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TBL is a great newsletter - I get a kick out of paying for it with lightning once a quarter :)
On this one:
  • I find it perplexing, but unsurprising that the Fed doesn’t follow some version of the Taylor rule and maintain rates as some function of employment and inflation. I’m constantly trying to decide whether they’re incompetent or corrupt - probably both?
  • Why do the markets continue tolerating the illusion that the USD won’t eventually fail, and rather demand far higher interest to compensate for the debasement? I guess with the size of these markets there’s no where else to go besides real estate, and commodities?
  • If I was a corrupt member of the FOMC or a Fed insider I’d take money off the table (out of equity and bonds) then wait until I know policy is going to change, then go all in with some leverage and kill it on the next brrrr run. Or I’d do it with my spouse’s trading account to make it a little less obvious. (In this scenario I work for the Fed and already have no scruples)