ONE CHART THAT SAYS IT ALL = RESERVE BALANCES AT THE FED

Headlines:
10 Years Of Central Bank Printing.
Indefinite Monetary Pathway Unintentionally Re-Invigorates MMT.

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Not Only Does The Above Chart Demonstrate That The U.S. Federal Reserve Truly Executes A “RESERVE” Strategy [especially since 2009]…It Also Displays The Monumental Anxiety + Fear + Panic That Then Gripped Them…In Staggering Contrast To The 25 Years Prior To 2009…When Reserves Were So Modest That They Are Barely Perceivable On The Chart [ironically produced by the St. Louis Fed].

BTW…The Original Pitch Was For A Short Term [12-24 month] Jolt Of QE…A Hyper-Sized Red Bull Stimulant To Economic Growth.

Now…10 Years Later It’s Been Celebrated + Institutionalized + Un-Tethered Globally…With Zero Enforceable Limitations.

So With The Passage Of Time…The Present Normal = The Past’s Distortions …Simply Rationalized By “We Had To Print…What Else To Do?”

The “What Else” = Allowing For Business Failure + The Concept Of Creative Destruction To Take Hold…As Pain Clarifies Focus + Intensifies The Pursuit Of Pragmatic Solutions…Resulting In A Stronger Foundation For More Sustained Economic Growth Going Forward…

Rather Than Simply “Shaking The Money Tree” + Penalizing Savers + Promoting The Uptake Of Debt + Risk…While Adhering To 3 Central Bank Policy Absolutes:

1. Interest Rates Must Go Down
2. Asset Prices Must Go Up
3. Nothing Else Matters

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So In A Contemporary World Full Of Increasingly Fragile Economic + Political  “Snowflakes”…ECONOMIC PAIN IS NOT AN OPTION.

Thus…The Idea Of Modern Monetary Theory [aka “free lunch” economics] Gains Traction.

But Hey…Why Not?

The Prior 10 Years Have Been A “Free Lunch”…For “The Haves” = QE.
Maybe It’s Time To Toss Some Crumbs Toward The “Have-Nots” = MMT.

Because…At Their Core…Both MMT + QE……Are Interchangeable Courses In Money Printing 101.

Class War-Fare = “Game On”…Let The Absurd Battle Begin…

For The Coveted “Money Tree” = Contemporary Economics’ Version Of The Holy Grail.

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Contact The Author: Dominate@GlobalSlant.com

CENTRAL BANKER INFLATION OBSESSION = “HEAD-FAKE”

Headline:
Worst Case Scenario For Global Economy = Legacy Inflation Ramp.

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Central Bankers Continually Lament The Lack Of Inflation To Justify Their Massive Liquidity Injections.

Just Pour Endless Streams Of Money Into The Financial System…And It’ll Eventually Feed Through To The Real Economy…Creating Legacy Measured Inflation.

Well…It Has Not Happened…In Any Meaningful Way [at least how central bankers calibrate inflation] For 10 Long Years.

Yet They Continue To Shower The World Economy With More Dollars + Euros + Yen + Yuan. It Brings To Mind Einstein’s Definition Of Insanity…You Know The Quote.

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Never Mind That Financial Asset Prices Have Massively Launched Up And To The Right…Central Planners Discount That Inflationary Factor…Not A Care In The World…As It Seems To Be Their Singular Policy Objective.

So…The Consistently Confounding Message From All Central Bankers…“We Really Need Inflation…Because Without It…All World Economies Are Screwed…And In Order To Achieve Our Inflation Objectives We Will Do ANYTHING…FOREVER.  UNINTENDED CONSEQUENCES ARE 100% IRRELEVANT.

The Strategy Is Simple = Print Money + Increase Liquidity + Cross Your Fingers…Hoping That It Stimulates A Sustainable Inflation Impulse…Blatantly Ignoring 3 Powerful Global Deflationary Forces:

1. Aging/Slower Growing Population
2. Capital Markets Rewarding Money Shredding Zombie Companies
= Enabled By Central Banker Interest Rate Suppressing Policies
3. Technological Innovation

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Ironically…These Central Planners Likely Know That Inflation Will Not Meaningfully Materialize…And…Despite What They Say…Nothing Would Please Them More.

