The Great Central Bank Distributed Currency Debasement Soft Drop
“I am often asked, ‘what do central banks do?’ Or, a more penetrating question – usually from schoolchildren.” (Sir Jon Cunliffe)
Summary:
· Mr. (Bond)Market is giving the “@1990s” thesis the “Mother of All Likes” with a Yield Curve Bull-Steepener.
· Mr. (Bond)Market’s price action is consistent with a new definition of full employment.
· Mrs. (Equity) Market is estranged from Mr. (Bond) Market, but he is right.
· A happily consummated re-union, of Mr. and Mrs. Market, will give birth to strongly and healthy correlated bond and equity market children.
· He/She/They Gold has the correct global macro view.
· He/She/They Gold envisions a debased currency polycule that is artificially inseminated by Modern Monetary Monopsony Theory (MMMT).
· MMMT is consistent with a new definition of full employment.
· CBDC is fertile ground for monetary artificial insemination.
· The ECB is piloting “Jefferson’s Airplane” with a dose of MMMT artificial insemination.
· The Central Bank of the Ungoverned Kingdom (BOE) confirms that it is in desperate need of MMMT artificial insemination.
· MMMT artificial insemination is a debauched process of digital currency debasement.
· 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.
· The Fed insists that Congress will have the final de jure say over a digital currency debasement process that is de facto already evolving ultra vires.
· The BOJ upholds globally coordinated MMMT, which is predicated on a managed foreign exchange rate system that maintains the appearance of US Dollar strength.
· “Onshore US Swing Producer Status” is becoming a gang of two.
· “Onshore US Swing Producer Status” has swung, offshore, to underline American economic outperformance global-macro fundamentals.
Extracts
· The “@1990s” thesis is getting the Mother of All Likes that rhymes with its history.
(Source: the Author)
· 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.
(Source: the Author)
· Central Bank insolvency is aligning with fiscal insolvency at a rapid pace in the global economy.
· The alignment of central bank and fiscal insolvency promotes the exclusive interest in financial stability policy.
· The interest in financial stability policy will enable the application of Modern Monetary Monopsony Theory (MMMT).
(Source: the Author)
· (Philip) Jefferson Airplane’s soft-landing gear is down, so Fed rate hikes have ended in his log book.
· Jefferson’s Airplane has a fat tail.
(Source: the Author)
· Deputy Hauser, of the insolvent Bank of England, is preparing the precedent for Modern Monetary Monopsony Theory (MMMT) to bail out the insolvent NBFIs.
(Source: the Author)
· Dimon’s Hurrikraine signals that the current inflation narrative is less important than what lies beyond it.
· Dimon’s Hurrikraine implies that heavy-handed central bankers will need to apply their heavy hands with ambidextrous flexibility, going forward, with the further loss of their credible commitment.
· Dimon’s Hurrikraine correlates with the emerging strong US Dollar growth headwind narrative nudging for a global managed trade/FX regime solution.
· Now would be a good time for the Fed to start some thought leadership on a new definition of full employment.
· The Federal Reserve and Federal Government are separately fighting inflation, whilst simultaneously fighting each other.
· It’s Slam Dunk time for the Biden New Multipolar World Order.
· The Fed is still Qualitatively Tightening whilst Quantitatively Easing to enable a soft landing.
· The Fed is hiking interest rates to salvage credible commitment rather than to fight inflation.
· The Fed is still more interested in MMT than it is about conventionally fighting inflation.
· The Fed’s continued interest in MMT confirms that its real mandate is financial stability policy rather than its dual mandate.
(Source: the Author)
· Appositely, BOJ Governor Ueda, has, uncoincidentally, proselytized the Modern Monetary Monopsony Theory (MMMT) Libretto for, insolvent central bankers to follow in, the Higher for Longer/Tighter for Longer costume drama.
(Source: the Author)
· American “Swing Producer Status” is, effectively, “Texas Swing Producer Status”.
(Source: the Author)