Tuesday, November 21, 2017

Off equilibrium

Janet is telling us she might raise rate one more time, even as she franticly buys the short end to keep down rates.  As short treasuries pile up on Jante's sheet, the one year yield keeps rising, now at 1.6.

So, to raise rates means buy less of the one year, and attempt to lower the one year by less then she would have attempted to lower it otherwise.  Whew! But that is off equilibrium, the Fed is circling around the debt cartel, not the economy.

True, she is just twisting the sheet, but Ned is still quite desperate in the short term. using the card.

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