Further a concerted effort to manage inflation has probably led to more economic growth than any other policy decision in the last 70 years. How annoying is it right now not knowing what the price of anything you want to do is?
I also manage a pretty large trading account my own. And before the manufacturing firm, I managed a nine figure prop book for an investment bank. I also have been trading professionally and "on the side" for 20 years.
@SunTrader you don’t get it yet but you’re talking to people with professional trading experience, not retail hobbyists that you might be more accustomed to.
Could you read my post again perhaps? I thought I made it clear that the risk was inflation; not default.
You were responding to Sig here, but I wanted to comment on a couple points. If you want to understand why we have a central bank, studying the history of U.S. banking, and our many bank panics, will answer your question. It is true that the Federal Reserve was described as a "private" institution in the very legislation used to create it in 1913. With the advent of the Great Depression and the banking laws of the 1930s, however, any persistent belief that the Federal Reserve is a "private" institution became an illusion. Among the public, and especially among traders, it would seem there are many incorrect, but firmly held, beliefs regarding the Federal Reserve. One doesn't have to have a correct understanding of the Fed and how it operates to be a good trader, but it couldn't hurt. Our nation's economy runs on fractional reserve banking and credit. The most powerful monetary tools, spending and taxation, are given over to the political process. The Central Bank is left with a weaker too, that of controlling the balance between bonds and reserves. Therefore the ascribing of excessive inflation to the central bank may not make much sense. At the very least, one should recognize that control of our money's buying power is a shared responsibility.
As Tradex put you wrote a book ... again. But Ok you did say the risk is of inflation not default. Yet you don't acknowledge, correct me if I am wrong, the role - big role The fed has in it. Briefly please any further response. Multiple long paragraphs shouldn't be needed. More money chasing goods equals higher prices. Just look at what the fairy dust magic has done for the longest bull market on record.
Trading size implies it is large lol — clearly you’ve never been on a trading floor. Your understanding of inflation and Fed policy is incorrect. One only needs to look at Japan and the Eurozone to see how money supply =! Inflation, because banks are paid interest on excess reserves. Everyone who trades rates and fx knows this, it’s well documented, and it’s been this way in the US for the past decade.
You're right I haven't. Now google something pertinent to imply you have. In my dictionary large is large. How about yours? Or did you somehow read something more into my post other than what was there in back and white? Besides hahaha it was a joke. Not the funniest, still you're picking apart a joke really? As for trading bond rates - I don't - but I keep my eye on them because other market(s) and players do and obviously at some point they will really start moving. Forex, currencies uhhh oh sorry I mean FX (this lingo is tough to get a handle on) I keep my eye on TA and charts because my focus is day to day. You can have the funnymentals month to month year to year. And theories, calculus and stats. OK maybe I use stats here and there. Like how many needy folks there are on ET seeking approval of their postings? LOL I let you know when I get a complete tally. List just keeps growing and growing. Your top of the list if I start one for those who need to flex their "knowledge" muscles repeatedly.
It's funny because you are clueless. Lol okay dude, nice rambling and I hope you enjoy your charts. Just keep your bullshit and disinformation to yourself. You are like the Mike Lindell of ET lol.