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Food for thought:
1. SVB will be taken care. It's a 20-30 Bn loss Bill at best..
2. Bigger questions to figure:
2a. How will US govt fund 4-5% interest rate on $31T debt ?
2b. Who has absorbed/un/accounted MTM loss on $31T debt in last 9 months? How many r swimming naked?
1. SVB will be taken care. It's a 20-30 Bn loss Bill at best..
2. Bigger questions to figure:
2a. How will US govt fund 4-5% interest rate on $31T debt ?
2b. Who has absorbed/un/accounted MTM loss on $31T debt in last 9 months? How many r swimming naked?
2c. FED Res equity will turn negative due to losses on its bond portfolio. Powell said FED can pay bills with negative equity/have negative income.. (aisi deewangi dekhi nahi moment 🤣)
3. Can FED have negative equity, it's a Central Bank of $ world's reserve currency
3. Can FED have negative equity, it's a Central Bank of $ world's reserve currency
4. $ depreciation much faster than Inflation is the only way out to fund massive deficits.. Rest of the World will need big incentive in form of high rates and weaker dollar to Buy and hold US assets again
5. 1971 - $ debasement was treachery
2001 was d first big lesson wasted
5. 1971 - $ debasement was treachery
2001 was d first big lesson wasted
As you all know #deflation has been my theme for some time. It is obvious looking at charts like #Copper and #Oil. Here is #Oil. Ending Diagonal which will send Oil <23 USD during 2019/2020. This has been my call since top in 2018. It is >70% drop --> deflationary #HZupdates 
#Copper shows same picture. #Deflation is coming. We are in wave 5 of C in expanding diagonal. Current bounce is wave 2 - will rally slightly higher - before major drop. I imagine this is what Powell starts getting indications on #HZupdates
Notice 2008 Q1-Q3 - during last deflationary phase. Fed had been tightening up to Sept. 2007 - and started lowering rates. BUT damage had been done to economy. World rolled over and #deflation /disinflation. It was from Q1-Q3 2008. #Copper plunged. Same situation now! #HZupdates
