Say Cheers To A New Definition, Of Full Employment, And Pay With CBDC
“The financial system is on the cusp of significant change. Central bank digital currencies (CBDCs) are central to this effort.” (Augustin Carstens)
Summary:
· The Boston Fed has raised a glass, half-full, to toast the new definition of (half-)full employment, by facilitating thought leadership.
· The Fed’s new definition of full employment will be “Endogenous”.
· The Fed’s new definition of financial stability risk is “Exogenous”.
· The BIS confirms that digital currency debasement is next on the agenda of developed central banks.
· In order to promote credible commitment, in digital currency debasement, the Fed is trying to destroy the credibility of digital and physical alternatives.
· The Fed’s digital monetary debasement is everywhere and always a balance sheet phenomenon.
· An expanded central bank balance sheet will be the norm and not the exception.
· The Dallas Fed explains why the Fed’s new social media campaign, guidance, optimizes the Signal-to-Noise ratio, in order, to prevent digital currency debasement from becoming digital credible commitment debasement.
· The credible commitment of Chairman Powell, and the FOMC, is in the penumbra of the same shady halo that he has framed his staffers in.
· Powell’s shady halo effect broadens the “Fat Tail”, of guidance, on “Jefferson’s Airplane”, even more, towards an economic stalling angle.
· The Bank of Korea’s digital monetary debasement is everywhere and always a Greenwashing phenomenon.
· South Korea has banned leveraged Non-G7 Risk Off.
· Some EM borrowers are doing so before credit spreads widen further.
· The IMF is preparing for an Asian Debt Crisis rinse and repeat.
· By Royal decree, the “Ungoverned Kingdom” (UK) slides further down, the “Doom Loop”, into the relegation zone, to become even more ungoverned, in order, to be the most competitive “Submerging Markets” economy.
· By Royal decree, in the “Ungoverned Kingdom” (UK), “Glazernomics” is illegal in football but legal in government.
· The ECB begins the countdown to a return to central bank solvency through banking sector consolidation in Spain.
Abstracts
· The Fed’s MMMT artificial insemination will be carried out through a process of evolution of the monetary supply chain.
· The Fed’s MMMT artificial insemination process is consistent with “Brimmer’s Law”.
· The Fed’s MMMT artificial insemination will digitally disintermediate the Federal Reserve System Banks and leave them at risk of not being bailed out anymore.
· Disintermediated Federal Reserve System Bank credit will command a higher risk premium and cry out for FOMC interest rate cuts.
(Source: the Author)
· Chairman Powell informs Mr. Market that he has not price-discovered “Macklem Doctrine” by the desired process of a strong US Dollar, lower oil prices, and lower bond yields, as anticipated from the recent FOMC signaling.
· The broken FOMC signaling implies a loss of credible commitment and, thereby, greater risk to the desired Soft-Landing outcome.
(Source: the Author)
· The BIS proudly advocates for a strong US Dollar whilst coordinating G7 currency debasement in the pursuit of central bank solvency.
(Source: the Author)
· Cognitive Blindness has become Cognitive Arrogance that shoots the central bank messenger, misses the message, and puts the Soft Landing at risk.
· The Fed is in the process of increasing its Signal to Noise Ratio after Mr. Market amplified the denominator post-latest FOMC meeting.
· The IMF confirms that the Fed’s broken signaling has put the central bank’s credible commitment and the Soft Landing at risk.
· The IMF advises that the Fed must improve its signaling on inflation expectations to regain credible commitment and land softly.
· Chairman Powell becomes a Social Media Influencer to frame misperceptions of what “Tighter for Longer” means.
· A successful Fed social media influencing campaign may get “@90s” the missing likes, it deserves, which will, then, lead to the acceptance of “Macklem Doctrine” as self-evident.
(Source: the Author)
· The “Fat Tail”, of Fed communication, on “Jefferson’s Airplane”, gets fatter and dumber through “word and deed”.
· The fattening “Fat Tail”, of Fed communication, infers a heavier economic landing for Jefferson’s Airplane.
· The “Fat Tail”, of Fed communication, on “Jefferson’s Airplane”, has been, prematurely, awarded the Great American prize for procrastination, rather than results.
· Fed procrastination attempts to disguise the tactic of conflating an implicit higher inflation target, with an implicit lower unemployment target, because the latter is less damaging, for central banker credible commitment, under the current tightly-resourced economic circumstances.
· Fed procrastination nudges and frames a new definition of full employment.
· A new definition of full employment would soften the economic landing, of Jefferson’s Airplane, and normalize the yield curve.
· Fed procrastination is an abuse of Congressional dual mandate guidelines for, self-interested expediency and, politically motivated economic agency aka Friend-Shoring.
(Source: the Author)
· The action of the Thai Central Bank confirms the presence of a managed FX regime that maintains the appearance of US Dollar strength.
· The action of the Thai Central Bank is a global risk-off signal for non-developed economies asset prices.
(Source: the Author)
· The Ungoverned Kingdom (UK) has reached the irreversible “Doom Loop” stage, of Uninvestability, that the disingenuous abolition of caps on banker bonuses completely fails to address.
· The UK “Doom Loop” is going to be a phase of “Glazernomics”, for the “Friends-and-Family Shorers”, before they are benched.
· The UK “Doom Loop” is a deliberate policy stance of saving the Government’s finances, and the global position of the City, at the expense of the domestic High Street Banks and the Main Street businesses that they finance.
· The UK Government can’t manage, what it can’t measure, and doesn’t want the reality to be published pre-election.
(Source: the Author)
· Rumour has it that the ECB also intends to return to solvency by the same method as the SNB.
· The Rumoured ECB return to solvency methodology is consistent with the central bank’s wider objective of enabling financial sector consolidation.
(Source: the Author)