No QE!!!!!!

Tell me you are injecting liquidity without injecting liquidity.

Discount window lending at 0.25% that’s a liquidity injection but at 4.7% percent not so much. Backstopping depositors and seizing assets to liquidate them and pay back that backstopping is not so much liquidity either.

Before we get all excited about a potential third rate cut pivot in 3 years (had two already in 2019 and 2020) maybe we should ask ourselves if the Fed is channeling Paul Volcker or Arthur Burns.

Can we seriously go back to 0 again and let the insanity of speculating on longer-dated bonds resume while globalization decides to continue to be global but not under the dollar but BRICs instead?

What happens to inflation, debt (all levels), fiscal spending, entitlements, taxes, Western globalization, and geopolitics if we decide to pump for one last hurrah?

We need adults, not politicians or meme stocks. We are playing for all the marbles. Maybe we should change the name of QE to QP or Quantitative Perestroika. It might be more fitting for historians when they look back.

Politics produces a short-sightedness to economic policy. Un-, semi-, pseudo-democratic political systems create even greater short-sightedness for the benefit of ever fewer players. Like Perestroika our political and financial elites are more worried about how to buy their next dacha in Florida than long-term viability of the economy or the dollar.

Every economic reform passed promises ever greater disruption of the old system while delivering wilder higher returns to be had in a very short time at very low costs. These reforms will all be financed with deficits, and inflationary money printing, without any subsidies cut. Modernization, new technology, automation, and innovation will somehow work out mathematically. That is what Perestroika promised and we are now being promised by our great fearless leaders today. They will socialize capitalism and create a new utopian society where everyone can afford foreign-made blue jeans.

The good news is that at least our political and financial elites, unlike Brezhnev and Gorbachev, are not running Glasnost alongside Quantitative Perestroika as we ban TikTok. That would seriously reduce their chances of ever keeping their dachas in Florida.