Rising interests rates are driving cash into safe havens - T-Bills.
Bank deposits will fall.
And w/them, bank holdings of reserve at the FED
The elephant in the room?
Derivatives
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I thought this was a pretty honest take, all things considered. Along the way, it makes a couple of the same points as the OP article posted by Robert_Barricklow,…but no mention of derivatives, interestingly.
I’d love to hear from some of the FDR haters on this.
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A pretty fair take, as far as it goes, and considering where it was published. It was a bit disingenuous and one-sided, in his “four lessons” at the end, to say, “The Trump regulatory rollbacks of financial regulations are dangerous” without adding “and the Clinton abolition of the Glass-Steagall Act was disastrous.”
Also, the Fed gets off scot-free in this article…
You didn’t have to be a rocket scientist to know that when the Fed raised interest rates as much and as fast as it did, the financial cushions behind some banks that had invested in Treasury bonds would shrink. Why didn’t regulators move in?
How about: Why did the Fed raise interest rates so much, so fast, knowing this would happen? Yes, because of all the money printing. So, why did the Fed do all the money printing? Better yet, why does the Fed exist at all? Oh… that’s right – to prevent economic crashes and bank runs.
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Too true.
Michael Hudson knows the $core.
He made his bones in the down & dirty international oil business; for non other than, David Rockefeller.
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