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‘Dancing On The Edge Of Metastability’
A couple of days ago, we penned something called "‘If You See A Vol. Spike, Try To Kill It, Ok? It’s Not A Pet.'"
The first thing we want to point out about that post is that the title is a reference to what is possibly the most underrated Will Ferrell movie ever produced - a campy, crude, R-rated masterpiece of slapstick comedy called "Semi-Pro." If you haven't seen it, you have inadvertently done yourself a disservice and you should correct that oversight at your earliest convenience.
“More cheesburger”
https://twitter.com/heisenbergrpt/status/924114755287240704
I deal with this regularly as a programmer. The desire to modulate a binary input into an analog output is a lot easier said than done. Nice graphics.
Mr. Heisenberg has, as usual, extrapolated the concept into a fairly easy metaphor to comprehend. The movie references don’t do a whole lot for me though.
Very valid concerns raised about the transparency, communication loop and forward guidance issues. Reinforces why more of the same with Yellen or Powell is a poor choice, and Taylor or Warsh would be a step in the right direction, although there’s probably no going back now to the old days a la Greenspam.
Figure 17 is the main basic function from a “butterfly catastrophe.” (See Rene Thom) The function shown looks just like the one that reflected support, or the lack of it, for the Vietnam war. Left hump was non-support, right hump was support. In any bifurcated dynamical system such as this one of those two humps is going to go away and provide a ramp straight to the bottom of the side that disappears until it is stable. It WILL happen.
Doesn’t matter what the ECB or FED says……..they always follow the market.