Volcker Reprised: The Federal Reserve Of DOGE
“I don’t feel so special anymore.” (Donald J. Trump)
Summary:
· The “Smart Money” is framing the Weimar Minsky Moment to talk up their Neutral positioning.
· The physical and food security cost of Neutrality will eat its P&L.
· The Republic of Ireland’s recent O’Minsky Moment illustrates the inflated cost of Neutrality.
· “Mar-a-Lago Consensus” just had its US Minsky Moment reveal.
· The US Minsky Moment is the loss of the Fed's credible commitment.
· The loss of Fed credible commitment is a result of the insolvency that DOGE will exploit.
· The Fed’s credible commitment, and, hence, monetary policymaking is being realigned with DOGE.
· The US Minsky Moment reveals that DOGE is the equivalent of Paul Volcker for the incoming secular economic expansion and bull market.
· Sir Keir (Joseph) of Starmergrad does DOGE, by Clause IV’ing Labour’s Sacred (Cash)Cow, to fill his war chest.
· The sacrifice of the UK’s Sacred Welfare (Cash)Cows is a fatal, self-inflicted, wound for the Labour Party and Sir Keir (Joseph) of Starmergrad.
· The UK Labour Party is the US Democrats’ economic and political lab rat, to test the Anti-Trump vaccine.
Extracts
· The insolvent Bundesbank embraces Germany’s Weimar Minsky Moment of rearmament.
(Source: the Author, March 8th 2025)
· The US Navy and USMC will guarantee global energy security, in return for an “exorbitant privilege”, based on US LNG supply chains rather than less secure legacy global sources.
· North Atlantic Energy Security (NAES) is NATO’s new acronym/eponym, under “Mar-a-Lago Consensus”.
· North Atlantic Energy Security (NAES) directly threatens the BRICS.
· The legacy New World Order would rather comply than be ignored by “Mar-a-Lago Consensus”.
· The implied threat is that the American military will not guarantee energy supply chain security to those producers who sustain monopolistic supply-side constraints without paying for their security.
(Source: the Author, January 25th 2025)
· By executive order, DOGE’s “Streamlined” public sector recession is predicted and accounted for, as a Q1 disinflationary fiscal tailwind for intended transfer to the private sector by tax cuts.
· The Fed has elected to await the outcome of DOGE “streamlining”, and fiscal stimulus privatization, before responding.
(Source: the Author, February 28th 2025)
· “Trump’s Technocracy” is proselytizing “Mar-a-Lago Consensus” into disinflationary, fiscal deficit shrinking, productivity gains.
(Source: the Author, December 7th 2024)
