I’m not an academic in any definition nor am I formally trained even in basics Economics 101 but my gut tells me QE has distorted completely textbook economics in the world of Keynesian and we are actually leaning towards MMT. Whether MMT theory is logical to the academia will depend upon reputational preservation on either side. If one believes in the classical or Keynes theories, hyperinflation would have been the outcome. The opposite is the result after a decade with the debt pile rate of expansion last year was unprecedented in history. Well I didn’t see gold do a Bitcoin expo rally. The money or the sentiment about a safe haven play went straight to Bitcoin. Unfortunately I couldn’t and wouldn’t participate in crypto on a fundamental basis but the market decided, not my opinion. I was massively wrong!
I’m glad that we agree on some major points. These divergence intermarket measures is factual. It is out of my depth to explain it coherently and reminds me of chasing my tail of understanding.
I trust the bond players again for their leading predictive actions. How and when Feds can actually reduce their Bal Sheet or the govt running a trade or budget surplus does not worry me. I just want to ride the coat tails of the smart money so hunting for clues through the footprint of price from the chart is my only option. They can hide everything but not price.
Let’s hope no follow through selling if GP tomorrow.
