It worked well in theory and in practice for a dozen years. But at what is likely to be the most important juncture in our lives, if not in modern history, this indicator failed to warn us. Here’s why that’s terrifying.
We also take a look at the foreign central bank issue and tell why that’s also frightening.
The futures were bouncing around like a pogo stick 15 minutes before the jobs report was posted.
Now is not the time to be nibbling.
$321 Billion
That’s how much cash the Fed will pump into Primary Dealer accounts this week. Guess how much new Treasury issuance there will be over the same period. If you guessed $321 billion, you would be all but correct. It’s $328 billion.
That’s right. The Fed is buying all of the COVID19 rescue financing. It’s inventing imaginary money to pay Primary Dealers for that new supply. The Fed is printing the money to pay for the economic bailout.
And it’s not stabilizing the financial markets. Here’s why, and what it means
The Fed is buying all the new Treasury supply with enough cash left over for the dealers to mount a defense. They aren’t.
The Fed has cut back its direct cash injections to Primary Dealers this week. So far it has bought approximately $92 billion per day in…
The US Treasury will bomb the markets with $288 billion in new supply over the next 7 days.
This supply hits a market where structures are still collapsing and burning despite the Fed’s rescue programs. Those programs only exacerbate and prolong the causes of this disaster:
The US Treasury has begun carpet bombing the markets with hundreds of billions per week in new supply. On the other side of the coin, the Fed is printing double or triple that. How’s that gonna work out for you?
When the margin man came collecting on other stuff, gold got dumped. Once he left, gold came right back. What does it mean for the…
Between today and Thursday, the US Treasury will pound the market with $194 billion in net new supply. The total since March 24 will be $283 billion. And it’s only the first week of it. That will have consequences.
