D-Day: Fed Discount Window Weekly Update
This week’s Primary Credit activity at the Fed’s Discount Window:
This week’s primary credit balance was $6.2 billion, down from $6.6 billion the week prior and approximately 2x the level from a year ago.
The banks are upside down given the inverted yield curve and large unrealized losses. Thus, the Fed will lower rates to appease the banks, not because the bullshit lagging CPI measure has trended down. Prices of goods and services are elevated and will remain so. The economic damage is done thanks to the awful spend-heavy fiscal policies of the Trump and Biden Admins (especially the latter) and the equally awful misguided monetary policies of the Federal Reserve. Want a strong America? Tie the U.S. Dollar to a commodity-based reserve of Gold or Gold and other precious metals. The nanny state will end and eventually too will market bubbles as the Federal Government cannot print in perpetuity. Eventually, the yield required to hold U.S. Treasuries will find double-digit territory.
Federal Reserve Balance Sheet: Factors Affecting Reserve Balances - H.4.1: https://www.federalreserve.gov/releases/h41/current/
Some of you have seen this picture before in my writings. That’s my paternal grandfather in this D-Day photo. This is when we had a country filled with red-blooded Americans. Real leaders. Ultimate sacrifice. Yet, by then the bloat had creeped in. Hollow men such as Presidents Wilson and FDR ushered in the Nanny/Administrative state - the only mission of which is to keep the gravy train rolling. There is no easy fix as those who represent the people care not about the people, only about themselves. The best idea I have is to vote out every member of Congress who approves any spending bill. Starve the beast!
