Sep 28, 2022·edited Sep 28, 2022Liked by NE - nakedemperor.substack.com
About Nordstream: probably it was the US trying to provoke a Russian counter-attack. Then the administration would get a nice midterm popularity boost, like Bush after 9/11. Of course there are also other motives.
Sep 28, 2022Liked by NE - nakedemperor.substack.com
The IMF is not always in your interest. During the GFC, the Malaysian government basically gave the IMF the middle finger, and it worked out well for them, while other countries which received bailout and advise from the IMF suffered greatly for years.
Sep 28, 2022·edited Sep 28, 2022Liked by NE - nakedemperor.substack.com
Inflation is the disease that can't be vaccinated against by more money printing. The Handlers may be able to control the interest levels at record lows, but everyone will notice the disease spreading. Then the workers will want their wages kept in line with the disease but they will still be able to pay their mortgages. Something has to give somewhere. Action and Reaction are equal and opposite. Even the Handlers can't rewrite the fundamental laws.
Sep 28, 2022Liked by NE - nakedemperor.substack.com
Always the same. The Fed hasn't even shut off their printing press. QT hasn't even started and the markets are already begging for more cocaine. Rate reversals at the next crash.
Sep 28, 2022Liked by NE - nakedemperor.substack.com
Tax cuts always favour the "rich" by definition. It is a ridiculous take, unless you want to define a certain level of income where you become "rich" and it's open season on your earnings because equality or whatever bullshit is the current leftie trend. The BoE is even more useless since they have been raising rates at full speed to choke the economy because of inflation THEY have created over the last 10 years. As if the politicians creating an energy crisis is not going to torch the economy as well. Said inflation that any decent person with 2 brain cells could see coming for at least 18 months. Now, they do a u-turn within days! If that's not incompetence, I don't know what is. As usual though, those responsible won't see their jobs disappear or their pension affected unlike the tax paying public.
Sep 28, 2022Liked by NE - nakedemperor.substack.com
It feels like Terry Pratchett was prescient when he wrote "Monstrous Regiment", "Going Postal" and "Making Money" (his best works after "Night Watch" in my opinion).
Sep 28, 2022Liked by NE - nakedemperor.substack.com
What’s the difference between QE (I assume it was the Bank of England) buying assets with printed fiat currency) and the Bank of England buying govt/treasury issued bonds? Isn’t it more ‘funny money’ being used to purchase/line rich peoples pockets using funny money?
I wish I understood what exactly or how this govt ‘finance’ thing works.
With somewhere between 300 and 400 Trillion in global debt the entire world is in financial trouble. Being financially responsible is like living in a flat next door to someone who has a meth lab going 24/7 and smokes in bed. And these types are everywhere, so no neighbourhood is safe. But now it sure seems like the globalists have all of a sudden realised that they’ve been sawing off the limb that they are sitting on all along and are now alarmed about it. One thing about this upside down world - it never made a lick of sense
Was the declaration for tax cuts pretense and cover for the conservative party? Is this all a choreographed, rehearsed dance? Interesting to see what little attention the Nordsteam pipelines explosions are getting. Will people really believe that Russia would self-harm by attacking its own project? I tend to think not, but so many will believe what they are told.
So is the usa, the eu, China, Russia, and rest of world. We have been working our way into horrific debt, for years. Remember to live by your means? Well guess what, most people and governments forgot to follow their own advice. And here we are, in the shiggy.
Interesting to watch the parallels with covid policy. As more "vaccines" lead to yet more "vaccines" and more covid, so too more printing leads to yet more printing and more inflation.
Maybe, I dunno, trying to ram through centrally planned policies that bear no relation to reality and history has showed simply won't work isn't a good idea?
If a financial institution holds Gilts as an asset on its balance sheet it gets more income than if it holds a bank deposit on its balance sheet. Swapping Gilts for bank reserves is more likely to *reduce* inflation than increase it - by reducing that income.
The action by the Bank of England removes >20 year Gilts from pension funds and gives them a bank deposit instead, which they can then transfer to the bank that is their counterparty on the out of money interest rate swap as a margin call.
All the BoE has done is cut out the GEMM middlemen from the process who would otherwise have been purchaser of last resort for the Gilts and then had to fall back on the Debt Management Office to back the liquidation (via the standing repo facility). Because the Gilt market is always fully liquid, holding Gilts never stops anybody spending. There is no magic in bonds. They are just another form of money.
