"Every basis point of artificial yield suppression is a subsidy to procrastination."
Stanley Druckenmiller wrote that in a Wall Street Journal op-ed on Monday, about the Treasury's plan to at least double long-end bond buybacks to $4 billion per operation. He called the plan a mistake. He called it price management rather than liquidity management. He pointed out there was no liquidity freeze to justify it.
The timeline is arguing about CTA positioning and short squeezes. Meanwhile the man has published Austrian interest theory on the WSJ opinion page.
An interest rate is the price of waiting. Push it down by hand and the thing you have subsidised is the decision to do the hard thing later. Mises spent a career on that mechanism. He called it time preference.
Here is the part worth holding onto. The 30-year touched 5.337% on August 18, a level last seen in 2007. The plan was announced the next day and took it to 5.196%. It has not stayed there, and the first operation does not run until September 9. Nothing has been bought yet.
There is no basis point to manage on bitcoin already sitting in your own wallet. Hold spot.
Stanley Druckenmiller wrote that in a Wall Street Journal op-ed on Monday, about the Treasury's plan to at least double long-end bond buybacks to $4 billion per operation. He called the plan a mistake. He called it price management rather than liquidity management. He pointed out there was no liquidity freeze to justify it.
The timeline is arguing about CTA positioning and short squeezes. Meanwhile the man has published Austrian interest theory on the WSJ opinion page.
An interest rate is the price of waiting. Push it down by hand and the thing you have subsidised is the decision to do the hard thing later. Mises spent a career on that mechanism. He called it time preference.
Here is the part worth holding onto. The 30-year touched 5.337% on August 18, a level last seen in 2007. The plan was announced the next day and took it to 5.196%. It has not stayed there, and the first operation does not run until September 9. Nothing has been bought yet.
There is no basis point to manage on bitcoin already sitting in your own wallet. Hold spot.
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