The Death of the Fed Put
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The best way to gain back monetary independence is to end the Fed Put. Based on recent events in the markets and swift movements in monetary policy, that seems to be the direction Fed Chair Jerome Powell is heading. A recent interview with former Fed analyst Danielle DiMartino Booth addressed the how and why Powell may put an end to the infamous Fed Put Wall Street and the elites have been so dependent on amidst a market crash. Booth is fast becoming a favorite of mine, especially since she shared a thread of mine a few months back about the Fed being off the reservation.

Yes, not all RT’s are endorsements, but it’s still reassuring to know someone at her level and expertise isn’t afraid to acknowledge the full scope of what’s really going on here in the world of geopolitics and markets. As she demonstrates at the end of the interview, Mrs. Booth understands that you can’t have a conversation about economics without discussing politics. The two topics switch roles of the tail wagging the dog. They are inseparable. I have said it many times in this rag but not enough analysts address this, which is why I respect Mrs. Booth’s work.
I’ve been making my way through Booth’s book “Fed Up”, which portrays her insider experience of being a researcher at the Federal Reserve Bank of Dallas. One major takeaway from the book is that the majority of people working at the Fed are frankly, academic snobs who as Booth describes, “wear their PhD’s like t-shirts.” They come from academia and never held a real job in their life, let alone a finance job. They simply just like the smell of their own farts and write academic papers in order to impress each other. This archetype, is NOT Jerome Powell…
Mrs. Booth explains that Powell is not an academic blinded by the hubris and arrogance of economic models that don’t portray the reality of the economy’s health. Powell has stated publicly that he does not want to be another Arthur Burns, the Fed chair under Nixon who was responsible for the inflationary debacle which his successor Paul Volcker extinguished by raising the Fed funds rate by 20%.
Today, Powell could be viewed as a Volcker 2.0. The recent Fed actions of consistent raising of rates each FOMC meeting since the spring and stealth QT since last June is further confirmation that Powell isn’t gonna stop raising rates because he’s not an ”academic” global commie like Bernanke or Yellen before him. He’s “Private Equity Powell” for a reason, and his incentives are to preserve the Federal Reserve System and keep his shareholders (the commercial banks) happy (as well as destroy the offshore dollar market, but more on that later).
Powell might not be an Austrian, but he’s acting like one simply because he cares about his legacy and is willing to give America the economic correction it needs in spite of Davos’ goal of destroying it. This is why I believe he’s a sovereigntist. Whether or not he’s a reluctant sovereigntist is a separate question, but I tend to believe he’s doing this for the good of the country. Call it a mix of cautious optimism and naivety.
As Booth says in the interview, Powell is “not an academic”, and he was “lead astray” by them with terms such as “transitory inflation.” He was never on board with their bull shit, which makes sense why he retired such a term term coined by that troll Janet Yellen. Powell is using their economic jargon and metrics against the academic elites at the Fed in his rhetoric to scapegoat his ability to raise rates and tighten. Specifically, he’s “following the wrong data”, such as the lagging jobs and inflation numbers and using it in the “opposite way” as intended by saying the economy is so strong given these lagging indicators, which gives us plenty of room to tighten.
Remember, Powell is a lawyer. He’s playing the rhetoric game and is playing it dirty in spite of Congress who used poor, damning fiscal policy to put this country in the position were in now. Fiscal relief caused the inflation in the first place, and further emphasizes the political and ideological divide in Washington. People like Powell don’t want to deficit spend the country to the grave.

This graph from the interview is clear evidence of the Fed’s success of demand destruction. As they say, “housing is the economy.” Mortgages are up, prices aren’t increasing, more house prices continue flattening, and more and more houses are tumbling in price.
Demand destruction? ✅
Just as Mrs. Booth explains, monetary policy acts with a lag, but since tightening began and because of how aggressive it’s been, the lag-time has been incredibly short due to the “unusually large rate increases” (Powell’s quote). Assuming we only raise 50 bips next week, (which by the way that’s the 20th - 21st for the FOMC meeting), we would’ve tightened 3x faster than any other time since 1980. I’ll be even faster if it’s 75 (which is what I am expecting). This strategy is effective and Powell intends to break the economy. That’s “the job”, and he won’t stop “until the job is done” regardless of death threats.

Don’t forget the main reason why Powell is doing what he’s doing. The Fed is raising rates to destroy the offshore dollar market. There will be no soft landing, and that is deliberate. They're intentionally going to break shit in order to preserve the Fed’s independence. The ODM enables global Marxist (Davos) euro banks to print more money than the Fed itself, and it’s that money which enables them to pay for their Great Reset.
This is the reality. Don’t ever forget what the main goal here is: decoupling from the globalist cabal. Remember also that Powell can’t politically come out and say he’s destroying the offshore dollar market. Volcker received death threats. Do you honestly think there haven’t been assassination attempts on JPow? He needs to tread lightly and proceed with caution. Watch what he does, not what he says.

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