The speed of Fed rate hikes this year, in 2022, is unprecedented in history. In just six months, the Fund rates have risen more than 2% at a time when the public deficit is also at an unprecedented level at over 31T USD. The speed of Fed rate hikes is bleeding its livestock (citizenry) dry Interest on the public debt is fast approaching 500B USD, the third largest budget item costing every adult farm animal 13,491 USD per year,...
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Collapsing market liquidity is flashing red everywhere. The Federal Reserve’s Repo hit a record 351BN, its biggest weekly jump in history in the first week of November. The Repo market is an important component of the capital market, which provides short-term liquidity The last time the $3 trillion Repo Market blew up was in mid-September 2019 when the Repo rates spiked to 10%. I remember forecasting market turbulence, bearing...
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