I had nightmares I was down again today, so as per custom — I made sure to close out all of my positions sans my BTC at the open. I was heavily short and fortunate to be up 0.54% in a tape seemingly designed to destroy me. I’ll be trading lightly throughout the day to ensure profit.
We have a big problem here: the US 10Yr is back to the highs 4.15%, up nearly 7bps. I’d like to read into this move in yields more — but every time I do the rates then crash lower. As of now, it appears we have a Fed problem. Sure inflation isn’t gone but for some reason — the FOMC just won’t give up on their autistic 2% inflation level. Why is 2% so fucking magical anyway? Moreover, who the fuck made them master and commander of the entire god damned economy? I know.
After 10am we’ll likely swing up again. I’ll be in cash enjoying the paegentry.
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The 2% has no relevance other than to normalize inflation at a seemingly low level and have a target to justify their policy decisions. They want to raise rates and destroy everyone and everything but need the inflation boogeyman to hide behind.
Why did they keep rates near 0% for so long if they are so concerned about fighting inflation?
Did they not know that 0% for 10 years does that sort of thing? Covid and supply chain disruptions just exacerbated the issues but they orchestrated a lot of that as well.
Money shouldn’t be cheap. Foolish things happen. 5% is about right.