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FRONTLINE Reviews the FED - Jeff Snider Reviews FRONTLINE

The FRONTLINE documentary says the FederalReserve is all-powerful and misunderstood. Jeff points out that is a contradiction, and begins to develop the thesis that the Fed's 'power' is in this realm of "mysticism" and it comes from: persuasion, psychology; not actual defining, identifying, measuring or mapping money, credit, collateral and its distribution.

FRONTLINE critiques the Fed for showering #BigBanks, #BigBusiness and #WallStreet with easy money, which reached neither the real #economy nor the vast majority of Americans. Yes to the latter, but no-no-no-no to the former. Snider did a 95-minute review of this episode and explain why the Fed is not central to money.

See the Snider rebuttal: https://youtu.be/KCpnsDOC7h0
Hear the Snider rebuttal: https://apple.co/3BEryC6
Watch the FRONTLINE episode: https://youtu.be/9RbL8lTsITY
Read the FRONTLINE transcript: https://to.pbs.org/3zC3HBn

Wissam Ali
High Performance Computing Systems Engineer

Sign Posts for Inflation. What to Look for? Summarizing thoughts by Russell Napier, Russell Clark, and Luke Gromen.

I am outlining here sign posts you should be looking for that might turn the tide from disinflation to inflation. I will summarize what each macro thinker is looking for:

  1. Russell Napier: Russell believes that governments will mandate credit rations to the commercial banks for political goals. These political goals are reducing inequality, fighting climate change, favoring small business over big corporates, and the shift from return on capital to the return on labor. He expects money growth to grow on average 10% year over year. He expects inflation will be around 3% to 5%. He expects central banks (including the FED) to be compliant to government wishes. Examples: A) In the UK, usually the longest term fixed mortgage you could normally get was five years. Prime minister Boris Johnson has now created a 25 year fixed mortgage for first-time buyers, offered by banks, guaranteed by the government. B) Bank of Japan has mandated that commercial banks lend at 0% for climate change related lending. C) In the US watch for student loan forgiveness and other social programs for millennials. He expects government bond yields to stay low through central bank purchases and mandating financial institutions to buy more of government bonds. In another words no more free markets. So Raoul Pal's chart of truth turns into the chart of deceit!
  2. Russell Clark: Russell is following China closely. What he is observing is that China is already attempting to have policies that favor wage growth and the return on labor... (More)
Sam ColtExChangemaker
"So called Business Engineer"

Goodbye speech of Andrew Haldane, Chief Economist and Member of the Monetary Policy Committee of the Bank of England is worth your time.

For those that like reading about central banks I think this is a must-read. 

@Milton The Curator  this guy now has more time on his hands (although maybe not) so if you could get him in the interview seat it would be great to hear from him. 

some snippets; 

 

LoL
LoL
Black Wednesday 
Black Wednesday 
On CBDC and StableCoins and how it can change banking
On CBDC and StableCoins and how it can change banking

 

Andrew is an excellent writer so I urge you to read it all. 

https://www.bankofengland.co.uk/-/media/boe/files/speech/2021/june/thirty-years-of-hurt-never-stopped-me-dreaming-speech-by-andy-haldane.pdf

Quantitative Easing: A False God

'The Bond Market is heading down because the Fed is holding rates down,' they say. 'If the Fed got out of the way the bond market would join the yields-can-only-go-up narrative,' they say. And yet if 14-years of past experience is anything to go by what we see is precisely the opposite. Why?

This is part of a longer review by Jeffrey Snider of US Treasury yields and how they reacted to actions by the Federal Reserve across the four liquidity shocks of the past 14 years:
• 2007-09 Global Financial Crisis I
• 2011-12 European Sovereign Debt Crisis
• 2014-16 Chinese Fx Reserves Disappearance
• 2018-20 De-Globalization / Global Financial Crisis II

See It: https://youtu.be/tG9XSzWKRto
Hear It: https://vurbl.com/station/making-sense/
Read It: https://alhambrapartners.com/2021/05/24/no-reason-to-toss-out-low-rates-in-the-inflation-debate-the-repo-rat-rate-fallacy/