Wed, 26 May 2021
The real story on Transitory Inflation. No one is focusing on why they’re saying it. It’s all about yield curve control. The US cannot afford higher interest rates. The Fed is controlling yields and real interest rates. Interest on treasury debt cannot exceed 2 percent or we're all scr-wed. It’s a case of Fed jawboning to shape perception and reality. After this fails, they'll have go to policy pronouncements. And when that fails, then they will actually have to do something. The biggest question is, who will buy US government debt when it’s yielding less then inflation? Answer: the Fed. Repo madness strikes again. Reverse repos are hitting record levels, spiking. Banks are over-stuffed with reserves. Lots of interesting stuff going on, setting us up for an interesting month of June. 3 weeks to the next FOMC meeting. |
Wed, 26 May 2021
According to Dean Fanelli, PHD, the vaccine implementation has been a great achievement. It’s time to look back and get a better understanding of where the government, the CDC and Dr. Fauci went wront. We’ve received conflicting signals about lockdowns, masks and social distancing. The CDC went from all masks all the time to no more masks necessary. Perhaps now they’ve gotten it right. School closings were also way off the mark. We also talked about the admin’s desire to give away the vaccine IP to all takers. Probably not a good idea. There’s a complex web of patents and the ability to manufacture the vaccines make such a giveaway difficult and not effective. |
