Tough stuff, lots of peculiar jargon.
My take away is that the Fed is looking for any yield greater than 1.5 upon which it can buy and remit gains. The Fed wants the net government interest charges reduced from the normal 2.1% or so. Eventually the Fed will be buying MBS again. The Fed is trapped. Powell is taking the least volatile path toward an intelligent devaluation.
This is deflationary, government really is collecting the proper amount of taxes, The problem is tax incidence, banks are not tax collectors. So we have this cat and mouse game of avoiding the tax and the Fed constantly chasing the tax. The name for this is insanity, a really foul idea. Banking will collapse under the dead weight cost of tax collection, the mechanics of it.
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