A Rise in Prices or Dictators or Both

May 20, 2021

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PART 01: In the 1930s the economic devastation was so bad that only radical solutions remained. But then, like now in our Silent Depression, radicalism does not mean success necessarily. The key is to first understand why the devastation in the first place. Otherwise? Dictators.

PART 02: Starting in October 2019 the Federal Reserve began to buy US Treasury Bills, EXCLUSIVELY. Starting in March 2020 the Fed stopped buy UST Bills, EXPLICITLY. What happened in between? Only the second Global Financial Crisis. 'Oops! Sorry we stripped the system of collateral.'

PART 03: Claudius Ptolemy, a genius, reconciled a geocentric model of the Universe with unexpected planetary paths with "deferent", "epicycle", "eccentric" and "equant" movements. Ben Bernanke, a technocrat, reconciled the unexpected path of bond yields with "term premia".

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Emil YouTube: https://bit.ly/310yisL

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--------REFERENCES--------
Higher Prices Must Be Engineered to Restrain Dictators: https://bit.ly/3ttRxXt
SOMA’s Been Talking For Over A Year: Jay’s Got Some Explaining To Do (bills): https://bit.ly/33sXYja
Global, Not Term Premiums: What Low Yields Really Say: https://bit.ly/2RCgVgL
Is There a Global Factor in U.S. Bond Yields?: https://bit.ly/3f7qjRo
Alhambra Investments Blog: https://bit.ly/2VIC2wW
RealClear Markets Essays: https://bit.ly/38tL5a7

---------WHO-----------
Jeff Snider, Head of Global Investment Research for Alhambra Investments and Emil Kalinowski. Art by David Parkins. Podcast intro/outro is "Fort Green Sunset" by Brendon Moeller at Epidemic Sound.