“Three weeks ago, moments after the Treasury released its latest Treasury issuance Sources and Uses report which virtually nobody on Wall Street pays attention to, we confirmed something we first observed months earlier: stealth QE – which as we explained early this year is how the Treasury injected $1.5 trillion of liquidity into the market in the past 12 months bypassing the Fed entirely – was not only over but was about to go into reverse as the US Treasury was set to unleash several hundred billion of quantitative tightening. The reason: after dropping to a post-covid low of $450 billion, the Treasury’s cash balance would first drop to $300 billion, and then continue declining for the duration of the debt ceiling negotiations (which will conclude successfully at some point in the next 2 months despite days of theatrical posturing as the US will not default) before surging to $800 billion by year end.”
Forget The Fed And Jackson Hole: Treasury Is About To Unleash $500 Billion Quantitative Tightening | ZeroHedge
2 thoughts on “Forget the Fed And Jackson Hole: Treasury Is About to Unleash $500 Billion Quantitative Tightening”
So, continued brake on hyperinflation by the Fed policy of restricting cash, followed by realising of the brake and seeing Weimar 2.0?
Xavier, I think it depends on aggregate flow of funds and where the funds are flowing…I am not sure this represents a “brake” on net….