The FED’s not just stop injecting liquidity but soon will stop its monetary policy injection as action!
(Please excuse me for not posting
last week, but not only Ukrainian War cause it as technical problem with the
equipment improvement too.)
A few words about the Ukrainian War; Putin as the
head of the hard heads at Moscow … had strong believes that the time is correct
as the money operation in the western civilization hits its bottom. On the past
Putin make its target to diminish financially NATO. In other words, he almost
achieves his goal and … at the very same time miscalculate the situation, as he
made the wrong assumption. One third of his army speak that way as those near
Yunakivka Ukraina.
(click on the
image to the left)
In controversy Ukrainian Army set a cleanup committee at Bucha near Kiev and still fighting at the Hostomel airport around Bucha. The
second round of talks between Ukraine and Russia is over - Podoliak. Ukraine did not get the results it hoped for, said
an adviser to the head of the Office of President. According to him, the parties
agreed on humanitarian corridors for evacuation of people and delivery of
medicines in the areas of the most active hostilities, as well as a temporary
ceasefire during the evacuation. The third round of talks is to take place in
the near future while the lamestream media as NATO members showing only Russian
potential as Russia reflects these imagination and not the genuine reality on
the ground.
However, in the US, the Secretary of
the Treasury Janet L. Yellen don’t have much of the US population admiration, so
she has decided to use the Ukrainian war to make public statement and appearance
or manifestation. In her speech at the University of Illinois-Chicago today
03,03,2022 she said "Russia is increasingly an economic island," after visiting
Chicago's Ukrainian Village neighborhood. Well US at the same time is on a verge
of catastrophe and she did not even mention, that we are in very unpredictable
and uncertain environment. And why is that? It is because the FED’s does not
care much about liquidity as we are slowly stepping up to liquidity trap
definition which usually occurs when the Fed's monetary policy doesn't create
more capital. We have currently inflation, but deflation encourages public to wait for prices to fall further
before spending. As this vicious cycle continues spiraling downward, the economy
and is caught in a liquidity trap. As an outcome there be fewer market
participants and we will have recession. Low liquidity means that markets have
few opportunities to buy and sell, and assets become difficult to trade. So, the
simple question is as when?
So far, we have System Open Market
Account (SOMA) at the level of 8,367 trillion as of 02 of March 2022, what means
few weeks left before reach 100% of the FED’s assets either the FED’s improve
these SOMA position. On the Primary Dealers liquidity market situation become
worst and worst from one week to the other. (See the
images below)
Personally, I
have serious doubt that Treasury Janet L. Yellen is capable to make any
other public appearance or manifestation or statement, a specially in reference
to national economy;
Off course there is a simple
solution. All we need is about week from the time someone with open mind take
control of the low before the storm. We can simply restore Gov. wallet and begin
to pay back the Debt hold by the public as this is the only way to get out of
this mess.
By Peter von
Roggenhausen March. 03.2022
Oh. Well, as the
people saying “Money talks” … so if we had had the necessary fund, you will have
the right information at the right time.
