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1/13
If you're going to make it. You need to have some foresight and not be the laggard. You need to be objective in your views
Fed to Ann 4th Q Bond taper of 120B p.m
The Fed vs $BTC continued
If you're going to make it. You need to have some foresight and not be the laggard. You need to be objective in your views
Fed to Ann 4th Q Bond taper of 120B p.m
The Fed vs $BTC continued
2/13
So they are purchase tapering. That's a massive pullback in purchasing liquidity that will send rates higher. Their goal is to not cause panic. Say 1 thing, slowly do another. What will they say?
So they are purchase tapering. That's a massive pullback in purchasing liquidity that will send rates higher. Their goal is to not cause panic. Say 1 thing, slowly do another. What will they say?
3/13
Something along the lines of. We'll still be aggressive in our support of the economy, but with things opening up we see it necessary to start tapering purchases slowly as the economy is showing strength"
Something along the lines of. We'll still be aggressive in our support of the economy, but with things opening up we see it necessary to start tapering purchases slowly as the economy is showing strength"
4/13
As life returns to normal, and as we get closer to heard immunity. The stimulus stops which alone will be a huge supply shock. Some important notes from my article below:
As life returns to normal, and as we get closer to heard immunity. The stimulus stops which alone will be a huge supply shock. Some important notes from my article below:
5/13
The Fed has essentially propped up all markets on an avalanche of liquidity and stimulus, and they will find them to be extremely rate sensitive. The smallest adjustment to policy could send shock waves through the markets once again
The Fed has essentially propped up all markets on an avalanche of liquidity and stimulus, and they will find them to be extremely rate sensitive. The smallest adjustment to policy could send shock waves through the markets once again
6/13
The first and primary tool the Fed possesses is the discount rate. The discount rate is the interest rate at which The Fed lends to member banks.
The first and primary tool the Fed possesses is the discount rate. The discount rate is the interest rate at which The Fed lends to member banks.
7/13
This is primarily meant to be a backup source of liquidity, with the intention that the Fed is a lender of last resort, or an emergency backstop to keep banks from failing in times of liquidity crisis
This is primarily meant to be a backup source of liquidity, with the intention that the Fed is a lender of last resort, or an emergency backstop to keep banks from failing in times of liquidity crisis
8/13
Decreasing this rate makes it cheaper for banks to borrow, and subsequently increases the amount available credit and lending. Inversely, raising the discount rate has the effect of making borrowing more expensive for banks, and reduces credit and lending activity.
Decreasing this rate makes it cheaper for banks to borrow, and subsequently increases the amount available credit and lending. Inversely, raising the discount rate has the effect of making borrowing more expensive for banks, and reduces credit and lending activity.
9/13
The Fed's primary purpose is to maintain economic stability. When inflation runs too hot, the US dollars purchasing power shrinks, and when it is too low, its purchasing power is increased.
The Fed's primary purpose is to maintain economic stability. When inflation runs too hot, the US dollars purchasing power shrinks, and when it is too low, its purchasing power is increased.
10/13
By increasing or decreasing the money supply through influencing interest rates, the Fed can effectively stimulate or slow down the economy. The Fed has long maintained a target inflation rate of 2% per annum
By increasing or decreasing the money supply through influencing interest rates, the Fed can effectively stimulate or slow down the economy. The Fed has long maintained a target inflation rate of 2% per annum
11/
If inflation is allowed to run too hot or rise excessively, you risk hyperinflation, a state where prices of goods + services rise so quickly that you risk economic meltdown as individuals struggle to afford items due to the rapidly accelerating depreciation of their currency
If inflation is allowed to run too hot or rise excessively, you risk hyperinflation, a state where prices of goods + services rise so quickly that you risk economic meltdown as individuals struggle to afford items due to the rapidly accelerating depreciation of their currency
12/13
The FED when it comes down to it will do whatever it takes to protect the USD. Based off the projection of events of Vaccination, I expect that we see that begin to happen during Summer or fall. Look deeper. ๐ฌ๐ผ๐ ๐ฐ๐ฎ๐ป ๐ฐ๐ฎ๐ฝ๐ถ๐๐ฎ๐น๐ถ๐๐ฒ ๐ผ๐ป ๐๐ต๐ถ๐ ๐ฏ๐ผ๐๐ต ๐๐ฎ๐๐
The FED when it comes down to it will do whatever it takes to protect the USD. Based off the projection of events of Vaccination, I expect that we see that begin to happen during Summer or fall. Look deeper. ๐ฌ๐ผ๐ ๐ฐ๐ฎ๐ป ๐ฐ๐ฎ๐ฝ๐ถ๐๐ฎ๐น๐ถ๐๐ฒ ๐ผ๐ป ๐๐ต๐ถ๐ ๐ฏ๐ผ๐๐ต ๐๐ฎ๐๐
13/13
Longer explanation: https://www.getrevue.co/profile/pentosh1/issues/usd-whitepaper-580550
Longer explanation: https://www.getrevue.co/profile/pentosh1/issues/usd-whitepaper-580550
