Presenting the Fed’s Perfect Plan for U.S. Dollar Oblivion

The Federal Reserve adjourned its annual meeting in Jackson Hole, Wyoming on August 26, 2023 without fanfare but not without consequence.Show more

As always, lots of papers were presented by established figures in the art of monetary tinkering and manipulation at this year’s Jackson Hole meeting. Most papers amount to esoteric confetti, as rewarding as garden variety TikTok videos only utterly denuded of thrill. Occasionally, however, a paper turns out to be a blueprint for a tectonic shift by the Fed. That appears to be the case this year, which is the subject of this video.

As a reminder to viewers, the last time a Jackson Hole paper gave rise to a major monetary shift was in 2019, when BlackRock presented a paper entitled, “Dealing with the Next Downturn.” As luck would have it, the title downturn arrived with the repo crisis of September 2019 followed up by the rollout of Pandemic!!! six months later. Crucially the Fed’s response to those events—creating $5T in new reserves PLUS $5T in new bank deposits, in accordance with BlackRock’s paper—represented a material departure by the Fed from its response to the GFC in 2009; back then, the Fed was acting to bail out the banks, which it did by creating, say, $2T in new reserves without any need at all for new bank deposits.

To summarize: • 2009—no new deposits created by Fed, no inflation. • 2020—Fed creates $5T of new bank deposits, gets big time inflation. • HUGE difference.

This channel produced a video about BlackRock’s 2019 paper entitled, “Larry and Carstens’ Excellent Pandemic.”

Flash forward to the recently-adjourned 2023 Jackson Hole meeting. There is one particular paper that, if implemented, would cause huge inflation and indeed piggyback on and turbo-charge the inflation that’s arisen from the Fed’s implementation of BlackRock’s 2019 paper.

You can find a more complete description of the current video here: https://bestevidence.substack.com/p/presenting-the-feds-perfect-plan

You can find links to materials covered by the video, including the 2023 Jax Hole paper and Marriner Eccles’ March 1947 congressional testimony explaining what will happen if the Fed implements that paper, in the substack link above.

-JT