Seems desperate.
“Powell & Co. plan to force banks to borrow from them – or else”
“It’s an attempt to prevent any financial institution from failing, no matter how insolvent it becomes… Consolidating all bank lending into the central bank’s direct control. The Fed wants to be not just the guiding hand but the sole arbiter of the money supply.”
https://www.fxhedgers.com/p/you-will-borrow-and-youll-like-it
“Why would the Fed do this? Why don’t they want us aware of where the problems are in our financial system?
In short, because they’re everywhere. The Fed knows that they’ve created the mother of all ticking time bombs and there’s only two options: let it explode in the most violent deflationary event since the Panic of 1907 or diffuse this monstrously large bomb by throwing it in an equally large liquidity bath.”
If that was the only effect of this terrible policy we could live with that.
Unfortunately, that's not the only horror.
The entire system is based on distributing capital across many reservoirs.
This will create a singularity.
That distortion will have catastrophic effects.
— David Levenson. I am increasing low beta leverage. (@PolarityRadio) January 21, 2024
“If that was the only effect of this terrible policy we could live with that.
Unfortunately, that’s not the only horror.
The entire system is based on distributing capital across many reservoirs.
This will create a singularity.
That distortion will have catastrophic effects.”
“Having a singularity distorts prices. It eliminates price signals in terms of consumption, in terms of asset values, in terms of inflation.
An unmitigated disaster.”
AC