JPow vs Bond Market, Round 4
Is it different this time? Can the bond market actually just be wrong? JPow "flooded the world with dollars", right? There's no way that it's actually pricing in deflation when the Fed "printed" trillions of "money" (bank reserves) because doesn't that HAVE to mean inflation is coming??
Either the Fed just doesn't understand how the system works at all, or they're purposely trying to perpetuate the major monetary and economic problems we've been seeing for the last 12 years. My bet is on the former. Either way, the bond market isn't wrong; It's been right every single time for the last 100 years, and this time isn't different. You'd think that after multiple batches of QE and no sign of inflation they'd learn, but nope, not at all. Japan has done 27 variations of QE and they've nothing to show for it besides The Lost Decade and another 20 years of stagflation and little to no economic growth. If the institutions that are ACTUALLY at the center of the global monetary system are pricing in deflation and a long, slow recover, and have been for several years now, then maybe we should listen to them instead of that clown at the Federal Reserve.
Alright, sorry for the rant. Check out the divergences by the way. They're getting bigger and stronger, so be cautious if you're going long. I'd expect at least a pullback to the 20d SMA, maybe the 50d SMA, sometime next week, and wouldn't be surprised if another big correction is just around the corner. Probably around August is when there might be another repo market bottleneck and liquidity crunch.
Be smart. Don't be greedy. And don't listen to JPow lol
Either the Fed just doesn't understand how the system works at all, or they're purposely trying to perpetuate the major monetary and economic problems we've been seeing for the last 12 years. My bet is on the former. Either way, the bond market isn't wrong; It's been right every single time for the last 100 years, and this time isn't different. You'd think that after multiple batches of QE and no sign of inflation they'd learn, but nope, not at all. Japan has done 27 variations of QE and they've nothing to show for it besides The Lost Decade and another 20 years of stagflation and little to no economic growth. If the institutions that are ACTUALLY at the center of the global monetary system are pricing in deflation and a long, slow recover, and have been for several years now, then maybe we should listen to them instead of that clown at the Federal Reserve.
Alright, sorry for the rant. Check out the divergences by the way. They're getting bigger and stronger, so be cautious if you're going long. I'd expect at least a pullback to the 20d SMA, maybe the 50d SMA, sometime next week, and wouldn't be surprised if another big correction is just around the corner. Probably around August is when there might be another repo market bottleneck and liquidity crunch.
Be smart. Don't be greedy. And don't listen to JPow lol
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