economics

GDP-moving amounts of money on GPUs and such, it is not, by definition, being spent on something else.

Some examples:

• Non- life science venture capitalists are mostly only doing AI right now. Have something else needing funding? Good luck with that.

• Cloud compute companies are diverting spending from cloud offering to GPU-centric data centers.

Notably, Stephen Miran and Nouriel Roubini recently published a paper about “Activist Treasury Issuance” which is their term that refers to the Treasury Department taking unusual actions to offset the Fed’s tightness. Both Miran and Roubini are economics PhDs and worked in various capacities with the Treasury Department in the past.

In the paper,

China has never exhibited a great ability to corral the millions of trading firms with a license to trade foreign exchange in order to prevent them from disguising capital flows in the form of trade flows. In what’s perhaps the greatest surveillance state ever known, you would think they could. But the data suggest they can’t.

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A wholesale bank’s liabilities are repo borrowings, not deposits. This places US Treasury notes and bonds at the very centre of the modern monetary system. Lately, bank regulators have been attempting to further reduce and even remove Treasuries from capital ratio requirements. This should allow banks to significantly expand wholesale bank lending

It makes sense that the stock of total assets is such a big pile of stuff. You can think of it as the value of all existing raw materials, like land, oil, and timber, plus everything people have produced since the beginning of time that is still here (that hasn’t been consumed or worn out yet), plus all existing paper assets like bank accounts,

(Early 2020 was a big exception to that, since the fiscal impulse and the rate of quantitative easing were so big that they overrode the rise in the TGA, which on its own would be negative for liquidity. The TGA was only increased that high basically for extra financial buffer to support everything else that was happening, since the sheer magnitude

When we invest in commodities, we refer to a broad basket of commodities, weighted in a manner that is largely consistent with each commodity’s contribution to economic activity

We therefore decided to include many of the results of our work with key Ministries/Departments in a separate volume. Thus, Volume III of the Report covers the essence of our work on the key Ministries/ Departments which may be insightful for the readers.

However, here in the 2020s the bond market is riding on a lot of reputational momentum. The things that made it the smart money previously are now largely gone. That’s not to say that the people trading it are any less intelligent than before, but rather it is to say that the structure and size of the market is such that intelligent bond traders