The Jack Mallers Show The Plot Is In The Plumbing & Bitcoin Can Smell the Printer
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Nov 11, 2025 Dive into the complex world of fiscal dominance and its implications for the economy. Discover how rising SOFR hints at cash scarcity and what the Fed's Standing Repo Facility does during funding stress. Explore the connections between T-Bill issuance, liquidity drain, and potential hyperinflation ahead of the midterms. Jack explains why Bitcoin mirrors money printing and the challenges of inflation versus deflation in a debt-driven system. Plus, find out how technological innovations like AI and concepts like UBI fit into this evolving financial landscape.
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Two Pounds Of Patties At The Ritz
- Jack describes walking through the Ritz‑Carlton smelling of two pounds of McDonald's beef patties after a flight.
- Wall Street folks asked him to explain Bitcoin while he raced to eat and record the show.
Fiscal Dominance Drives Fed Action
- Fiscal dominance happens when Treasury financing needs force monetary policy and the Fed to accommodate deficits.
- That dynamic drains bank reserves and makes money printing inevitable to stabilize funding markets.
SOFR Versus IORB Reveals Liquidity Stress
- SOFR measures the overnight cost of borrowing cash collateralized by Treasuries while IORB is interest paid on reserves at the Fed.
- When SOFR exceeds IORB, it signals reserve scarcity and stress in funding markets requiring Fed intervention.