Global Central Banks = Reckless & Unchecked

Headlines:

No Palatable Exit Strategy For Money Printing/Asset Acquisition Binge.

Even Allowing Bond Holdings To Simply Mature = Rate Ramp…As Federal Debt Diet = Steady

Central Bank Balance Sheet Reduction Chatter = Not Credible As Primary Rationale = To Create “Space” For Future Asset Purchases.

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Background:

1. Federal Reserve = Not Department of Federal Government.
2. Federal Reserve = Owned By Member Banks.
3. Prints Money, Without Limitation/Oversight, To Execute Dual Mandate.

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1. Federal Reserve Balance Sheet [U.S. Treasuries + MBS] = $4.5T = 118% of Annual Federal Budget.
2. Current Status = Money Print On-Hold + Balance Sheet Size Maintained = Reinvestment of Matured Securities.
3. Interest Payments on Securities Remitted To U.S. Treasury = $100B/Yr…Reduces Annual Federal Deficit By 15%.
4. U.S. Treasury Pays...