Reverse Repo Madness

Is this the work of a serious artist? And here’s Tyler showing you what’s ahead: https://www.zerohedge.com/markets/25-trillion-reverse-repo-year-end RRP volume is quickly approaching $1 trillion a day, with today’s reverse repo usage hitting the second highest on record at $987.3 billion and just shy of $1 trillion. And with QE still running at $120 billion a month,Continue reading “Reverse Repo Madness”

If it’s somethin’ weird an’ it don’t look good

If there’s somethin’ strange in your neighborhoodWho ya gonna call?(Ghostbusters!)If it’s somethin’ weird an’ it don’t look goodWho ya gonna call?(Ghostbusters!) With the “Federales” talking up more lockdowns, their Ministry of Truth expanding and formalizing their diktats to their all-too-enthusiastic oligarchical cronies, and the casino face-planting while inflation steps up, it makes you wonder: howContinue reading “If it’s somethin’ weird an’ it don’t look good”

Don’t Fear the Reaper

Tim Knight shares the setups: https://slopeofhope.com/2021/07/a-new-ally.html I said over the weekend that, “It’s been a long time since I’ve felt so energized about the stock market. Bit by bit, things are truly beginning to break down.” The 900 point drop on the Dow I am staring at right now helps explain why. This morning hasContinue reading “Don’t Fear the Reaper”

“The way to crush the bourgeoisie is to grind them between the millstones of taxation and inflation”

Vladimir Ilyich Ulyanov aka Vladimir Ilyich Lenin Total household deposits have reached an all-time high level approaching $4.2 trillion and appear to be exceeding escapte velocity. As reported in Wall Street on Parade, Senator Cynthia Loomis (R-WY) asked Chairman Jerome “Wizard of Oz” Powell what he thinks will happen to inflation if even a fractionContinue reading ““The way to crush the bourgeoisie is to grind them between the millstones of taxation and inflation””

First Real Estate, Then Oil, Next is Food

The quantity of USDs in circulation has been growing at an accelerating rate since the JFK/LBJ Guns and Butter program. The bill came due when Nixon came along. One option was to cut spending and raise taxes to pay off the debt. Nixon took the other option and closed the gold window giving rise toContinue reading “First Real Estate, Then Oil, Next is Food”

Peak Population – Sow the Wind, Reap the Whirlwind

Chris Hamilton of Econimica shared two graphs reproduced above that summarize all we need to know about macro trends (see https://econimica.blogspot.com/2021/04/ever-fewer-people-need-ever-more.html). You don’t need the usual “talking head” on Squawk Box, or “insights” from some economist to explain the role of “economic slack”. It’s simple physics: wage-generating population (and, households), and money stock. All thereContinue reading “Peak Population – Sow the Wind, Reap the Whirlwind”

Dot Com 2.0

Per Tyler Durden: https://www.zerohedge.com/markets/non-profitable-companies-implode-amid-flashbacks-dot-com-crash At the start of February, when the dual short squeezes of option gamma and WallStreetBets meme stocks were all the rage, a chart from Goldman indexing non-profitable tech companies was making the rounds across Wall Street desk; it showed the sector’s tremendous ascent since the Fed’s panicked response to the covidContinue reading “Dot Com 2.0”

Hot Money, Unraveling Economy

On St. Patrick’s Day, Charles Hugh Smith succinctly summarized the melt-up of the US economy (https://www.oftwominds.com/blogmar21/dead-money3-21.html) In the era of widespread prosperity in the 1960s and 1970s, the velocity of money ratio remained in a band between 1.7 and 1.8, moving up toward 2 in the inflationary late 70s as it made sense to tradeContinue reading “Hot Money, Unraveling Economy”

Another Week, More Repo Madness

As discussed in Bloomberg: https://www.bloomberg.com/news/articles/2021-03-08/u-s-bond-traders-stung-by-selloff-eye-inflation-data-auctions “The 10-year and 30-year auctions on Wednesday and Thursday will be closely watched as litmus tests, with weak demand likely adding fuel to bearish sentiment,” TD Securities Inc. rates strategists Gennadiy Goldberg and Priya Misra in New York, wrote in a note to clients published Monday. “Note that the cheapeningContinue reading “Another Week, More Repo Madness”