Global Liquidity Watch: Weekly Update
At the end of the day, continued fiscal deficits will increase US public debts, which requires more liquidity, more monetization and more currency debasement.
Which is good news for holders of scarce assets (equities, RE, gold, BTC, crypto).
Which is good news for holders of scarce assets (equities, RE, gold, BTC, crypto).
Delphi Digital • The Year Ahead for Markets 2025 - Delphi Digital
A typical liquidity cycle lasts 5-6 years from trough-to-trough and, based on the October-2022 low point, we expect the current cycle to peak around Q4 this year.
Global Liquidity Watch: Weekly Update
Back during the 2010-2014 period in particular, the Fed was buying Treasuries as a somewhat optional way to boost the wealth effect, provide extra liquidity, and recapitalize the banking system.
Lyn Alden • May 2024 Newsletter: The Bond Market Is the “Dumb Money” Now
Since then, liquidity has continued to be problematic, and so recently, the Treasury re-introduced buybacks. With buybacks, the Treasury can buy off-the-run illiquid securities with newly-issued on-the-run securities. Despite the fact that their total debt is growing, the Treasury is regularly buying back some of the bonds it has previously issued.