FatDuck3
Sep 25, 4:34 PM
$SLV $GLD $JNUG $B $NEM
More twisting themselves into a pretzel here.
Bank capital → more lending → more deposits → more credit creation but w/M2 still expanding , the fed having in total purchased in less then a yr
$358,873 Billion of T-bills, which is more than they purchased during COVID. These actions are creating the conditions for easy monetary policy NOT restrictive. The credit creation & M2 expansion is creating INFLATION
What is happening has happened too many times before. The main introduction was Sept 16-17, 2019 & lasted until covid emergency rate cuts in March-April. The mechanic of this pretzel: You give the Fed
$100 overnight → Fed gives you
$100 worth of collateral → next day Fed gives you back ~
$100 + interest, and you return the collateral.
Sounds really "restrictive" right ? This economy is in a permanent state of money creation & expansion along with inflation which is here to stay elevated
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