The Reason = In A Global Economy Swimming In Private + Public Debt…With Bubbly Capital + Real Estate Markets…Any Ramp In Inflation Countered By Higher Interest Rates…Would Necessarily Drain Their Decade Long  Ocean Sized Liquidity Project …Universally Crippling Global Debt + Equity Markets.

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So…How To Counter That?

An Endlessly Delivered Public Relations Message That Inflation Is Dead…Nowhere To Be Found…A Self-Fulfilling Proclamation To Global Capital Markets…Allowing Central Planners To Indefinitely Continue Their Steroid-ed Monetary Policies…Buttressed Further By Inflation Averaging Chatter.

At This Point They Have No Other Option As They Crossed The Point Of No Return Long Ago…Carelessly Continuing Their Desperate Policy Measures.

Any Attempt To Even Glacially Normalize Was Quickly Rejected By Global Capital Markets Late Last Year As Federal Reserve Governors Immediately Realized That It Is Extremely Difficult To Remove Air From An Inflated Balloon…If Not Impossible…And Folded Like A Cheap Suit [Balance Sheet + Interest Rates]…

Tacitly Admitting…They Are Policy “Boxed”…Literally No Way Out.

The New Status-Quo = A Continual Doubling Down Of Existing Liquidity + Monetary Policy Tactics.

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So With A Quick Pivot They’ve “Kicked The Monetary Normalization Can” Indefinitely Into The Future.

Their Contemporary Policy Problems Simply Become Their Successor’s Problems.  And It Seems They Could Not Care Any Less About The Ultimate Outcome For The Global Economy.

Because…If They Actually Did…Their Reckless + Sloppy Policies Would Have Been Halted Long Ago…Rather Than Strictly Adhering To The Demands Of The Equity Market’s BTFD’s.

You See…To Central Bankers The Only Moment That Seems To Matter = NOW…As In The Last Tick In The SPY’s.

Geriatric Day Traders Now Disguise Themselves As FOMC Members Inside DC’s Eccles Building…Quickly Answering + Heeling + Responding To Panicked “Bat-Phone” Calls From Donny T. At 1600 Pennsylvania Avenue…Complaining About Any Stock Market Sell-Off.

Thus Demonstrating…That In The Cesspool Of DC Politics…EVERYBODY HAS A PRICE…EVEN THE FED’S CHAIR + FOMC MEMBERS…NOBODY OUGHT TO BE SURPRISED…BUT CERTAINLY DISAPPOINTED…AS FED MEMBERS FREQUENTLY ATTEMPT TO REMIND ALL THAT THEY ARE NOT POLITICALLY INFLUENCED.

YEAH…SURE…

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Without A Stitch Of Consideration Or Remorse They’ve Clandestinely Transferred Monumental Economic Problems To Their Children + Grandchildren.

What Then Primarily Motivates Them?  It Seems…Only Their Selfishly Influenced Legacies…Teetering On The Fragile Shoulders Of Pathetic Debt Monetization + Money Printing Policies…Merely Creating Artificial Demand For Financial Assets With Fabricated Currency.

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Might As Well “Call It” As It Is…

A Global Economy Drowns In A Galaxy Wide Canyon Of Cheaply Priced Private + Public Debt…Inspired By Extra-Ordinarily Suppressed Interest Rate Policies Concocted By Politically “Bought And Paid For” Central Bankers…That Can ONLY Be Financed By Central Bankers PERMANENTLY “Shaking The Money Tree” + Scooping It Up + Spending It On Financial Assets.

Meanwhile They Audaciously Self-Congratulate While Accepting No Responsibility For The Towering Economic Problems They Both Designed + Executed…The Weight Of Which Will Be Borne By The Generations Behind Them…Of Which…Their Ignorant + Younger Brethren Have No Real Idea.

Ain’t Capitalism Great?

We Are All Fools For Allowing This To Occur.

Contact The Author: Dominate@GlobalSlant.com