"...as excess reserves run off, the real debt load on the Treasury will grow. Do Jay Powell and the other FOMC members have the political courage to end the subsidies for the US Treasury and banks, and thereby end financial repression?"
The International Currency Exchange (ICE) said that it had run out of Turkish lira on Tuesday, after a surge in demand as an unprecedented number of Britons travel to Turkey to make the most of the weak Lira.
The loss of hundreds of billions of assets recently considered liquid by global financial institutions, through the de facto debt moratorium of capital controls, will be a huge shock to the global financial system.
The “regime change” is likely reflecting that “Domestic / U.S. Inflation Expectations” are no longer dictating global asset prices as they have for much of the past few years across both Fixed-Income and Equities.
After last week's surprise 3.8mm crude build, DOE reported a considerably smaller than expected (and API-reported) crude draw but a big build in gasoline and distillates is putting pressure on WTI prices...