SLR Policy Decisions the root of Inflation
This idea is a primer for ideas on how the FEDs decision to suspend the Supplemental Leverage Ratio for COVID and Implement the Overnight Reverse Repo while printing QE has led to the complete collapse of the bond market and began the era of sticky inflation.
If you overlay the 10Y Breakeven Inflation rate with Year over Year then circle the dates when Jerome Powell Eased SLR for covid and when it expired and implemented changes to overnight repo.
You get a clear sense of how the policy decisions around SLR/Overnight Repo while continuing to print dollars is a clear driver for a decline in bonds and equities while also driving up inflation, DXY and Commodities.
TLT has completed a massive multi-year head and shoulders and over a half dozen daily bear flags.
TLT recently broke through 2014 lows and already flagging lower to 2008 levels.
More to come. It's a fascinating time to analyze markets.
Wish you saw this coming? Hit the like and follow.
Below are charts and ideas I created with warning signs over the past 2 years (I didn't know what some of them meant at the time) but I do now.
If you overlay the 10Y Breakeven Inflation rate with Year over Year then circle the dates when Jerome Powell Eased SLR for covid and when it expired and implemented changes to overnight repo.
You get a clear sense of how the policy decisions around SLR/Overnight Repo while continuing to print dollars is a clear driver for a decline in bonds and equities while also driving up inflation, DXY and Commodities.
TLT has completed a massive multi-year head and shoulders and over a half dozen daily bear flags.
TLT recently broke through 2014 lows and already flagging lower to 2008 levels.
More to come. It's a fascinating time to analyze markets.
Wish you saw this coming? Hit the like and follow.
Below are charts and ideas I created with warning signs over the past 2 years (I didn't know what some of them meant at the time) but I do now.
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