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The (Macroeconomic) plot thickens

A few interesting things are happening simultaneously in the markets these days: (1) the obvious one, official rates are going up, and maybe two more #ratehikes are in the books. (2) interest payments on banks reserves, pictured below, both through the discount window and through reverse repo have increased 6X. (3) interest payments on US treasury debt are also at an all time high, because the U.S. debt is also at all time highs. So high it is, it has reached the (4) debt limit imposed by Congress, which would need to be increased in order for the US to avoid a technical default. And in the meantime, (5) the US #dollarindex is down around 12% over the last 3 months and (6) #gold is up around 18% over the same period.


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