“Holistic” US Fiscal Domination By The “Masters Of The Asset Class Universe”
" You can take this big **** ton of money and buy people, I work for a company called BlackRock…It's not who is the president it's who is controlling the wallet of the president." (Serge Varlay)
Summary:
· 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.
· The currently popular ‘AI’ investment factor is the year-old ‘IAAS’ investment factor from “Speaker Pelosi’s Bottom”.
· There is conflict within the Eurozone, and the ECB, between the escaping Periphery and the predatory stagnating/stagflationary Germanic Core.
· Philip Lane intends to turn Peripheral Strength against itself to support the ECB’s plans for consolidation of the banking sector around the stagnating/stagflationary Germanic Core.
· Lane et al would rather the Eurozone fall into recession than the Periphery escapes the Germanic Core.
· The EU aligns its bureaucratic self-interest, and survival, with the escaping Periphery rather than the stagnating/stagflationary Germanic Core.
· As long as liberal democratic fiat currencies prevail the Polycrisis will continue to be won by those who print them.
Extracts
· The Fed will stop tightening, and then expand bank reserves “Just in Time”, and “Just in Case”, there is a recession.
(Source: the Author)
· Inflation is driving the demand for credit, not vice versa.
· The Fed is now creating balance sheet assets “out of thin air” to cover its losses Ponzi Scheme style.
· The Fed will be unable to sustain its Ponzi Scheme balance sheet asset creation process for the latest signalled intended 125 Basis points of rate hikes.
· Page 14 of 17 in the latest SEPs clearly illustrates the FOMC’s latest dual mandate failure from 2020 to the present.
· The latest Fed Listens event was more significant than the 75-basis points rate hike that it followed.
· The latest Fed Listens event will allow the central bank to re-listen to Esther George’s “constrained quality of monetary policy tightening” Jackson Hole soliloquy.
· The latest Fed Listens event is the precursor to the Fed’s embrace of a new New Normal that enables and facilitates Biden’s supply side “Friend Shoring Slam Dunk”.
(Source: the Author)
· The Federal Reserve Board mission creeps towards a Third (National Security) Mandate in the form of Patriotic Monetary Policymaking.
(Source: the Author)
· Tighter Fed financial stability policy will drive the next leg of the Great Rot-AI-tion.
(Source: the Author)
· Rather than redress the egregious inequity, the Fed intends to transfer its dual mandate, along with its balance sheet, and the usurious monopoly lien on the US taxpayer, to the “Masters of the Asset Class Universe”.
· The executive policymaking function is also “collateral” that will be transferred to the “Masters of the Asset Class Universe”, along with the Fed’s balance sheet, without a return of consideration and accountability.
(Source: the Author)
· Hawkish ECB zeal, for tightening, is in direct conflict with the divergent inflation performance within the Eurozone.
· Hawkish ECB zeal, for tightening, looks like an attempt to maintain German economic hegemony at the point that the global geo-political/environmental fundamentals are existentially challenging it.
· With the Bundesbank insolvent, and Germany Inc. rapidly becoming so, the German government prescribes a depressionary fiscal policy, for the whole Eurozone, so that Germany will not have a competitive disadvantage in the future Great Consolidation.
(Source: the Author)