FED GUY

A recent talk with Joseph Wang. A lot of good info.

 
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I started reading the book, Central banking 101 and so far it’s been a great read to get you understanding how the current banking systems works.

A book like this should be the first thing anyone reads when someone what’s to understand the current monetary systems. It would correct a lot of wrong thinking many people have.
 
It shows they dont understand it either of they think it works.
Their next book can be about how it really didnt work so well haha.

-some expert
 
The party will go on in 2022:

Joseph Wang said:
To the extent this mechanism describes the impact of QE, then there is effectively $1t more of QE coming down the pipeline.
Click to expand...
 
@leo25, great vid. @bordsilver you may find some value in it mate.

Notes of interest for me, times are approximate:

10:50 inflation, transitory or not
16:00 supply, productive capacity and inventories (@heartastack we’ve chatted about the latter)

Then a bit of stuff I couldn’t understand, inverted yields or something, Jeff says the market is hedging a potential crisis, Joseph says the market is only interested in making money so there’s not much in it to provide an economic forecast. Jeff says but they’re turning to bonds, Joseph says that’s coz that’s all they can buy etc etc

A bit about lending “drying up” around the 40 min mark

46 min approx they address the title question and the USD clearing system, which is a web of computerised ledger bookkeeping eg SWIFT, probably pertinent to the financial sanctions on Russia and our chat @lucky luke

59 min effect of cutting or lifting rates

1:07 gold, counter-party risk v liquidity @lucky luke

1:10 The Fed and Russia’s reserves and
Financial WMDs.

1:14 how many rate hikes this year?

And do a quick read up on Eurodollars if you don’t know what they are exactly.
 
Good talk. Closing conclusion was the FED (and i guess every other CB) with end up having a permanent bond buying program (like they now do with Repo) and thus "officially" controlling all rates in the market. Which also means governments don't have to pretend to be budget constrained anymore. :p


 
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