Tuesday, July 12, 2022

Booster test explosion

 

If there were dumb unqualified incompetent Art Degree people at the follow up meeting (I assume there won’t be but if there were) they would be advocating for just rebuilding the same thing and maybe it wouldn’t blow up again…



14 comments:

Footsoldier said...

Everything we have been talking about for the last 2 months on here.


Is summed up by @MacroAlf in this video. Alf is now Free from the compliance guy at the bank he used to work for.

https://m.youtube.com/watch?v=8TPnUPTc118&feature=emb_rel_end


This Alf guy is worth adding to your Twitter followers. His Subtack that gives a different point of view to the mainstream.

Footsoldier said...

Alf kinda backs up Matt and Mike's theory regarding loads of reserves and bank lending.


On his substance pages.

Footsoldier said...

The TRUE Reason Why Central Banks Do QE


https://themacrocompass.substack.com/p/portfolio-rebalancing-qe#details



Are we now getting somewhere Alf is talking about Liquidity Coverage Ratio (LCR). Banks having to raise more capital.


Are the dots now forming the correct pattern ?


Are we now finally approaching the twilight zone ?




Footsoldier said...

Alf also backs up Matt and Mike's theory regarding loads of reserves and bank lending in the interview with Hugh Hendry on the video above.


Hugh Hendry although out of the box, gets some very interesting characters on his interviews.



Footsoldier said...

Looks like Alf is trying to answer the multi million $ question.


" As government spending decreases at what point does bank lending become safe, weak and problematic "


The goldilocks conundrum. As The sectoral balances are always a quarter behind and based on aggregates. The ship has already sailed.


Alf uses -G5 Credit Impulse series: it measures the pace of change of credit creation in the 5 largest economies worldwide and it serves as a very reliable leading indicator (6-15 months lead time) for economic growth and the performance of several asset classes.


At This time the G5 Credit Impulse series is lower than the GFC !


https://themacrocompass.substack.com/p/recession#details


Which could mean the next 12 months are going to be very interesting indeed. If ever a BIG infrastructure plan was needed it is probably now.

China gets it. They are starting theirs and brought it forward from January. Does China know what's coming ?

Footsoldier said...

G5 Credit Impulse series:


Could explain why Jamie Dimon said only a few weeks ago


" There's a hurricane coming "


Matt Franko said...

I follow Alf

Matt Franko said...

Looks like Hendry went hippie dippy…

Matt Franko said...

TGA down from 780 to 660 in July... so that is 120b flow to bank reserves... so you can see how SLOOOOWWWWW the QT is here at the beginning to have any effect... iow the volatility of the TGA can easily overcome the measly -47.5b of QT per month that Fed is doing... this may take several months to have any minimal effect at all... iow in 3 months they may do -150b of QT but the TGA can drop that much in a week... results in no change to depository system’s asset composition...

Peter Pan said...

Failure to launch... way to go, Brandon!

Footsoldier said...



That G5 Credit Impulse series might be worth adding to the MMT toolbox ?


Yes/No ?


Globalisation and the war means no country is isolated.



















Footsoldier said...

" Looks like Hendry went hippie dippy… "


If I had his money and lived on St Barts it wouldn't take much for me to become a hippy. I'd dive head first right into the hippy lifestyle.

He comes to a lot of the same conclusions as MMT just takes the long way around and sometimes arrives there by complete accident and for the wrong reasons.



Footsoldier said...

He can't get over the Yen trade that nearly broke him and sent him into a spiral of depression. He even hijacked Richard Werner for a few months to try and help him get over it. Now a very big fan of the prince's of Yen.

When I was on Twitter I kept pestering him to do an interview with Warren. But he thought MMT was nothing but PMT.

Wouldn't respond when I asked him if he thought he had the whole interest rate thing backwards. So gave up but like watching his videos.













mike norman said...

I follow Alf as well.