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washparkhorn

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Everything posted by washparkhorn

  1. Thomas: “please don’t throw me in that briar patch. But if you insist, well, . . . bye.”
  2. The roadmap for future action by our religious clerics:
  3. Moderates are a greater impediment to justice than Kluxers and their ilk. ~MLK in a letter from the Birmingham jail
  4. The economics of the decision are disastrous. With the Republican gutting of the safety net that existed in 1971 - there are going to be a lot of hungry mouths to feed - if they get fed at all. Unwanted children create unfunded negative externalities.
  5. The owners of the system disagree.
  6. PMI (US and Europe) flashing demand destruction well underway.
  7. If you guys don’t stop buying shit, the Fed will deliver maximum pain until you do.
  8. WSJ fanning the housing bust flames. https://apple.news/AyCy-e0i7Th-3LyUqpVBeSQ
  9. Not really. “Follow the Fed” was “free money” for international capital. That’s how the game is played. Same as it ever was.
  10. “Donald Trump and his allies and supporters are a clear and present danger to American democracy.” - Distinguished Conservative Jurist J. Michael Luttig
  11. Carter nominated Volcker as the Fed Chair and kept his word to Volcker that his Administration would let the Fed remain independent. See https://books.google.com/books?id=ZdIwDwAAQBAJ&dq=Carter+the+white+House+years&source=gbs_navlinks_s
  12. The belief in the Fed Put continues to buoy markets. In other words, there is a lot of money riding on the Fed coming to the rescue if the financial markets squeal loud enough.
  13. RICO was built for cabals like Trump's band of loonies. Especially in Georgia.
  14. I have no doubt that Cruz (or any other Trump sycophant) in the same position as Pence would have declared Trump the winner of the 2020 Election.
  15. Luttig is a conservative’s conservative. Short list for Bush II Supreme Court. His bolstering of Pence helped save the Republic on January 6.
  16. Let me guess - the “Democratic” candidate in this race was an antiabortion centrist.
  17. Markets pricing in inevitably of a recession this morning. Fed: Recession preferred over inflation.
  18. Derivatives remain the unknown risk with these hikes. I have little doubt we will end up in another debt crisis.
  19. It sure looks like a robust contraction in production capacity and efficiency has taken hold. Demand destruction may be the wrong prescription for the current inflation variant.
  20. No one is that dumb. As I have been warning for months, the end of this round of QE (6 trillion cumulatively in MBS and treasury debt) meant the inflated bubbles would become vulnerable. These inflated bubbles had knock on effects (leverage) for riskier debt (e.g., see crypto). Now the Fed is selling and raising interest rates to dry up liquidity in an effort to curb inflation (which was primarily caused by cost-push inflation (supply chain disruptions that increase the cost of goods)). With unemployment relatively low, the Fed’s dual mandate is satisfied by merely combatting inflation via interest rate hikes and balance sheet reductions. These tools create deflationary pressure on overpriced assets. Given the continued supply chain disruptions, there is no justification to keep pouring starter fluid into an overheated economy not firing on all cylinders. It’s a blunt set of tools with a good risk of recession and pain. But the Fed’s mandate to curb inflation is clear and unequivocal. The Fed protects International Capital to maintain the value of the USD as the world’s primary reserve currency. The Fed’s independence allows it to make these painful decisions for those purposes. tldr: the Fed giveth; the Fed taketh away.
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