Who’s Boss

Who’s Boss

I've talked quite a bit recently about central banks' power over markets, and especially their own sovereign bond markets. This is the subject of vociferous debate as policymakers in advanced economies don MMT lenses and feign surprise when they "discover" that currency-issuing governments with sufficient monetary sovereignty aren't fiscally constrained. If you insist on clinging to outdated notions around federal government financing, we can just say that the pandemic compelled officials in d
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3 thoughts on “Who’s Boss

  1. And Kuroda laying the smackdown to the JGB shorts makes the JPY-FX hedged yields and rolldown of USTs and ACGBs so much more attractive for Japanese investors.

  2. It seems absolutely crazy to me that the most important thing that I pay attention to ( re: my investment portfolio) are the collective actions of the large central banks and particularly the US Federal Reserve.
    None of these banks are operated by elected officials or take suggestions from “the people”.
    What the elected people do (or more accurately do not do), is much further down on my top 10 list of things that I monitor to make sure I am comfortable staying lonnnngggg.

    1. What the elected people have been doing for decades, by and large, is messing up and screwing all of us. I’d have probably been significantly poorer today if it weren’t for a few smart guys with guts.

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