Some sort of ordered unphucking seems in the offing.
Closet optimist... ?
My read is... in the actions seen thus far, they're merely seeking to forestall the run on toilet paper becoming a run on pitchforks...
Two issues in parallel... not the same thing... but of the same origin...
One is, a long running scam in which deflation has been imposed as policy through the system of control... as deflationary policy can be arranged easily enough in ways that it enables function in asset transfers.
That's common knowledge now, only in terms of "accidental" outcomes of policy becoming apparent in result of the policy working over the last dozen years... not in any awareness in the sense of the deliberate element in direction... or how and why it works... or in what is true and what is not in the enabling mechanisms of communication... as lying to people to elicit preferred behaviors counter to the reality, and the reality of their self interest... as sheep are herded by the barking of well trained "wolves"...
While the deflation that has occurred and is occurring has been masked by the ruse of "money printing" in excess... sadly, the "money printing" that is occurring has also in fact been made a functional and open ended (and entirely and perfectly isolated as fully derivativized) fraud... even in a forced fraud in the detachment from otherwise functional metrics (yes, the silver price suppression story again... ) all intended to induce the belief there is some massive inflation lurking as threat to be countered... even when none of the money "created" seems it ever finds its way into circulation for public use... perhaps both as it isn't real... and, real or not, as its "flows" in the economy are entirely controlled, and insulated from practical use or utility.
In that way... the policy of endless and open-ended money printing is made non-inflationary... as the real economy is throttled back and controlled, as not subjected to the accelerations that real easy money would enable... as its much lesser productive output... is still increasingly aggregated as a benefit to fewer and fewer over time... as the "booms" fueled by easy money... struggle even to sustain positive employment, much less real economic growth in result. Investments in alternatives to that control of money... also co-opted and controlled to counter purpose ? Bitcoin... less a threat than silver or gold... but a useful "divide and conquer" distraction from them.
Is it inflation, or is it deflation, we have, because it can be only one ? No. Money flow is a homeostatic system... there is always both inflation and deflation... control has you driving your car with one foot always on the gas accelerating, and one foot always on the brake braking... what one gives, the other takes away... with speed decided ONLY in the balance. Flooring the accelerator (printing presses producing helicopter money) doesn't generate screaming accelerations in economic booms or inflation... as long at the brakes are pressed to the floor just as hard ? But, eventually, driving that way... either the motor blows up... or the brakes fail. You find out which happens first... only when it happens... while the risk of both, one or the other, is always touted as a useful means to elicit particular behaviors in others...
Trouble, however, occurs... when those telling the lies that enable sustaining the homeostasis begin employing those who believe the lies told, as their managers... and they base policy on the expectation that "what works" as "all of the people, some of the time"... is actually proven by that function of it working some of the time, as necessarily proving the lies being told to make it work... are the truth...
Over time, the metrics used to drive the systems are all corrupted by the fact of everything being originally based in deception... with the normal degaussing functions disrupted by the suspension of real price discovery... significant charges can build up in the accidental creation of high voltage capacitors from what are assumed to be well grounded functions.
I posted yesterday about "focus on the evidence" in revealing what it is that the bankers do value...
Defending the banks... even at the expense, first, of price discovery, then at the expense of Mom and Pop's 401K, and then, even... market stability... and still... persist ???
There is a ground truth... we're not connected to it... and as the dynamo is humming... capacitors do have a capacity limit...
That's one issue...
The second issue is:
As the capacitors begin to leak current... how many dollars will it take to fill the hole created by an unwinding of all of the derivatives ?
No answer, of course... can be determined independent of a true awareness of the actual state of the systems ? You might get one answer... if a capacitor suddenly blows... and another if the event is decided by the recognition event most would expect from a dozen years of unpaid power bills...
Of course, yes, that is a trick question, too... because no one knows how many derivatives there are ?
Post-1929 the Glass-Steagal corrections applied to limit the excesses of bankers... included "firewalls" that precluded bankers trading losses crossing barriers to have direct impact on "deposits" and infect the system of money... which was made "untouchable" by the firewalls... and the system of money was thus made immune from the impacts of leverage applied on the other side of that barrier... That feature was unwound... with a single dissenting vote in the Senate. One guy out of a hundred got it right.
And, yet... we've not seen bank runs, yet... ? They occurred in the trial runs in Greece and Cyprus ?
Three fails I've noted, thus far... one in Chicago, one in New York, this the first one with a name attached:
Ronin Capital Blows Up, Unable To Meet CME Capital Requirements After VIX Trade Goes Wrong
It begs the question: how can anyone quantify risk exposure... when no one tells the truth about the risk?
Not sustaining the Glass-Steagal glass walls... while assuming you can trust the bankers wheeling and dealing to not knowingly bet the survival of the species... to win an incremental advantage in profit... tied to an improbable but still measurable (before being leveraged) risk ? Trust them... when they've disabled all the grounding, and the most functional metrics... leaving only those that are self-referential ? The control systems for your economy... would be vastly better if they were patterned on the 737 controls designed by Boeing... which at least were not entirely self referential.
That giant sucking sound you hear... is all of the money being sucked out of the market... by some blackhole the bankers have created... that you're not allowed to know about ? The rats are abandoning the sinking ship of negative interest rates everywhere and piling into the dollar now... faster. How many dollars does it take to keep everything afloat ? "All of them" ? Still not enough ?
Thus far, the efforts made have all been focused on trying to fill in the hole... with no discussion of the hole, its origins, its functions... as those cannot be discussed without exposing the truth about how things work.
In a too delicious irony to enjoy, it appears the coronavirus equivalent in economic terms... because its existence is already long known... but the official response has been to cover it up and pretend it isn't happening... hoping that maybe it will just burn itself out and go away... before anyone figures out who made it, and who unleashed it... much less who decided on covering it up ?
As coronavirus proved in Wuhan... there is no path to a solution that doesn't' start with telling the truth.
As in Wuhan... the odds of that happening BEFORE "control" fails... slim to none...
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