Aug. 22 at 7:31 PM
$JNUG $GLD $GDX $B $SLV
"Normal market discipline applies UNTIL policymakers believe the system itself is at risk. At that point, the priority shifts from enforcing the rules to preventing systemic collapse" Meaning "the rules" simply take a "sabbatical"
Now this here is telling & is where a new train of thought comes into play in the minds of too many investors:
➡️Treasury + Fed are negotiating an arrangement designed to lower the Treasury risk premium. Which not only in retrospect is naive but even in real time is silly. Yields are driven by Fed policy, rate expectations & inflation NOT Treasury balance-sheet games. If the govt wants lower yields, STOP running
$2T deficits & disrupting energy supply chains. Buying back bonds while running a
$2T deficit is like taking Ozempic & eating 4,000 calories a day, it not addressing the issue. Inflation WILL BE TOLERATED because the govt needs lower real financing costs & that's what we are watching now
https://www.mercatus.org/research/federal-testimonies/revisiting-treasury-fed-accord?utm_source=chatgpt.com
