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Fed Falls Further Behind the Rubber Stamping Curve

Meanwhile, the Fed remains egregiously behind the market in rubber stamping market interest rates.  I don’t know why they even bother. Rates are and always have been completely irrelevant until they become punitive in real terms. And even that is a byproduct of the central bank creating a money shortage.

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The Fed is in the process of creating a money shortage now, but traders and their dealers have created their own money temporarily via the cycle of margin borrowing. That has a limited shelf life when the Fed isn’t there supplying an ever increasing backstop. Only the timing of the end is unknown. For that, we rely on the TA.

To understand and profit from the big picture check out the following.

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