There's no change in the amount of assets in the private sector by this process, just a reduction in the income the private sector receives. Neither is there any economic benefit to putting pension funds into administration due to a cash flow crunch. They are already on the hook for a loss due to their swaps going bad.
Just love this article. Every bit of it. Captures exactly how I feel about the whole thing. Thank you
About Nordstream: probably it was the US trying to provoke a Russian counter-attack. Then the administration would get a nice midterm popularity boost, like Bush after 9/11. Of course there are also other motives.
The IMF is not always in your interest. During the GFC, the Malaysian government basically gave the IMF the middle finger, and it worked out well for them, while other countries which received bailout and advise from the IMF suffered greatly for years.
Inflation is the disease that can't be vaccinated against by more money printing. The Handlers may be able to control the interest levels at record lows, but everyone will notice the disease spreading. Then the workers will want their wages kept in line with the disease but they will still be able to pay their mortgages. Something has to give somewhere. Action and Reaction are equal and opposite. Even the Handlers can't rewrite the fundamental laws.
Always the same. The Fed hasn't even shut off their printing press. QT hasn't even started and the markets are already begging for more cocaine. Rate reversals at the next crash.
Truss and her entire cabinet are diversity hires. So many midwits in so many positions of power around the globe!
Tax cuts always favour the "rich" by definition. It is a ridiculous take, unless you want to define a certain level of income where you become "rich" and it's open season on your earnings because equality or whatever bullshit is the current leftie trend. The BoE is even more useless since they have been raising rates at full speed to choke the economy because of inflation THEY have created over the last 10 years. As if the politicians creating an energy crisis is not going to torch the economy as well. Said inflation that any decent person with 2 brain cells could see coming for at least 18 months. Now, they do a u-turn within days! If that's not incompetence, I don't know what is. As usual though, those responsible won't see their jobs disappear or their pension affected unlike the tax paying public.
It feels like Terry Pratchett was prescient when he wrote "Monstrous Regiment", "Going Postal" and "Making Money" (his best works after "Night Watch" in my opinion).
Or he was channeling british history.
What’s the difference between QE (I assume it was the Bank of England) buying assets with printed fiat currency) and the Bank of England buying govt/treasury issued bonds? Isn’t it more ‘funny money’ being used to purchase/line rich peoples pockets using funny money?
I wish I understood what exactly or how this govt ‘finance’ thing works.
With somewhere between 300 and 400 Trillion in global debt the entire world is in financial trouble. Being financially responsible is like living in a flat next door to someone who has a meth lab going 24/7 and smokes in bed. And these types are everywhere, so no neighbourhood is safe. But now it sure seems like the globalists have all of a sudden realised that they’ve been sawing off the limb that they are sitting on all along and are now alarmed about it. One thing about this upside down world - it never made a lick of sense
Was the declaration for tax cuts pretense and cover for the conservative party? Is this all a choreographed, rehearsed dance? Interesting to see what little attention the Nordsteam pipelines explosions are getting. Will people really believe that Russia would self-harm by attacking its own project? I tend to think not, but so many will believe what they are told.
The FED to follow soon…..Wall Street is clueless to what is happening.
So is the usa, the eu, China, Russia, and rest of world. We have been working our way into horrific debt, for years. Remember to live by your means? Well guess what, most people and governments forgot to follow their own advice. And here we are, in the shiggy.
Interesting to watch the parallels with covid policy. As more "vaccines" lead to yet more "vaccines" and more covid, so too more printing leads to yet more printing and more inflation.
Maybe, I dunno, trying to ram through centrally planned policies that bear no relation to reality and history has showed simply won't work isn't a good idea?
If a financial institution holds Gilts as an asset on its balance sheet it gets more income than if it holds a bank deposit on its balance sheet. Swapping Gilts for bank reserves is more likely to *reduce* inflation than increase it - by reducing that income.
The action by the Bank of England removes >20 year Gilts from pension funds and gives them a bank deposit instead, which they can then transfer to the bank that is their counterparty on the out of money interest rate swap as a margin call.
All the BoE has done is cut out the GEMM middlemen from the process who would otherwise have been purchaser of last resort for the Gilts and then had to fall back on the Debt Management Office to back the liquidation (via the standing repo facility). Because the Gilt market is always fully liquid, holding Gilts never stops anybody spending. There is no magic in bonds. They are just another form of money.
There's no change in the amount of assets in the private sector by this process, just a reduction in the income the private sector receives. Neither is there any economic benefit to putting pension funds into administration due to a cash flow crunch. They are already on the hook for a loss due to their swaps going bad.
Well, we were warned that the Great Reset would be painful.