People sitting on Gold and Oil tankers while the fiat fiasco plays out. US Treasury curve yields dropping. This is a true contraction, a rank reduction and all inventory will increase a bit as the -iLog(i) sequence adjusts. There will be less betting on the longer bonds even as we lose bandwidth at the short end, there will simply be fewer trades and more inventory.
But its not oil shortages, but a shortage in stable units of account. In particular the largest i in the set has a Log(i) that is too small to deliver the complete Senate Goodie set, some folks in the Senate are going to feel cheated. We are ending up with Red Line, Second Dip, and Municipal Redo; all meeting at once. The Senate, one way or the other, is the middle of the meet up.
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