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Acting Man/Peter Tannebaum/6-15-2020
“It started out with Jay Powell planting a happy little money tree in 2019 to keep the repo market from suffering a terminal seizure. This essentially led to a restoration of the status quo ante ‘QT’ (the mythical beast known as ‘quantitative tightening’ that was briefly glimpsed in 2018/19). Thus the roach motel theory of QE was confirmed: once a central bank resorts to QE, a return to ‘standard monetary policy’ becomes impossible. You can check in, but you can never leave.”
USAGOLD note: The Hotel California allusion is an apt one. Tannebaum does a good job illuminating the dangers of an extended stay.