Part – 2; Emphasizing the Fed's dilemma.
With the first article (click on the image to the left) we have explained that whatever step the Federal Reserve will take - It be the same feelings as stepping on-to heap of bull shit. Not just because it will stink but it be very hard to clean it as well.
At this time, I will refer to Mohamed A. El-Erian Bloomberg article “Fed Does What’s Expected, Not What’s Needed” dated Dec. 26 2022; … “The Fed delivered what I expected but not what I think is needed for sustainable economic well-being. It should have stopped purchasing assets immediately and given a clearer signal on rate increases.” 
Well it sounds as … We have nothing to fear just fear itself … Dear Mohamed A. El-Erian if someone does not say it loudly it does not mean that the Federal Reserve does not implement rate increase; They just done it the other way that will benefits them more efficiently and the easy way. First of all, it will not cause any form of panic on Market and is less costly to debt servicing Sir Mohamed A. El-Erian. It is called Reverse REPO contracts. In the worst scenario the have went to 2 trillion as Reverse REPO operation and the expenses were just at one go. If they do go with interest raising the expenses be disastrous Mohamed A. El-Erian. (for details click on REPO image to the left)
The following the idea of Mohamed A. El-Erian, the banks of the world did raise its GOV expenses satisfying the financial elite by adding not just the agony of each and every GOV but killing the known to US western Civilization.
Bank of Norway - The bank last month took rates and raise the GOV expenses as serving its debt to 0.5% and at its January meeting. Leaving huge doubt that it flagged a March rate hike if they do survive to that time at this pace. Bank of New Zealand - hiked rates in November for a second time and additionally raise the GOV expenses as serving its debt to 0.75% and forecast they would reach the GOV expenses as serving its debt to 2.5% by 2023. The Bank of England is expected to hike rates this week, after surprising markets with a rate rise in December. Explaining its 15-bps hike and raise the GOV expenses as serving its debt to 0.25%, the BoE is anticipated four 25 basis-point rises by end-2022. The Bank of Canada on Wednesday last week surprised some by opting not to raise the 0.25% interest rate and to keep the GOV expenses at the same level. Sveriges Riksbank of Sweden has penciled in a rate hike only for late 2024 allowing the GOV expenses at the same level for the time being. Rather I do agree with David Rosenberg. Either there be no recession … it be disaster as depravation of constitutional right to property; Mostly the Federal Reserve members and operators’ will lose on this disaster.
I do agree with David Rosenberg rather either there be no recession … it be disaster as depravation of constitutional right to property; Mostly the Federal Reserve members and operators’ will lose on this disaster.
Whenever David Rosenberg mention Yorker he means the Yield Curve
However, all the question does remain in the USA Wallet as Primary Dealers liquidity; (for details click on FED image to the Right)
Please take a proper look to the US Wallet; all the red printing reflects short of FED’s fund which they do own for Primary Dealers and just for that, the FED’s … they do cover it with the operation extending the time on believes that they can survive in power before the very next election. (make the click on the image to the right) The FED’s are short on long and short terms contracts at auction. Base on this fact I have huge doubt that they do survive to Mid-March as per Mohamed A. El-Erian Bloomberg article.
By Peter von Roggenhausen Jan. 31 2022
