๐จ **The Shadow Accord Explained** ๐จ
The Fed & Treasury are ending their 70-year "divorce" to institute **Fiscal Dominance**โrigging the game to suppress yields and ensure US solvency [1], [2].
**The Playbook:**
๐น **Supply Squeeze:** Treasury Secretary Bessent "starves" the long end by issuing T-Bills instead of Bonds ("Billization"), creating artificial scarcity [3], [4].
๐น **Shadow QE:** Incoming Fed Chair Warsh exempts Treasuries from bank leverage ratios (SLR), forcing banks to absorb the debt [5], [6].
๐น **The Narrative:** Rate cuts are justified by an "AI Productivity Boom" rather than inflation data, allowing easing despite sticky prices [7], [8].
**The Goal:** Manage the $10T debt wall, neutralize "Bond Vigilantes," and engineer a massive structural rally in long-duration bonds $tlt
@0xpension@negligible_cap Wow exact quote from CBRE CEO-"If there are less office workers in the long run as a result of AI, there will be less demand for office spaceโ