fiscal Domination, by the “Masters of the Asset Class Universe”, is now an asset class in the BlackRock Polycrisis Model Portfolio.
· The Polycrisis Model Portfolio transfers the assets of the US Regional Banks, and the commensurate Fed Reserves, off Balance Sheet, to the AUMs of BlackRock.
· The Polycrisis Model Portfolio will compete, on a more level playing field, for assets traditionally “reserved” for the Federal Reserve Banking System.
· Fed Reverse Repo liabilities with BlackRock will replace Fed Reserves with Regional and Reserve System Banks to sustain the net private credit expansion.
· Fiscal Domination of the Bank of England enabled the crime of fraud behind the great fortunes of the VIP Lane Kleptocracy.
· With no more Bank of England balance sheet, to plunder, the Kleptocracy targets private pensions to lie behind its next great fortune.
· Christine Lagarde has acknowledged that the swift loss of Euro strength has tipped the balance of risks towards Fragmentation over her desired Consolidation/Expansion outcome of the monetary policy tightening process.
· Lagarde dares, to win, by returning the ECB to solvency, while, simultaneously, enabling banking sector consolidation, and, avoiding Fragmentation, by scrapping the interest paid on reserves.
· In theory, a solvent ECB can evade Fragmentation by easing again once banking sector consolidation, during a period of economic weakness, has been achieved.
· At best, the Eurozone has a hard landing, with banking sector consolidation, and, at worst Fragments.
Extracts
· Ex Post-Sintra, the Fed intends to interpret the IMF’s new monetary policy framework edict by sustaining Fiscal Dominance in pursuit of the Friend-Shoring imperative.
· Proposed higher Reserve Requirements must be balanced by a larger Fed balance sheet.
· Governor Barr confirms the Fed’s intention and capability to ‘drive the next leg of the “Great Rot-AI-tion” with tighter financial stability policy’.
· President Kashkari (finally) admits that Stagflation is a financial stability phenomenon.
· A larger Fed balance sheet will provide the taxpayer-backed assets to “layer” with the lossmaking “out-of-thin-air assets” currently causing the central bank’s insolvency.
· The Fed’s commitment, to a smaller balance sheet, means that Reserves and Assets will have to be managed, off balance sheet, by the “Masters of the Asset Class Universe”, going forward.
· US Monetary Policymaking, and Fiscal Policymaking, along with the elected executive policymaking function, will be ‘dominated’ by the non-elected “Masters of the Asset Class Universe”.
· Fiscal Domination, by the “Masters of the Asset Class Universe” is visible in the public domain.
(Source: the Author)
· The Bank of England is the biggest fiscal drag on the UK economy followed by the inept kleptocracy of the Government.
(Source: the Author)
· For the “Record”, the Bank of England is the biggest fiscal drag on the UK Economy.
· Off the record, the Bank of England enabled the greatest central bank robbery of the last century.
(Source: the Author)
· The ECB’s wager raises the probability of recession and Fragmentation in/of the Eurozone.
· Christine Lagarde has the intention, and capability, to turn Fragmentation Risk into the motivation for Eurozone Expansion.
· Lagarde’s expansion strategy is based on a strong Euro.
(Source: the Author)
