Another Sunday action by the Fed, this time less about regional US banks instead acknowledging major global (euro)dollar potential dysfunction. Some maybe a lot of that is coming from Switzerland. What the Fed and other central banks are up to and how Credit Suisse fits into the deflationary/inelasticity puzzle.

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”2022 was one of the worst years for fixed-income investors in history. Bonds lost money. Stocks lost money. Crypto lost money. Inflation rose to levels not seen since the 1980s. The only thing that increased in value were commodities. You have to go back to the Civil War in the United States or the Napoleonic Wars in Britain to find a worse year for bonds”.

Working Paper

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The FOMC met today and hiked rates. More than that, they set course for more to come and policymakers holding those up for a longer period. And the markets completely, totally, utterly rejected the "almighty" Fed. This is why.

The world and the US$ in particular has operated on a virtual currency basis for decades. Without realizing it, most people have participated in this radical shift in money therefore banking. If currency is virtual, then what is it that banks actually do? Most people don't know or don't realize what banks really are and the world-altering consequences of this.

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"I think there was a second Volcker moment that gets less publicity but is also important, and that occurred in the summer and fall of 1982."

"Bailouts to avoid sovereign default were comparatively modest."