Friend-Shoring Is Global, Charity Begins At Home, And Brimmer’s Law May Go Global At Sintra

“In my own view, a central bank should not be indifferent to the changing composition of bank credit.” (Fed Reserve Board Governor Andrew Brimmer)

(Source: FT.com, caption by the Author)

Summary:

·       The Polycrisis is structurally embedded between a BlackRock and a Hard Place.

·       “Wagner’s Gotterdammerung” venue moves from Bayreuth to follow “Prigozha and the Wolf” at the Bolshoi.

·       The EU’s ability to successfully execute its own Friend-Shoring strategy is significantly weakened because the bloc is not a unitary federal state.

·       EU Friend-Shoring, like USA Friend-Shoring, is initially inflationary and may, subsequently, be disinflationary after a more extended period than intended.

·       The ECB may be forced to address the inflationary component of EU Friend-Shoring with financial instability impulses.

·       European financial instability may create the ECB’s desired financial sector consolidation, a pre-requisite for and pre-cursor to European Federalism.

·       Tighter Fed financial stability policy will drive the next leg of the Great Rot-AI-tion.

·       Chairman Powell’s semi-annual testimony was a testament to Brimmer’s Law.

·       The ECB’s Sintra version, of Jackson Hole, may testify Brimmer’s Law.

·       The ECB’s Sintra version, of Jackson Hole, may also testify to the replacement of central bank balance sheets with “Master of the Asset Class Universe” AUMs as the future agency of global liquidity, inflation, and financial instability.

Extracts

(Source: the Author)

(Source: the Author)

(Source: the Author)

(Source: Bloomberg)

·       Prompted by the rules of engagement, in Ukraine, the EU has finally complied with US Friend-Shoring protocols on China.

·       A massive allied “Techno-Economic War” fiscal stimulus has been enacted, along mutually reinforcing Friend-Shoring supply chain lines, to the exclusion, and economic loss, of China.

·       The uncoordinated, sub-optimal, EU response to US Friend-Shoreporation highlights the need for deeper European political and economic integration.

(Source: the Author)

(Source: Bloomberg)

·       Through the process, known as the “Great Rot-AI-tion”, Mr. Market is price-discovering the intrinsic value of the AIsymmetric P/E multiple expansions in “Techno-Economic War” SAIfe HAIvens.

(Source: the Author)

(Source: Bloomberg)

·       “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.

(Source: the Author)

(Source: investing.com)

·       The semiotics (and lack of substance) of Biden’s photogenic Ukraine Surprise support Harris’s War Crimes velleity and the subcontracting of US foreign policy to US Inc. and the Masters of the Asset Class Universe.

(Source: the Author)

·       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)