Saturday, August 29, 2020

Until the Fed taxes hit the banking sector


Devastating Consumer Financial Cliff Coming Right Up

Note the Fed balance sheet included a big increase in seigniorage taxes that came with the stimulus.  That downward jump in excess reserves is equivalent to a Fed tax increase.   The stimulus is squeezed, each stimulus results in an immediate tax increase to our bank accounts. The can is not kicking, we have crowding out regardless of what Edmund says.


 

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