Discover and read the best of Twitter Threads about #TSY
Most recents (2)
1/10 I just realized that the US Gov has to PAY to prop-up the USD in the CURRENT BUDGET through Quasi Fiscal Deficit.
Let's explain the Druck USD short. 🧵
Because QFD is your chickens coming to roost right there.
Let's explain the Druck USD short. 🧵
Because QFD is your chickens coming to roost right there.
2/10 There WERE two timelines. The thing you pay now, the thing you owe in the future. Petrodollars and expansion of #TSY in foreign central banks.
3/10 In 2000 the monetary base is small, the US gov debt is a lot more reasonable. The currency is propped up by petrodollar. Any means of circulation acquires its value in use and non redeemable gov currency the most.
1/7 Few thoughts about the expansion of M0 that is not QE but seems like it could turn into it.
The #Fed has turned the spigots on BTFP. At first it looks like your traditional lender of last resort thing and backstop of credit.
The #Fed has turned the spigots on BTFP. At first it looks like your traditional lender of last resort thing and backstop of credit.
2/7 However, the nature of the "credit" to be backstopped is very unusual. #TSY. If this facility does not revert quickly, continues to grow beyond the panic, the conclusion? The Treasury and the Fed have fully merged. The #Fed is just another (North) LATAM central bank.
3/7 What is also means is the bond stuffing is starting to make the banking system wobble and TSY are puked by the banking system. Kemmerer mentioned in 1920 that TSY are unsuited to be in the banking system for various reasons.
