When it comes to making sense of the global financial system I always have to ask the question who is benefitting from monetary policy? The recent podcasts from the Financial Repression Authority has provided a good backdrop to understanding the importance of debt markets — and by default the significance of the US DOLLAR as the bulwark of the financial system. The mobility of money or what serves the process of globalization has revealed many of the fragilities of the DOLLAR as a funding vehicle because of the FEDERAL RESERVE’S policies, which allowed all the other world’s central banks to sustain a prolonged period of zero and even NEGATIVE NOMINAL RATES.
Posts Tagged ‘quantitative tightening’
Notes From Underground: Cui Bono? (Who Stands to Gain?)
November 28, 2022Notes From Underground: Recapping the Last Two Weeks
November 20, 2022The day after the FED meeting I sat down with the FINANCIAL REPRESSION AUTHORITY and did a podcast with David Rosenberg and Peter Boockvar. The discussion is still relevant as it speaks a great deal about bond, equity and, in particular, currency valuations. Then on Monday, November 7 Richard Bonugli hosted an hourlong discussion with Brent Johnson and myself, which was also about currency valuations and the precarious global situation of massive debt overhang. Finally, I recorded a third podcast with FRA and Eric Peters about crypto and the possible fallout from the collapse of FTX. There’s lots to digest here but as always I remind readers that the only relevance for traders/investors is to find meaningful trades or investments. Otherwise we are just talking to hear ourselves talk, which is in the very real sense meaningless. Also, it is not always what you make through relevant ideas but the capital preserved by not following the herd.
Click to listen to the Nov. 4 podcast with David Rosenberg and Peter Boockvar.
Click to listen to the Nov. 7 podcast with Brent Johnson.
Notes From Underground: Another Day, Another Podcast
September 14, 2022It was a fortuitous day that Richard Bonugli arranged a podcast with Joseph Wang, author of the Fed Guy and an former employee of the New York Fed’s System Open Market Account (SOMA). The podcast was recorded 90 minutes after the release of Tuesday’s CPI data so there was much to discuss in real time about FED policy, the recent moves in the SPOOs, dollar, commodities and precious metals were all reversed because the MARKETS seemed to have been caught off guard by a much higher number than Wall Street pundits anticipated.
Notes From Underground: Is It George Bailey or Henry Potter?
February 16, 2022Bank of England Governor Andrew Bailey made a ridiculous comment almost two weeks ago and I’d be remiss not to mention it. Bailey issued his own FORWARD GUIDANCE on how to slow the pace of inflation. He suggested that people refrain from seeking big pay raises. It’s astounding that a sitting member of the G-7 Finance Group has the temerity to restrain the AVERAGE WORKER while promoting QE policies that have stoked a serious rise in asset prices for those who own antique autos, stocks, precious metals, art, multiple homes and any other asset class on the planet.
Notes From Underground: This Isn’t the Barron’s Roundtable
February 10, 2022On Tuesday, I sat down with the Financial Repression Authority’s Richard Bonugli and Marc Faber. The last time Dr. Faber and I spoke, there were several profitable investments that evolved from our deep discussion about the global political economy. Give it a listen as we discuss the global central banks and potential profitable areas of investment. Marc has fabulous insights on the global economy and NOTHING is out of bounds. This is a man who finds great opportunities during times of chaos.
Notes From Underground: Bernard Connolly Is Worth a Good Whiskey
February 1, 2022Three weeks ago I recorded a podcast with Bernard Connolly, author of “The Rotten Heart of Europe,” and one of the greatest global macro minds. Utilizing global money flows and more than 45 years of analyzing political economic realities, we at Notes From Underground have tried to unlock some of the “mysteries” of the global financial landscape in an effort to find profitable trading opportunities across myriad asset classes. The blog strives to take into account nuance in order to seek out profitable trades with as low risk as possible. That’s why we’ve always advocated patience in an algo-driven world.
Notes From Underground: I Knew I Would Return
August 2, 2017Last week’s FOMC meeting proved BORING and left me speechless … but not thoughtless. The only phrase of significance was the use of “RELATIVELY SOON” in placing some forward guidance to the beginning of quantitative tightening (h/t Boockvar). We have no idea what “relatively soon” means but I continue to ask: WHY WAIT? Yes, it may be because the FED is nervous about the potential of DEBT CEILING caused by a Congress filled with know-nothings and do-nothings clogging the day-to-day financing of government operations.