This promises to be an interesting and volatile week on the markets! A number of central banks will adjust their interest rates and loosen credit conditions further. The interest rate trend is already pointing downwards, as the bond markets are setting monetary policy with rapidly falling interest rates across the yield curve! Most notably, the Federal Reserve will cut 25 or 50 basis points on Wednesday. The fun part of the liquidity cycle begins now as the global money supply is already growing strongly!
Do they have have any other other option than to fill the market with loads of debt? This is the beginning of a debt spiral .
reply
The government makes the debt. The Fed just buys their treasuries. Lowering interest rates just means they're gonna buy more of it.
reply
149 sats \ 1 reply \ @TomK OP 15 Sep
There's still immense hunger in the world to get more us colateral. Don't underrate that
reply
Not really. The fact that the Fed lowers the rate is evidence of relative low demand. There's not enough buyers. The dollar is just the best looking horse at the glue factory.
reply
That's really obvious now. Let's see where they'll sink their debt in the coming months. *Tether?)
reply
I've had this bookmarked, locked and loaded since 2021.
I knew I'd get to post it again eventually
reply
reply
To be honest, I couldn't care less about what they'll do, but this graph is pretty neat 🤠
reply
S.o. at Bloomberg really know how to use 'paint'
reply
This game is too easy; just will never end becauss the Fed will never stop their printers.
reply
Now with the issue of elections, everything is relaxed to keep the voters happy, the problem comes later but that does not matter to them.
reply
Short-term measures to boost public sentiment ahead of elections can sometimes lead to long-term challenges.
reply
It 'always' leads to 'challanges' as the level of monetary debasement needs to grow
reply
BRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR
reply
Jerome, is it You?
reply
Yeh. This is my bitcoin side that wakes up in the weekends. You know I already know the whole fiat thing is a total sham, but I can't say so cause the whole thing will crash uncontrollably once I say the words. I can't do anything about it. I inherited the system from my predecessors. So sorry. Jekyll Island was also unavoidable. If there's a honey pot, somebody is going to jump on it and capture it. It's our animal nature. Anyway, best of luck to you all. Protocols not honeypots.
reply
Thank You. Nice words on a lovely Sunday afternoon.
reply
Everyone is so focused on the FED but in reality they are just reacting to the market, the FED is just a psyop, and not controlling anything!
reply