JeffSalow

[JeffSalow @AgAuResearch]

@GeorgeGammon State/local govs can't print/issue currency so if they spend more than their tax receipts they either run a deficit or borrow from the federal gov.

A few states borrowed for covid benefits and can't repay by deadline so employers in those states have to pay higher FUTA. 👇

[JeffSalow @AgAuResearch]

@GeorgeGammon The argument is not that QE (adding reserves) is the only "money printing", it's that QE increases "money printing". So if everyone is ok with 2% inflation, then the Fed is the cause of more than 2% inflation. They recognize this and it's why they are doing QT (removing reserves)

[JeffSalow @AgAuResearch]

@KrisShafer7 @GeorgeGammon @WalkerAmerica In your opinion what does the Fed do?

[JeffSalow @AgAuResearch]

@GeorgeGammon @_dsmoker The Fed did QE and kept the FF Rate at zero to increase inflation (through bank leding). Now are doing QT and raising the FF rate to cool inflation (through less lending).

You used to wear an End The Fed hat but I fear you've been led astray by your disinflationista bond buddies

[JeffSalow @AgAuResearch]

@GeorgeGammon @_dsmoker Reserves are more than theater. They are a monetary policy tool used to influence bank lending.

[JeffSalow @AgAuResearch]

@GeorgeGammon I'm pretty banks won't lend if they can't cover their reserve requirements.

BTW, where do you think the declining reserves went in 2015-2017?

[JeffSalow @AgAuResearch]

@GeorgeGammon @WalkerAmerica The Fed printed excessive reserves and bought bonds from banks so the banks could lend currency freely to institutions and hedge funds who played the markets.

Hence the Fed is implicit in excessive currency "printing" that facilitated the asset bubbles and inflation we now have.

[JeffSalow @AgAuResearch]

@faststocknewss @Reformed_Trader But that's just a giant bull flag right 😟...

right??? 🙃

[JeffSalow @AgAuResearch]

@PeterSchiff Risk-on intra-day traders are still fighting the Fed (buying high yield and fading long bonds). Just means this goes on longer than anyone wants. 😔

[JeffSalow @AgAuResearch]

@RetirementRight Anyone who bought yesterday's close and sold today's open got smoked. Although that's been a winning strategy for a long time, I have a feeling we'll see more days like today where that's a bad strategy. 🙃

[JeffSalow @AgAuResearch]

@RetirementRight Traders have become addicted to expecting support from the Fed so Powells message is going in one ear and out the other.

[JeffSalow @AgAuResearch]

@MacroAlf He needs people to lose their jobs AND immediately apply for a new job. People simply leaving the reportable workforce will not satisfy lowering wage inflation.

[JeffSalow @AgAuResearch]

@NorthmanTrader Even core PCE won't be at 2% next year without more stock market pain.

[JeffSalow @AgAuResearch]

@ThHappyHawaiian Pretty sure the Fed is at least going 50bp to get above Canada in interest rates. Will that be the final straw on the existing pile that will send the market to new lows? 🤔

[JeffSalow @AgAuResearch]

@Sorenthek The price action in $Silver (PSLV) has been very technical as there hasn't been enough "fundamental" reason for the typical Non-PM trader to jump in... yet! 😉

[JeffSalow @AgAuResearch]

@LynAldenContact TSLA is probably due for a bounce from here... as long as the whole market doesn't fall apart after FOMC day. 🙃

[JeffSalow @AgAuResearch]

@NorthmanTrader Fibonaci fan 😉

[JeffSalow @AgAuResearch]

@NorthmanTrader Guess we'll just have to keep pumping the bubble higher. 🙃

[JeffSalow @AgAuResearch]

@goldseek Seems like technical selling off a moving average. 🤔

[JeffSalow @AgAuResearch]

@DonDurrett This is the only (short term) bullish argument I see for stocks right now. Still, it should be a dome of resistance again very soon. 😵